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F.A.Q. on Indian Income Tax Laws!
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A blog to refer as solution to your problem about Indian Income Tax Laws. Readers can also ask question on Income Tax. The format of blog is kept as F.A.Q .
Recent Posts Tagged With 'exemption'
Can You Claim Exemption u/s 54F for Modification or Expansion of An Existing House ?
No , said the Kerala High Court in Meera Jacob vs ITO [ dt of order 9/06/2008 ] 313 ITR 411 . The small order of Hon,ble High Court is as under : The question involved is whether the assessee, in the computation of long term capital gains...
Is Exemption u/s Sec. 54 Allowed Even if New House is Purchased from Borrowed Funds ?
Section 54 provides relief to a tax payer who gets gains on account of sale of residential house. The provision u/s 54 provides that tax will not be imposed on long term gains on sale of residential house up to the extent gains same is utilised...
Two Recent Judgments Proving Very Taxing For Assessee!
Income Tax Act has a provision u/s 14A which states, in simple terms , that any expense incurred by a taxpayer on earning of income which is exempt from tax is not allowable as deduction. There was however , no method of computation provided and thus...
Can You Claim Exemption u/s 54 & 54EC Simultaneously ?
I have sold a residential house in April' 09 on which the long term capital gain is working out to be Rs.20 lacs.Also, I purchased a residential house in March'09 (I do not have any other residential property of any kind) for Rs.12Lacs.Can I invest R...
What Are The Tax Benefits to Winners of Galantry Awards?
I am an army officer who has been awarded Sena Medal for Gallantry. I am in active service, what kind of tax benefits/exemptions do I get. Please tell me the authority, act etc which I can quote to the relevant authorities. Abhishek Singh, Delhi Se...
Is Leave Encashment Taxable ?
I have changed my job recently and shifted from Chennai to Hyderabad. In have joined new company in the month of Feb 2008.My previous company has paid for the balance earned leave as leave encashement (Rs. 153,000) and added in to my total salary and...
Is Alimony Paid To Wife Taxable In Her Hand?
What will be the tax implications of the following payments received by a divorced lady from her former husband: Fixed maintenance charges at Rs.25,000 p.m. for six to eight months (after the divorce) followed by two lump sum payments of Rs.5 lakhs e...
Is Salary or Pension Received By Employees Of United Nations Tax Free?
Yes is the emphatice answer .The provision given under the United Nations (Privileges And Immunities) Act, 1947 shall override all other laws passed in India , is given in section 2 which is as under :2. Conferment on United Nations and its represe...
Can You Get Exemption U/s 54F Even If Builder Does Not Complete House Within Three Years?
We have sold a old land long term asset and invested for the purchase and construction of a flat in a apartment in Bangalore, with the one year of sold of asset and claimed deduction u/s 54 f of income tax act, but later the builder is not completed ...
What Are The Types Of Pension Exempt From Tax?
Whether pension received by gallantry award holder is taxable as per Income Tax Act. Somya Krishnan ,KochiYes, pension received by gallantry award holder is tax free , but the types of award is also notified. Section 10(18) of the I T Act provides ex...
Can You Get Exemption U/s 54 or 54F If House Is Taken On Lease?
I am about to purchase a part of house (Linter) in rural Himahcal Pradesh out of my long term capital proceeds. But as per the local by laws outsiders of Himachal cannot purchase such property in rural area... Only via media is that I get the same on...
Why Sur Charge Can Not Be Imposed Despite Having Income Exceeding Rs 10 Lacs?
i) My taxable income from salary = 780000ii) Short term capital gain (from shares) = 115000iii)Long term capital gain (from shares) = 120000 My total income by adding above( i ,ii,iii ) crosses RS 10 lakhs . Am I liable for 10% surcharge.I have no ...
How To Know If Stipend or Scholarship or Fellowship Awarded To You Is Tax Exempt?
1.Dear Sir,I am on a Commonwealth Professional Fellowship to UK for 03 months. If I save some of my stipend would be tax exempted. However, I would be paying tax for the income I had for rest of 09 months in India. Thus please suggest ...
How To Use Capital Gains Account Scheme To Save Tax?
What Is Capital Gains Account Scheme? If you get long term capital gains , Income Tax Act provides certain exemptions under section 54,54B,54D,54F and 54G .In short these exemption are for capital gains earned on account of Sale of a resid...
A Tale Of Gifts Between Mother & Daughter!
My daughter was holding one plot of 9000 sq. ft bought in 1995 and in 2007 she has gifted this plot to her mother by way of settlement deed.My question is can her mother sell this plot under long term capital gain tax and if she reinvest this amount ...
