Ganapati Tax Consultancy

01/03/2014

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03/11/2013

Statutory Due Dates.

16/09/2013

http://www.taxalertindia.com/2013/09/income-tax-department-send-another.html

10/07/2013

Cost inflation index(CII)

Income tax department has notified Cost inflation index(CII) for the financial year 2013-14. Income tax department issued every year CII figure which shows the inflation figure and it is very useful for calculating capital gain on the sale of the property. Income tax department has issued a notification no. 40 dated 6 June 2013 about the cost inflation index for the financial year 2013-14 and CII is 939. Full notification as well as cost inflation index of 33 years starting from financial year 1981-82 is as follows.

New Delhi, the 6th day of June, 2013 S.O. 1464(E) - In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes published in the Gazette of India, Extraordinary, vide number S.O. 709(E), dated the 20th August, 1998, namely:-

2. In the said notification, in the Table, after serial number 32 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-
Sl. No. Financial Year Cost Inflation Index
(1) (2) (3)
“33 2013-14 939”
[Notification No.40/2013/F.No.142/7/2013-TPL]

Financial Year Cost Inflation index(CII)
2013-14 939
2012-13 852
2011-12 785
2010-11 711
2009-10 632
2008-09 582
2007-08 551
2006-07 519
2005-06 497
2004-05 480
2003-04 463
2002-03 447
2001-02 426
2000-01 406
1999-2000 389
1998-99 351
1997-98 331
1996-97 305
1995-96 281
1994-95 259
1993-94 244
1992-93 223
1991-92 199
1990-91 182
1989-90 172
1988-89 161
1987-88 150
1986-87 140
1985-86 133
1984-85 125
1983-84 116
1982-83 109
1981-82 100

10/07/2013

1% TDS on property over 50 lakh rule and issue

Finance bill 2013 has proposed that 1% withholding tax will be deducted on purchase of any immovable property (except agriculture land) worth over Rs. 50 lakh. The idea behind levying this 1% TDS is to more and more property dealings coming in scenario of income tax department and nabs the black money in the real estate.

A lot of peoples have booked the flats and houses already and believe to get in 2013. This 1% deduction will be applied on any dealing after 1 June 2013. This is a big headache not only 1% TDS but it requires a lot of paperwork as well as submit the return, deposit the tax amount.

As per the TDS rule in India, the deductor must have a tax deduction account number(TAN), file the tax return and issue tax deduction certificate(Form 16A) to the deductee. This means the buyer needs to have the TAN number, have to file return and issue form 16A to the seller. Also he needs to submit the tax amount in the accounts of income tax.

There is also a complex issue. Generally the seller doesn’t entertain the taxes. So he may fix the condition to pay taxes to the buyer. This will lead to double problem with the buyer.

Around 5 lakhs homes and flats are expected to allot in the financial year 2013-14 according to property research firms.

There are some more issues in this 1% TDS on flats over 50 lakh. Finance bill 2013 doesn’t make any difference to ready property and under construction property. Also the buyer needs to deduct the TDS on the property amount and not on the balance payment. There is also not clarity in the issue of buying the property on loan or joint-name.

A large number of transactions in the property are based on EMI which may be 3-10 years and one need to pay the EMIs to the banks. That means the buyer need to cut an amount in each EMI as TDS which don’t looks practically unless this responsibility shifted towards banks.

This is still a confusion law and hoping for some clarity as well as modification in the rule which is in finance bill 2013.
Keywords-tds on property,1% tds on property,tds on property 1%,new rule of tds on property,property income tax,1% income tax on property.

05/07/2013

Income Tax Deduction in respect of interest on deposits in savings account under Section 80TTA of Income Tax Act, 1961. For giving additional income tax deduction on Interest on Saving Bank Account new section 80TTA under Income Tax Act,1961 was introduced through Finance Act, 2012. This additional deduction u/s 80TTA is applicable only to individual and HUF on interest income from bank saving account .i.e this deduction is not applicable on interest received on time deposit/term deposit.

Eligible Assessee for section 80TTA: only Individual and HUF are elegible under this section, so a firm, an association of persons or a body of individuals will not get the benefit of this section.

Deduction Limit/ Maximum Deduction under Section 80TTA: Rs 10,000/- or actual interest receipt from saving bank account , which ever is lower. Example1. if person receive interest of Rs 15000/- from saving bank account then he has to pay tax on Rs 5000/- and Rs 10,000/- he can claim as deduction u/s 80TTA. Example2. if person receive interest of Rs 9000/- from saving bank account then he don’t have to pay tax on Rs 9000/- and Rs 9,000/- can be claimed as deduction u/s 80TTA.

Meaning of Term Deposit: The deposits under the Scheme mean “term deposits” received by the bank for a fixed period and withdrawable only after the expiry of the said fixed period and includes Reinvestment Deposits and Cash Certificates or other deposits of similar nature.

Reference: Section 80TTA

Deduction in respect of interest on deposits in savings account.

80TTA. (1) Where the gross total income of an assessee, being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account with—

(a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

(b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or

(c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee a deduction as specified hereunder, namely:—

(i) in a case where the amount of such income does not exceed in the aggregate ten thousand rupees, the whole of such amount; and

(ii) in any other case, ten thousand rupees.

(2) Where the income referred to in this section is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body.

03/06/2013

One stop sollution for e filling of tax.

02/03/2013

New Section 80EE about additional deduction on housing loan interest:-

Finance Bill, 2013 proposes to insert a new section 80EE in order to promote affordable housing to first time home buyers by allowing deduction in respect of interest on loan taken for purchase of first residential house. The said section 80EE is proposed to be inserted with effect from 1.4.2014 which is as under:'80EE. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.
(2) The deduction under sub-section (1) shall not exceed one lakh rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2014 and in a case where the interest payable for the previous year relevant to the said assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment year beginning on the 1st day of April, 2015.
(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—
(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
(iii) the value of the residential house property does not exceed forty lakh rupees;
(iv) the assessee does not own any residential house property on the date of sanction of the loan.
(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year.
(5) For the purposes of this section,—
(a) "financial institution" means a banking company to which the Banking Regulation Act, 1949 applies including any bank or banking institution referred to in section 51 of that Act or a housing finance company;
(b) "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.The proposed amendment provides for deduction to maximum of rupees one lakh on a loan taken for a residential house property; however said deduction can be availed of only on satisfaction of the conditions provided under sub-section (3).A new section 80EE is proposed to be inserted by the Finance Bill, 2013. The said provision proposes to allow deduction for interest paid on loan taken by individual assessee from a financial institution in the financial year 2013-14 for acquiring residential house property to the extent of rupees one lakh. The said deduction is available subject to conditions being satisfied which are provided in sub-section (3) to the proposed section. The deduction of this section can be availed only for the assessment year 2014-15, if in case the interest paid in the financial year 2013-14 is less than one lakh, in such cases the assessee is entitled to claim deduction of the balance amount in assessment year 2015-16. However, the proposed section provides that if the assessee avails deduction under this section then such interest portion shall not be allowed under any other provisions of the Act. Keywords-section 80ee,section 80ee of income tax act,it section 80ee,sec 80ee about interest on housing loan.interest on housing loan new section,new section about interest on housing loan,section 80ee of income tax,new section 80ee income tax

14/09/2012