By making a cool insertion in section 17(II), Finance Minister has nullified the Supreme Court judgement. PSU employees have been fiting a long battle. as per the Income tax rules applicablle since April 2006, if a PSU employee stays in quarters provided by the PSU, 20 % of His salary ( including all allowance ) are considered as Perk and Taxed. Same is FREE for Central Government and State Government ( Courtsey IAS Lobby and Central Government Baboos making Income Tax Rules ) . PSU employees went to saveral Highcourts court and got stay. Matter was further taken up with Supreme Court as this was considered Discriminatary. However Suprement Court stated that It is NOT Discriminatary since Central Goverment and State Government employees stay in Very Bad ( ? ) quarters and can not be compared with quarters provided by Other companies. ( As if PSU Employees stay IN palaces) . Supreme Court in their Nov Judgement, stated that it is for Individual PSU to decide if they are providing Accommodation at Concessional Rent or no. Based on this Supreme,Court ruling , Most of the PSU's stopped deducting Tax on HOUSING Perk. Finance MInister and his Mandarins did not like this and changed the definition of Perk covered in section 17. This UPA goverment is Anti Salary Class specially ANTI PSU. Matter needs to be taken up at Highest level by all concerned. Every person staying in township has to bear additional tax of avg Rs. 20,000/= per annum. with retro effect from year 2001. consider what Finance Minister has done so coolely.
HI guys... I am Amit, Chartered Accountant and located in Mumbai. If u have any difficulties or needs explanation / clarification, u can e-mail me. My e-mail ID is: a_kapadi@rediffmail.com
RE:hi .....
by on Mar 13, 2007 12:49 AM Permalink
Hello Amit, I need a firm advise on how LONG TERM CAP GAIN work if you reinvest into residentail. CASE: OUT of my Long term CAP GAIN , I want to pay off 100% of my home loan, and with remaining proceeds i wish to reinvest in to another flat on my name. CAN I invest in 2 diff property on my own name out of moeny from sale of 1 property. captain.bawa@gmail.com
SIR., MY ONLY INCOME IS ON COMMERCIAL PROPERTY RENT RECEIVED EVERY MONTH.1. KINDLY EXPLAIN HOW TO CALCULATE SERVICE TAX. 2.WHO HAS TO PAY, I.E THE OWENER OF THE BUILDING/PROPERTY ,OR THE TENANT. 3. WHOM TO PAY 4. PAYMENT YEARLY OR MONTHLY. KINDLY EXPALIN IN DETAIL. THANKING YOU. SAS PRASAD [sasprasad@rediffmail.com]
RE:SERVICE TAX ON COMMERCIAL PROPERTY RENT RECEIVED
by vinay shitut on Mar 08, 2007 01:47 PM Permalink
1]Service tax is payable only when you letout your property to businessman for carrying commercial activity in your premises, if you let out your property for residence or educational institution other than commercial coaching classes (Coaching classes are not covered under educational institution defination as per ST law)
2]Pl. wait, budget speech is not final to date. It will take 2 to 3 months to pass the budget. Once the budget passed then one will get idea that how to charge service tax on rental income from let property, letting to commercial activity only not for residence as explain 1. Vinay Ashok Shitut
Understand defintion under Income Tax rule for Senior Citizen is different from commonly known defintion applicable while purchasing Train/Air ticket etc. Please enlighten
RE:Definition of Senior Citizen
by Amitabh on Mar 05, 2007 10:54 PM Permalink
Yes,while purchasing tickets you are senior citizen if you have reached the age of 60.However,under income tax law,you become senior citizen only at the age of 65.
RE:can i know that im bear to pay tax
by GIRISH PANCHAL on Mar 07, 2007 09:31 AM Permalink
do not invest in LIC policies. If u want insurance then take term insurance policies. Also think of mediclaim.
RE:can i know that im bear to pay tax
by Pradeepkumar Tiwari on Mar 05, 2007 10:17 AM Permalink
Yes but that will be minimal. With 10k per month, it means it will be 120000 per year. excemption is for 110000 so you have to pay tax on 10000 per year... if you show any investments or home loans, you should get off without paying anything...
RE:can i know that im bear to pay tax
by Indrajit M on Mar 05, 2007 01:28 PM Permalink
As the taxable income for Men is increased to 1Lakh 10 Thousand, you have to pay tax on Rs.10, 000/- per annum if I am not wrong. This can also be saved if you took policies in LIC or other private insurance agencies.
The retiring age is 60 years for most of the employees in our country. They have to depend on the income from pension, SCSS or MIS. I am not able to understand what is the criteria behind keeping 65 years to get entitled for the tax benefits.
I had invested Rs.150,000/- by SIP in a Equity Mutual Fund in six installments of Rs.25,000/- each. The SIP transaction dates are as follows:-23.3.06,10.4.06,10.5.06,12.6.06,10.7.06 & 10.8.06 A dividend of Rs.6/- per unit was received on 19.7.06. Subsequently I redeemed all the units on 14.9.06. On an overall basis I have incurred a capital loss of Rs.17,286.77. However against some of these instalments I have made gain. The amounts received on redemption of these instalments are Rs.20271.92,18975.85, 18239.36, 25078.66, 24001.59 & 26146.45 respectively after STT.
Subsequently I have made some short term capital gain on redemption of a another Equity Fund. My questions are:-
1. Can I offset this ST Capital Gain against the above ST Capital loss. 2. Do I need to pay ST Capital Gain Tax for gains made in case of some of the SIP instalments though there is an overall loss i.e. will each SIP instalment be treated as a separate investment.
I will be grateful for your advise. My e mail address is : shamins@rediffmail.com
RE:Short Term Capital Loss & Dividend Stripping by S.N.Sengupta
by vinay shitut on Mar 08, 2007 02:03 PM Permalink
yes why not.. set off aviable subject to following conditions. First you have to adjust whatever dividend received by you on your eqity mutual fund only (subject to dividend stripping condition) against your short term capital loss incurred by you on redemption of such units, after adjusting such dividend if there is further loss you can adjust such loss against your short capital gain incurred by you on sale of shares or redemption of other units, subject to payment of deduction of STT on sale of shares or redemiption of units Vinay, AVA
The retiring age is 60 years for most of the employees. The have depend on the imcome from pension, SCSS or MIS. I am not able to understand what is the criteria behind keeping 65 years to get entitled for the tax benefits.
The author states: 'Secondly, foreign investors (NRIs, FIIs, etc) have to pay tax in their host country too on such dividends received. As DDT is not a tax envisaged under the Double Taxation Avoidance Agreements (DTAAs), such investors would end up bearing triple tax on the one income.' 2. This is not correct. For example, under our tax treaty with US, allows to a US citizen & US resident, credit of tax paid in India by or on their behalf. In the case of US company, owning at least 10% of voting shares in the Indian company, distributing dividends, the credit is allowed also of the underlying tax(DDT) 2. Thus, with proper advice, US citizen, company or resident, can claim credit of DDT in US
