10 lesser known Income Tax Deductions

10 lesser known Income Tax Deductions Posted: 16 Jul 2012 08:49 PM PDT We all know about the popularly know deductions like deduction u/s. 80C & 80D. But many times we use to forget to claim many other deductions which are available under the Income Tax Act, which can reduce our tax burden significantly. In this article we discussed 10 such lesser know deductions... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Empanelment – UCO Bank for CA firms as Concurrent Auditors Posted: 16 Jul 2012 08:30 PM PDT The completed application, in the prescribed format, along with documents as specified in para(d) above in a properly sealed cover should be sent at the address given below so as to reach us on or before 31.07.2012. The envelope must state "APPLICATION FOR EMPANELMENT OF CONCURRENT AUDITORS". [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Tax on Services Provided 'by' & 'to' Charitable Trust Posted: 16 Jul 2012 08:28 PM PDT Whether Charitable Trusts (CT) are liable to pay ST? Yes. Refer to charging section i.e. Section 66B which reads as follow: 66B. There shall be levied a tax …. provided ….. by one person to another……. Does it mean that CT will have to pay ST on services provided by it? Yes. Section 66D containing... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] IPO expenses borne by assessee for sale of his shares deductible from capital gain Posted: 16 Jul 2012 08:26 PM PDT Expenses having been incurred for the IPO through which assessees were also able to sell their shares, the expenses necessarily were, in our opinion, in connection with sale of such shares. Assessees could take advantage of clause (1) of Section 48 of the Act. Assessees had produced evidence in the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] If employment services entirely rendered outside India, salary not taxable in India Posted: 16 Jul 2012 08:24 PM PDT In terms of section 9(1)(ii) income chargeable under the head "salaries" under section 15 shall be deemed to accrue or arise in India if it is earned in India, i.e., if the services under the agreement of employment are or were rendered in India. In the instant case, the employment services were... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amount received for sale of trade mark taxable only wef A.Y. 2002-03 Posted: 16 Jul 2012 08:23 PM PDT From the above circular, it would be clear that the amendment bringing self generated intangible assets such as trademark to capital gains tax only with effect from Assessments Year 2002-03 onwards. In this case, we are concerned with Assessment Year 1999-2000 and therefore, the amendment would... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 80-IA Repairing of Old Gas Cylinder to make them reusable is not manufacture Posted: 16 Jul 2012 08:22 PM PDT Assessee is engaged in processing of unusable gas cylinders, though there is nothing to indicate that the gas cylinders are completely 'broken'; in fact, none of the processes stated to have be undertaken address the same. However, as apparent, it is only where the processing leads to a... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Sale of shares to parent company at cost can't be held as sham or colourable device Posted: 16 Jul 2012 08:21 PM PDT If cost of asset not doubted in earlier years, it can't be held as sham if sold to parent co. at nil profit I T : Transfer of shares held as investments by subsidiary to overseas parent co. at cost of acquisition is not a sham nor colourable device [[ This is a content summary only. Visit my website for full links, other content, and more! ]] No addition to be made by estimating higher NP when books are audited U/s. 44AB Posted: 16 Jul 2012 08:21 PM PDT The assessee has been rendering income from the business and the failure on the part of the taxing authorities to have discovered undisclosed income on the basis of search carried out cannot be finalized for the purpose of satisfying the search operation by estimating a meager higher amount as rate... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Tribunal has no power to adjust payment of sales tax against service tax Posted: 16 Jul 2012 08:16 PM PDT In the case of Idea Mobile Communication Ltd. v. CCE&C [2011] 32 STT 262/12 taxmann.com 307 (SC), the Apex Court has confirmed the view taken by the High Court wherein it was held that a transaction of selling of SIM card to the subscriber is also a part of the 'service' rendered by the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Sell of business to broker by sub-broker with tangible assets would not make sale agreement to that of agency Posted: 16 Jul 2012 08:15 PM PDT We find that when a person was allowed to act as sub broker, he was initially allowed to issue even a contract note to his clients. Moreover, such sub broker could receive payments from clients and make payments to clients from his accounts. This position was changed vide Circular No. 9... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Once payment of service tax made by service provider to Treasury, assessee may not be denied benefit of Cenvat credit subject to proving use of service in accordance with law Posted: 16 Jul 2012 08:08 PM PDT Once the payment of service tax had been made by service provider to Treasury, assessee may not be denied the benefit of Cenvat credit, subject to appropriate examination of the allegation in the show-cause notice and proving use of the service in accordance with law. The original authority had to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Asessee Eligible for CENVAT credit on outdoor catering service used for serving food without recovery to employees Posted: 16 Jul 2012 08:01 PM PDT The short question to be considered in this appeal filed by the department is whether the view taken by the lower appellate authority that the respondent is eligible for CENVAT credit on outdoor catering service used for serving food to their employees during the period of dispute (July to December... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Guidance Note on Certification of XBRL Financial Statements Posted: 16 Jul 2012 07:15 PM PDT The objective of the Guidance Note issued by ICAI is to provide guidance to the practitioners in certification of XBRL formatted statements in terms of the requirements of the Ministry's General Circular No. 57/ 2011 dated July 28, 2011 read with MCA's General Circular No. 43/2011 dated July 07,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Audit Risk- Component, Model, Concepts, Assessment & Internal Control Posted: 16 Jul 2012 07:08 PM PDT In very broad terms, audit risk is the risk of a material misstatement of a financial statement item that is or should be included in the audited financial statements of an entity. In this regard, a financial statement item includes any related notes to the financial statements. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Petition under section 397/398 – Subsequent events – Scope? Posted: 16 Jul 2012 06:59 PM PDT Section 397/398 of the Companies Act, 1956 provides relief to the minority shareholders against the oppressive actions of the majority and the mis-management in the company. Section 399 of the Companies Act, 1956 deals with the issue as to who can approach the Company Law Board (CLB) seeking relief... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Portfolio Managers – Deployment of clients fund in liquid Mutual Funds Posted: 15 Jul 2012 08:23 PM PDT 1. SEBI has received representation from various portfolio managers seeking clarification regarding investment in short term liquid Mutual Funds by portfolio managers. 2. It is hereby clarified that pending investment of funds, any short term deployment of funds in liquid Mutual Funds for the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] CAASB releases revised Preface and Cost Audit and Assurance Standards 101 %amp; 102 Posted: 15 Jul 2012 08:15 PM PDT Download Preface to CAAS , Download CAAS 101, Download CAAS 102 [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Scheme for Investment by QFIs in Indian corporate debt securities Posted: 15 Jul 2012 08:03 PM PDT It has now been decided to allow QFIs [hereinafter defined as per the revised definition in terms of para 2 (v) below] to purchase on repatriation basis debt securities subject to the following terms and conditions : (i) Eligible instruments and eligible transactions – QFIs shall be permitted to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Services of brokers can be availed to Sale of securities allotted in Primary issues on the same day Posted: 15 Jul 2012 08:01 PM PDT Kindly make a reference to para 2(v) of our circular IDMC. PDRS. No. PDS.1/03.64.00/2000-01 dated October 6, 2000 on the captioned subject wherein it has been stated that services of brokers should not be used for sale of securities allotted in primary issues on the same day. 2. The guidelines have... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amends in the Notification No. 12/2012- Customs, dated 17th March, 2012 Posted: 15 Jul 2012 07:59 PM PDT Notification No. 45/2012-Customs In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amendment in Tariff Value of Gold , Silver, Palm Oil, Poppy Seeds, Brass Scraps – Notification No. 58/2012-CUSTOMS (N. T.) Posted: 15 Jul 2012 07:55 PM PDT Notification No. 58/2012-CUSTOMS (N. T.) In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendment in the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]