article is silent about interest received from savings bank account. what if i m paying Rs.60000/- towards personal loan interest and gaining Rs.12000/- as interest from my savings a/c.
RE:tax exemption
by Amitabh on Apr 28, 2007 01:33 PM
Personal loan interest is notmally not deductible at all.Unless you can show that the loan is being used for business or for earning some income which is taxable and you should be allowed to deduct this interest from the income earned for calculating tax.Bank interest received is now fully taxable.
RE:query about tax exemption
by Amitabh on Apr 28, 2007 01:41 PM
Agricultural income is fully exempt rom tax.However,if the same is more than Rs 5000 in a year,it is taken into account to determine the rate at which your other incomes will be taxed.Suppose,the exemption limit is Rs 1,10,000 and your income from business is Rs 2,50,000 and agricultural income is Rs 20,000.First you will have to calculate tax on total Rs 2,70,000 assuming agricultural income as taxable.Now add agricultural income to the exemption limit,so you have Rs 20,000 plus Rs 1,10,000.This ccomes to Rs 1,30,000.Now calculate the tax on Rs 1,30,000 also.Now subtract this figure of tax from the tax you calculated for Rs 2,70,000.The figure so arrived at will be your tax liability.Now add surcharge/cess as applicable.Hoever,the above procedure would be applicable only if the agriculture income is Rs 5000 or more.This is what is written in the article.
RE:query about tax exemption
by Amitabh on Apr 29, 2007 01:22 PM
No,if the income taxable in India is below minimum taxable amount.If the income is beyond that limit,they have to file the return.However,there are certain categories of income for which non residents are taxable at a special rate.They pertain to dividends,interest income from units of mutual funds,UTI,bonds or shares purchased in foreign currency and capital gains arising on their transfer.If the non resident's income consists only of those and tax has been duly deducted at source,the non resident shall not be required to file any return even if the amount is above the minimum taxable amount.
RE:query about tax exemption
by naveen fernandes on Apr 28, 2007 11:52 AM
It is tax free irrespective of the amount. The example takes an annual figure.
it is really cannot be understood which gift to a HUF is exempt from tax; i am not mentioning about the basic exemption of 50K or the threshold limit for taxation. the relatives defined are all for the individual and not for HUF.
RE:incomes are tax-free
by Amitabh on Apr 28, 2007 01:20 PM
Gifts to HUF,even if received from a relative are not exempt from tax.Any sum received by an individual or HUF,if it exceeds Rs 50,000,as per the provisions made in this year's budget,is entirely taxable.Exceptions pertaining to gifts received from relatives are there,but they exist for individuals only.So if an HUF receives any sum of money exceeding rs 50,000 entire sum will be taxed,even if the same is received froma relative of HUF.
RE:incomes are tax-free
by Amitabh on Apr 29, 2007 01:08 PM
However,I would like to addone more thing here.Any sum received as a gift by individual or HUF under a will or as inheritance,even from a non relative,is exempt from tax without any limit.This is applicable for gifts received by individuals as well as HUF.
During financial year 2006-07, i purchased equity shares of different companies totaling rs. 2,45,700. Out of these shares i have sold some shares for a total of rs. 1,23,440. Purchse cost of these shares was rs. 1,14,300 and i also paid rs. 4,802 to icici demat as brokerage and STT for the total shares purchased and sold during the year. Out of this total brokerage of 4,802, rs. 2271 was the brokerage paid against the shares sold for rs 1,23,440 and puchased for rs.1,14,300. balance shares are still with me. kindly advise how much short term capital gain tax i have to pay? is brokerage is deducted from the total gain i.e. gross sale value minus puchase value . Thanks.
I get foregin allowance from my company whenever I go to aborod for service kind of job. I save some of it and bring it back. Will this saved money is exempted from TAX or I have to pay tax on that too.
RE:Tax on foregin allowance
by Amitabh on Apr 28, 2007 01:31 PM
I presume you get this allowance to meet your exepenses while on tour.To the extent this allowance is used for the same,it is exempt.Balance will be taxable.
RE:Tax on foregin allowance
by Amitabh on Apr 29, 2007 08:39 AM
However,if you are non resident for that year,the allowance will not be taxed in India if accrued and received in India.
RE:loss in secondary market
by sri krishna on Apr 28, 2007 11:03 AM
That depends on the head under which your income is categorised. If its "capital gains" then it is treated as follws.
Long term loss cannot be claimed-as you put it. Since long term gains on sale of shares is tax free, loss cannot be claimed.
Short term loss can be claimed against capital gain income arising otherwise than through shares.
If your share transactions are treated as business, then irrespective of the tenure of holding, losses can be claimed.
I understand that the finance bill 2007 introduced deduction of tax on interest payable on 85 RBI Savings BONDS. My total income is below taxable level and I earn interest on 8 % RBI savings Bonds. Is there any provision of filing form 15g/h for avoiding deduction of tax at source.
RE:TDS on interest payable on 8% RBI Savings Bonds
by Amitabh on Apr 28, 2007 01:55 PM
Yes,certainly.TDS on interest on securities is governed by sec 193 of the income tax act and amendment has been made therein to include 8 % RBI bonds within that.If a declaration in writing is made in the prescribed form and verfied in the presecribed manner that the tax on total income for the year in which such income (interest on bonds in your case) is included is nil,no deduction of tax will be made under sec 193.This is clearly as per sec 197A of the income tax act.
