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Tax Planning & Help
Tracked by: 0 Boarder
Dear Friend, The income tax benefit on the interest paid for loan of higher education is in the form of deduction of interest from the income in the FY. following conditions r to be met.
1. U can claim interest pmt. deduction from ur income for urself, ur wife & ur Kids` higher education.
2. The course should be a full time course, distance learning or part time courses r not allowed.
3. the benefit is available for 8 successive FYs from the year u first claim the benefit.
4. No benefit `ll be available on the principal repmt.
Thanks
Ashal...
In reply to:
tax exemption -Interest on education loan
Posted by :
Guest
Can u give me some insight into tax exemption on interest on higher education? If a person is repaying this loan over a few years, how is the tax exemption calculated? 
Tracked by: 0 Boarder
Dear Raajk, no matter u r a resident or non resident indian, if u gift ur wife money either in cash or thru chque/Draft transfer, the income generated by such gifted amount `ll be taxed in ur hands under the clubbing provisions of Sec. 64. To avoid clubbing of the income u have 2 ways, either gift ur wife in kind - say Gold, Shares, MF Units etc. but not property. Second option is give her a interest free loan & ask her to pay back the loan in installments to show the genuineness of the loan.
Thanks
Ashal ...
In reply to:
Giving cash gifts? Taxman is watching
Posted by :
raajk
But i am a Resident Indian and working in an indian company. Already the bonus received is taxed even then giving gift to my wife will be taxed to my wife or to me?
Tracked by: 3 Boarders
You cannot reopen the assessments done for 1985=1999 now. The earliest year that can be reopened is only 2000-2001....
In reply to:
Your tax queries, answered!
Posted by : Guest
i am an state government employ i wanted to know the details of standard deduction,rate of tax and maximum saving during the period of the year 1985-1999 for my areears
Tracked by: 3 Boarders
i am an state government employ i wanted to know the details of standard deduction,rate of tax and maximum saving during the period of the year 1985-1999 for my areears...
Tracked by: 0 Boarder
For the FY 2007 2008, you have already (perhaps) filed your tax returns. How did you exhibit these short term losses? Were these losses incurred by trading through a regular stock broker and by paying STT on each of the transactions?
A correct answer to your question will depend on the correct answer to these two questions....
In reply to:
short term capital gains calculation
Posted by : nevy
I have made short term capital losses in FY2007-08 of Rs. 100,000. In the current year FY2008-09 , I have made short term capital profit of Rs. 100,000. How much tax do I have to pay for current year FY2008-09, considering that this year short term gains are taxed @ 15%.
Tracked by: 0 Boarder
I am extremely thankful for your reply, and that too in quick time....
In reply to:
OLD RECORDS NOT RETAINED
Posted by : subasu
You are supposed to retain the records of income for assessment year 2007-2008 (equal to financial year 2006-2007) for seven years at least. At least you had to keep them till the Assessment is over. The Assessing Officer is entitled to take action as provided for in the Act if you do not furnish the information called for.
However, there is no need for panic. Please approach HDFC Securities with your previous ID and other demat particulars. They will provide you with a statement of transactions done from 2000 to 2006. Similarly, approach ICICI Securities for a record of the transactions from the date you transferred them from HDFC Sec. They too will provide a statement.
In the meantime, please, ask the Assessing Officer some time extention. The A.O. is likely to grant your request if he feels your request is genuine.
Please be careful in future. Preservation of Income Tax records for at least SEVEN years is a must for every assessee even if assessment is over.
Tracked by: 0 Boarder
You are supposed to retain the records of income for assessment year 2007-2008 (equal to financial year 2006-2007) for seven years at least. At least you had to keep them till the Assessment is over. The Assessing Officer is entitled to take action as provided for in the Act if you do not furnish the information called for.
However, there is no need for panic. Please approach HDFC Securities with your previous ID and other demat particulars. They will provide you with a statement of transactions done from 2000 to 2006. Similarly, approach ICICI Securities for a record of the transactions from the date you transferred them from HDFC Sec. They too will provide a statement.
In the meantime, please, ask the Assessing Officer some time extention. The A.O. is likely to grant your request if he feels your request is genuine.
Please be careful in future. Preservation of Income Tax records for at least SEVEN years is a must for every assessee even if assessment is over....
In reply to:
OLD RECORDS NOT RETAINED
Posted by :
waryabs
I have not retained old records in respect of shares and MFs. I have received the notice from IT Authorities under Sec 143 (2).
For acquisition, some examples of non availability of records are:-
Bonus issue of Satyam computers in 1999, bonus issue of Varun Shipping in 2004, purchase of Rolta from secondary market in 1993. NFO (then known as public issue) of Mastergain and Mastergrowth in 1992-93.
Also have not retained the retained the letters received for redemption of the a/m MFs.
I had dematted the shares some time in 2000 with HDFC, transferred them to ICICI in Feb 2006, sold/redeemed in end 2006.
What is the position, as per Act/ rules? And how should I go about it.
Tracked by: 0 Boarder
I have not retained old records in respect of shares and MFs. I have received the notice from IT Authorities under Sec 143 (2).
For acquisition, some examples of non availability of records are:-
Bonus issue of Satyam computers in 1999, bonus issue of Varun Shipping in 2004, purchase of Rolta from secondary market in 1993. NFO (then known as public issue) of Mastergain and Mastergrowth in 1992-93.
Also have not retained the retained the letters received for redemption of the a/m MFs.
I had dematted the shares some time in 2000 with HDFC, transferred them to ICICI in Feb 2006, sold/redeemed in end 2006.
What is the position, as per Act/ rules? And how should I go about it.
...
Tracked by: 0 Boarder
Can u give me some insight into tax exemption on interest on higher education? If a person is repaying this loan over a few years, how is the tax exemption calculated?...
Tracked by: 0 Boarder
A cash gift give by a Resident Indian to his wife taxable either to him or his wife india?...
Tracked by: 0 Boarder
But i am a Resident Indian and working in an indian company. Already the bonus received is taxed even then giving gift to my wife will be taxed to my wife or to me?...
In reply to:
Giving cash gifts? Taxman is watching
Posted by : MMB Messenger
The tax authorities require the donee to substantiate and prove the genuineness of the gift, generally in case of gifts of large amounts, especially where the donor was a non-resident abroad.
Tracked by: 0 Boarder
The tax authorities require the donee to substantiate and prove the genuineness of the gift, generally in case of gifts of large amounts, especially where the donor was a non-resident abroad....
Tracked by: 0 Boarder
Realty investors play equity card to save tax-----------------MUMBAI: The general economic slowdown has impacted the realty sector, but smart property investors, who raked in the moolah when the going was g
ood, made use of the equity markets to reduce the tax they paid on those gains.
According to tax consultants, people who derive income from other sources, say a salaried employee, can and have in the past offset derivatives losses against short-term capital gains made in property transactions to reduce tax incidence on property gains. Gains from property are deemed short-term if they are held for less than three years.
Once a derivatives loss is offset against the gain, the balance short-term capital gain is clubbed with the salary income and taxed at the normal rate.
Tax experts like Sameer Gupta, director (financial services) Ernst & Young, point out that in the context of shares, Central Board of Direct Taxes (CBDT) issued a circular in June 2007 laying down the tests for distinction between shares held as stock in trade vis-a-vis those held as investment.
Some of these tests include the scale and frequency of the transactions, whether owned funds or borrowed funds were utilised for the transactions, the accounting treatment, the motive behind entering into the transactions, etc. The tests are indicative and not decisive, and need to be examined on a case to case basis, including their applicability to futures transactions, they add.
“It may be argued that a gain or loss arising from an exchange-traded futures transaction (NSE/BSE F&O) is in the nature of a short-term capital gain or loss as a person buying or selling a futures contract is creating a right or interest (in buying/selling a specific number of shares on a net settlement basis) and that when this right/interest is transferred by way of squaring off the transaction, there is a capital gain or a loss,” said E&Y’s Gupta.
Other tax experts buttress this argument by pointing out that a capital asset in the Income Tax (IT) Act means property of any kind held by an assessee, whether or not connected with his business or profession.
“Under Sec 2 (47) of the IT Act, a transfer in relation to a capital asset is defined as including the sale, exchange or relinquishment of the asset or extinguishment of any right therein or the compulsory acquisition thereof under any law. The word property used in Sec 2 (14) of the IT Act is a word of the widest amplitude and the definition has re-emphasised this by the use of words “of any kind”.
Thus any right which can be called property will be included in the definition of capital asset,” said Tata Sons senior vice-president, finance FN Subedar, drawing attention to a Bombay HC decision in Tata Services versus Commissioner of IT case of 1979. The implication is that a derivatives contract entered into, and not held as stock in trade, is a capital asset and that when the futures contract is settled, the accrued gain or loss from the settlement of the contract is a capital gain or loss, he added.
Interestingly, while losses in derivatives can be genuine, as is likely to be the case over the past nine months which has seen the Sensex declining by 38%, investors can also buy losses in a structured deal with brokers in order to set off the derivatives loss against the short-term capital gain arising on sale of immovable property in the same financial year.
Share brokers say this, though illegal, is not an unknown market practice. They are also quick to point out that structured deals wherein one party buys a loss while the other books a gain is restricted to the “unscrupulous” variety of brokers and is not prevalent among reputed and big institutional and retail brokers.
Explaining the modus operandi of such transactions, a broker said this practice was prevalent in the case of Nifty futures. Say, investor A wants to buy a loss and investor B wants to book a profit. The broker punches in a buy and sell order respectively on two different terminals using A’s client code for both the transactions (buy and sell).
Depending on how the index moves, the transaction can be squared off on the same day and the client code changed when the transaction is reversed. For instance, if investor A has bought and the Nifty futures move down, the broker changes the client code for the sell transaction by replacing A’s client code with B's code.
At the end of the transactions, the broker is paid a commission by both parties to the deal.
Property developers like Orbit Corporation managing director Pujit Aggarwal say realty investors could make good profits even before construction is complete.
For example, an investor gives a downpayment of Rs 10 lakh for a one crore-worth property, construction of which will be complete in two years.
However, if the valuation of the property changes in six months to Rs 1.2 crore, the investor could sell it and make a cool profit of Rs 20 lakh on an investment of Rs 10 lakh. Mr Aggarwal said “This mostly happens when realty market is on a high.
ET...........
Tracked by: 0 Boarder
dear vikramruparelia, first of all plz. read ur loan agreement & check is there any condition that may prompt bank to deny accepting part or full prepay. If u r sure that there is no such condition in the laon agreement, write an application to the bank, regarding ur wish to part/full prepay (as the case may be) & ask it to resolve ur matter. While filing ur application to the bank, have a receipt of ur application from bank. Plz. wait for next 1 month with a calm mind. Don\\`t get agitated if after one month the bank is not responding to ur application.
Approach the banking ombudsman of ur state, with all the details of ur case. Within a month or so, the Banking ombudsman \\`ll give its decision. If u r satisfied with it, ok. Otherwise another option is to transfer ur loan from Kotak.
Thanks
Ashal...
In reply to:
Housing loan prepayment
Posted by : vikramruparelia
Hi,
I\\`ve a home-loan from kotak bank. currently they are denying to take any prepayment, but there is no such conditions mentioned in the agreement. if I want to go and complain against bank, how can I go ahead? Or what other options are there currently?
Thanks,
Vikram
Tracked by: 0 Boarder
Hi,
I\\`ve a home-loan from kotak bank. currently they are denying to take any prepayment, but there is no such conditions mentioned in the agreement. if I want to go and complain against bank, how can I go ahead? Or what other options are there currently?
Thanks,
Vikram...
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