More Than One Self Occupied House Property

It is very common nowadays to own more than one house property in the upper class of our society. So it’s very important to know the tax implications of owning more than one house property so that it doesn’t hit hard on taxpayers.
Let us first know about the various types of House Property. It can be categorized as Self Occupied Property (SOP), Let Out Property (LOP) and Deemed to be Let Out Property (DLOP)
Self Occupied Property: It means a house that is being occupied or is lying vacant for residential or commercial purpose, which is letting the owner to reside in that house is Self Occupied Property. The annual value of SOP is considered as nil. The only deduction that is available is towards interest on loan subject to ceiling limit of Rs.150000.
Let Out Property: If any of the house is actually let out and there is a rental income from the same, it will be taxed as LOP, based on its annual value, i.e., the actual rent or reasonable expected rent in a

Multiple Form 16 when worked for more than one employer

It is very important to know how hard the tax can hit an individual at the time of Income Tax Return Filing if they switch from one employer to other in the same Financial Year or they work under two employers. Form 16 is the mandatory requirement in respect of return filing for salaried individuals.

Form 16 is a certificate issued by an employer to an employee who provides details in respect of salary earned by the employee and tax deducted at source by the employer. It’s a TDS certificate issued by the employer to the employee. The employer takes into account the exemptions and deductions available to employee after considering the slab benefits and deduct
taxes at the time of payment of salary.
Multiple Form 16
It is a very common situation wherein employee switches employment during the year and fails to

Whether additional reasons recorded after date of issuance of notice u/s 148 can be looked into for purposes of determining validity of proceedings initiated u/s 14& - NO: Delhi HC

THE issues before the Bench are - Whether additional reasons recorded after the date of issuance of notice u/s 148 can be looked into for the purposes of determining the validity of the proceedings initiated u/s 147; Whether until and unless, there was an addition on the basis of the original reasons, no other additions could be made in view of the expression “and also” used in Explanation 3 to Section 147; Whether the validity of the proceedings initiated upon a notice u/s 148 have to be judged from the stand point of the reasons which existed at the point of time, when the Section 148 notice was issued; Whether it is permissible for the AO to conjure

S. 153A: After expiry of s. 143(2) time limit, s. 143(1) assessment is final & addition u/s 153A can be made only if incriminating material is found in search

For AY 2005-06, the AO passed an intimation u/s 143(1) accepting the return as filed. Subsequently, there was a search u/s 132. The AO noticed that an amount of Rs. 93 lakhs received by the assessee as a loan in earlier years had been treated as a gift and credited to the capital account. He passed an assessment order u/s 153A in which he held that the said amount was assessable as a cash credit u/s 68. The CIT(A) partly confirmed the addition. Before the Tribunal, the assessee argued that as no incriminating material was found during the search, the addition could not be made u/s 153A. HELD by the Tribunal upholding the plea:

TDS Refresher

 

Ø  U/s 196 no TDS on payment made to governments.

Ø  U/s 195, TDS means Tax +Surcharge+educes.

Ø  On reimbursement of expenses, TDS is applicable.

Ø  There is an amendment in section 40(a)(ia) in Budget 2012, where expenses are allowable in case TDS not deducted and paid if the deductee remitted its tax and file its return of income. For this, Certification u/s Form 26A (see rulw 31ACB) with CA certified annexure required.  Kindly be noted that now there is no more provision of section 139 and hence TDS once not deducted on expenses, will be disallowed forever.

Ø  Penalty u/s 271H for non filing or false filing of E TDS return is from Rs. 10,000/- to 1,00,000/-

Ø  Compulsory fees u/s 234E of Rs. 200/- per day for delay in filing E TDS Return.

Ø  TCS of 1% u/s 206 for each time purchase of bullion exceeds Rs. 200.000/- or jewelry exceeds Rs. 500.000/-.

Ø   U/s 194 IA, buyer requires to deduct TDS @ 1% for purchase of immovable property value exceeds Rs. 50 Lakhs.

Ø  Interest u/s 201 – for non deduction 1% and for non payment 1.5%.

Ø  Rule 119 provides how to calculate interest.

Ø  Form 15H for senior citizen and Form 15G for others.

Ø  U/s 194C(4), personal expenses are not subject to TDS.

Ø  Service tax not required to be considered for disallowance u/s 40(a)(ia).

Ø  Sale of stamp papers attracts no TDS u/s 194H.

Ø  No TDS attracted between HO &  Branch Transactions (foreign also).

Clarification by Haryana VAT authorities wrt VAT implications on Agreements for Sale of buildings and Joint Development Agreements

 

Keeping in view the lack of uniformity in assessment of tax and the resulting avoidable disputes, the Haryana Excise & Taxation Commissioner has released a Circular Memo No. 152 /ST-1 dated May 7, 2013 (“Circular”) clarifying the applicability of VAT on the construction contract and Joint development agreements (“JDA“) executed by builders and developers for sale of flats and buildings under the Haryana Value Added Tax Act, 2003.

Exchange Rate effective from 17/05/2013

TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART-II, SECTION 3, SUB-SECTION (ii), EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

Whether when a notice issued u/s 226(3), is not pursued further by Revenue in terms of any show cause notice, assessee can still be treated as deemed assessee in default - NO: HC

THE issues before the Bench are - Whether when a notice issued u/s 226(3), is not pursued further by the Revenue in terms of any show cause notice, the assessee can still be treated as deemed 'assessee in default' qua this notice; Whether a notice can have a valid enforceable effect in law, even if it has been waived; Whether in case of a general lien, bank has a lien on the account in respect of dues of the party and the said parties are indebted to bank; Whether in absence of a garnishee order, the saving bank account and open cash credit account can be clubbed together; Whether proceedings u/s 226(3) are in nature of garnishee proceedings; Whether a person to whom garnishee notice is issued, must be in the position of a creditor with

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. 40(a)(ia) TDS Disallowance: Cal High Court Speaking Order On Merilyn Shipping

CIT vs. Crescent Export Syndicate (Calcutta High Court)

S. 40(a)(ia) TDS: Special Bench verdict in Merilyn Shipping is not good law



The assessee incurred expenditure on which TDS ought to have been deducted but was not. The AO disallowed the expenditure u/s 40(a)(ia). On appeal, the Tribunal relied on Merilyn Shipping & Transports 146 TTJ 1 (Viz) (SB) and held that the disallowance u/s 40(a)(ia) could be made only for the expenditure that is “payable” as of 31st March and not for the amounts that have already been “paid” during the year. On appeal by the department to the High Court, HELD reversing the Special Bench:

Annual and Other Obligations under Companies Act, 1956

Obligations under the Companies Act, 1956 with respect to E-filing of Forms, Returns and Documents with Registrar of Companies

The Companies Act, 1956 ("the Act") provides for and casts an obligation on Companies incorporated under the Act to file various forms, returns and documents under various sections with the Registrar of Companies (ROC) in an electronic mode within the prescribed time along with the prescribed fees or with payment of additional fees in the event of delayed filing.

The Ministry of Corporate Affairs has introduced a new e-governance Project MCA-21 which is designed to fully automate all processes related to pro-active enforcement and compliance of legal requirements under the Companies Act, 1956. The major component of this project are front office and back office. The front office is administered through the portal www.mca.gov.in. since September 30, 2006. Physical filing of forms under Companies Act has been discontinued and the physical form discarded.. All filing after September 30, 2006 is through e-filing using specially designed e-forms.

The various documents, returns etc. that are required to be filed with the ROC could be categorized as those which are required to be filed once in a year (Annual Filing Obligations) and those which are required to be filed from time to time with ROC/Central Government as provided under the Act (Other Filing Obligations).

FAQ on “ROC or Company Law Compliances”

 

Whether compliance with ROC is mandatory to Company?
Registrar of Companies (ROC) is the official agency that deals with administration of Companies Act 1956 and it falls under Ministry of Corporate Affairs. All the Companies incorporated under the Companies Act, 1956 are mandatory required to file various forms, returns and documents with the Registrar of Companies (ROC) in an electronic mode within the prescribed time along with the prescribed fees.

Understanding Domestic Transfer Pricing Concept under India Income tax laws:

 

Widening of scope of Section 40A (2), Transfer Pricing regulations to apply to domestic transactions, (Applicable for the AY 2013-14)

 Under Section 40A(2) of Income Tax Act, 1961 in case of any transaction with a related party, the Assessing Officer can disallow the expenditure while computing income from business or profession  which in his opinion is excessive or unreasonable having regard to the:

Instructions of ITR- 4S Sugam for E-filing of AY 2013-14

We have uploaded ITR-4S Sugam as applicable for AY 2013-14 / FY 2012-13 for online filing of Income Tax Returns for Presumptive Income Tax Return. This Return Form is applicable for assessment year 2013-2014 only, i.e., it relates to income earned in Financial Year 2012-13. We have also discussed who can use this Return Form, Who cannot use this Return Form, for whom SUGAM form is not mandatory and Manner of filing this Return Form.

1. Who can use this Return Form

This Return Form is to be used by an individual / HUF whose total income for the assessment year 2013-14 includes:‑

Solution to Problems in Registering DSC on Income Tax Website

Problem Description : I am not able to register my Digital Signature Certificate.

Corrective Action:This occurs due to the following reasons:

• Check if Java Runtime Environment 1.7 or above is installed in your PC. If it is not installed, click here. to download.
• If Java Runtime Environment 1.7 or above is installed in your PC and still you are unable to register DSC to e-Filing application, this is because the Java is disabled. GO TO Internet Options –> Advanced –> Settings . Enable the chec-box for ‘Java’.

Problem Description : While trying to e-File Income Tax Return using Digital Signature Certificate, the ‘Select your .pfx file’ or ‘Select with your USB Token’ buttons are not displayed or are not clickable.

Corrective Action:This occurs due to the following reasons:

Whether normal rule of valuation of stock-in-trade that they are valued at cost or market price whichever is less at end of year can be applied to derivative contracts also - YES: ITAT

THE issues before the Bench are - Whether an assessee trading in derivative contracts can treat the same as regular stock in trade; Whether the normal rule of valuation of stock-in-trade that they are valued at cost or market price whichever is less at the end of the year can be applied to derivative contracts; Whether the ordinary principle of commercial accounting requires that while anticipated loss is taken into account, anticipated profit in the shape of appreciated value of the closing stock is not brought into account; Whether "mark to market loss" arising on such contracts can be allowed, even though when there is no actual loss and Whether derivative contracts are not purely contingent in nature rather loss or profit is somewhat ascertainable in view of constant watch on daily market value. Answers to all these questions were answered in favour of the assessee.

All about Income Tax Ombudsman

As a taxpayer, you may have some very legitimate grievances relating to your income-tax matters of settlement of your claims. You may, for example, feel that the Income Tax Department owes you a certain refund of tax but it is not doing enough to hear your grievance of complaint nor taking action to redress it. You may also be aggrieved about the rude behaviour of officials or their failure to follow instructions and circulars of the Board. In all such cases, you can approach your Income tax Ombudsman. Before you do so, however, you have to ensure that certain conditions are fulfilled. The Ombudsman is governed by, and has to act within, the framework of the Income Tax Ombudsman Guidelines, 2006.

Whether pendency of civil suit is bar on writing off bad debt when assessee is of opinion that probability of recovery is not even remote - NO: Delhi HC

THE issues before the Bench are - Whether pendency of a civil suit is a bar on writing off the debt, even if in the opinion of assessee its probability of recovery is remote and Whether in order to claim a bad debt, mere writing off the same in assessee’s books is a sufficient compliance of section 36. And the verdict goes in favour of assessee.

Facts of the case

Assessee, a private limited company, is engaged in the business of dealing and servicing motor vehicles and had taken certain property on lease from three landowners for a period of three years renewable for two further periods of 3 years each. The property consisted of a plot of land whereupon the lessors were required to build a warehouse cum workshop and hand over the same to the assessee. In this regard, the assessee advanced certain sums to the lessors which

The Service Tax Voluntary Compliance Encouragement Scheme-clarifications

Circular No. 169/4 /2013 - ST

F. No. B1/19/2013-TRU

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Tax Research Unit

*****

New Delhi, dated the 13th May, 2013

To,

Chief Commissioners of Central Excise and Customs (All),

Director General (Service Tax), Director General (Systems),

Director General (Central Excise Intelligence), Director General (Audit),

Commissioners of Service Tax (All), Commissioners of Central Excise (All), Commissioners of Central Excise and Customs (All)

Madam/Sir,

Sub: The Service Tax Voluntary Compliance Encouragement Scheme-clarifications regarding.

Service Tax Voluntary Compliance Encouragement Scheme,2013

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India Ministry of Finance (Department of Revenue)

Notification

No.10/2013 - Service Tax

New Delhi, the 13
th May, 2013

G.S.R…..(E).-