RE:Tax saving
by Amitabh on Jun 01, 2008 10:37 AM
No direct saving this way.However,if you gift to your parents,any income they earn out of the gift will be taxed in their hands.But even this concession is not available if you gift to your spouse or minor children. Your taxable income will not reduce by giving the gift as gift is merely an application of income. But your parents or children will not be taxed on the gift,whatever the amount.
RE:ndira Vikas Patra-Taxable after maturity?
by Amitabh on May 16, 2008 09:23 PM
No tax on principal amount.As regards the interest,yes,if you have not earlier declared the interest in your return on due basis,you will need to show them when you finally get the amount.Interest on IVP and KVP is fully taxable.
RE:taxability
by Amitabh on May 10, 2008 07:06 PM
If your fixed deposit is for a period of 5 years or more the same will be eligible for deduction under Sec 80C within the overall limit of Rs 1 lac.Interest is fully taxable.When you get back the principal,it will not be taxed under any circumstances.
I just startted some on line trading of shares through a broker house. I deposited 1 lakh and I got a reasonable return with in month month through short term gain ( about 10% return in one month. Now I am thinking of putting more money . Can U advise me the tax imlication for the short term gains and how it will be deducted. Is there any thing called tax on speculative gain ? The broker house told me that we have to pay 15 % flat on capital gain. Is there is admissible deductions for that. How can I reduce the tax burden
RE:tax on share trading
by Amitabh on May 08, 2008 07:24 AM
Broker house is right.The cost of acquisition of shares and brokerage can be deducted.STT cannot be deducted.
I am in services business. I provide services out side India on short durations of 30 to 45 days, and get paid by Electronic payments in my bank a/c in India. Is this icome taxable?
RE:Money earned abrod
by Amitabh on May 03, 2008 07:50 PM
If you are resident of India,that is stay in India for a period of 182 days or more in the financial year ,then yes,it is taxable in India,even otherwise it is taxable because the money is received (for the first time in your hands) in India.But if this money is taxed in the country where you provide service as well,you will get relief in terms of the double taxation avoidance agreement,if any between India and that country or unilateral relief in terms of Sec 91 of the Income Tax Act,whichever is more beneficial to you.
I would like to know about what all the expences is allowed in the Proprietory Firm. Like- If Proprietor use a Vehicle so whether Maintenance of Vehicle is allowed for expences. Children School Fees, Tel. Bill of Residence as most the time it is used for the Business purpose also. There will be more such expences. so we want to know from the experts on what are similar expences allowed.
RE:Expences allowed in a Proprietory FIRM
by Amitabh on May 01, 2008 07:23 PM
All expenses pertaining to business are allowed.None of the personal expenditure will be allowed.There is no hard and fast rule for apportionment.It depends on the facts and circumstances of each case.If you maintain a log or record,it will be easier for you to establish your claim in case your return is taken up for scrutiny.
I worked in abroad for 2 years during 2006-2008. During the period, I visited India a couple of times with less than one months stays. I have made wire transfers to my wife who has a joint account with me in India. She invested that money as Bank Deposits in Rupees mostly on her name, while keeping my name as a joint investor in some deposits.
Please tell me whether these deposits come under taxable income and necessite for me to file Income Tax Return for the current financial year ?
RE:Dear Mr. Amitabh ji,
by Amitabh on Apr 30, 2008 04:08 PM
You are a non resident in India.You have transferred money to your wife in India.The income that she earns as interest on the same will be clubbed with your income.But as you are a non resident in India so you need not pay tax on salary earned abroad.If the interest income that your wife earns (which will be clubbed with your income) alongwith any other income ,if any,that you earn in India exceeds the initial exemption limit (Rs 1,10,000 for the year 2007-08,only then you will need to pay tax and file your return.
Hi, My Annul income is 5.2Lac, pl. how much saving requrment for max. tax saving , currently i have 20000-LIC,40000-Tution fee(2 Kits)& 150000/-home loan & 25000/- bond
my brother is working in maldives on work permit. He has getting approx Rs 30000 pe month salary over there. Is it compulsory to file tax return in India. If yes , What will be his tax liability.
RE:TAX LIABILITY for a person working out of india
by Amitabh on Apr 23, 2008 07:24 PM
If he is a resident of Mauritius and getting salary for services rendered there,he does not require to file tax return in India.There will be no tax liability in India.
RE:TAX LIABILITY for a person working out of india
by naveen jain on Apr 24, 2008 01:19 PM
he is not in Mauritius . He is in Maldives but not a resident . He is on work permit
RE:TAX LIABILITY for a person working out of india
by Amitabh on Apr 24, 2008 09:54 PM
I am sorry,I meant Maldives only..He may be on work permit there but if he is in India for less than 182 days in a year,he is not a resident of India and any income that he earns and receives abroad will not be taxed in India.
RE:TAX LIABILITY for a person working out of india
by PacifistCrusador on Apr 25, 2008 08:38 PM
if one's salary is taxed in one country then it cannot be taxed in home country.
RE:TAX LIABILITY for a person working out of india
by Amitabh on Apr 26, 2008 02:28 PM
It can be.If you are a resident in India and earn any salary abroad it will be taxed in both countries.Similarly if you are a resident of some other country but earn salary in India,it may again be taxed in both countries.However,this is subject to double taxation avoidance agreement,if any,between India and that other country.
