TMI Short Notes

TMI Short Notes on various issues

351. Is PANCARD is required for time deposit exceed a time of ₹ 5 lakhs?

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352. What is the Basic limit of PANCARD for sale purchase of immovable property?

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353. Is Permission is Required For Filing Of Revised Return?

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354. How Much Time Revised Return Can Be Revised?

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355. Can Revised Return Substitute Original Return?

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356. Is It Possible To File Auditor Report With Revised Return?

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357. Whether Assessment Made Under Section 143(1) Would Be Considered as Assessment For Revised Return?

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358. X Ltd., closely held company issues 1,000 shares to Mr. A (resident) whose face value is 10, issue price is 40 and fair market value is 42. What is the taxability of X Ltd.? Would your answer be different if the fair market value is 31 instead of 42?

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359. X Ltd., closely held company receives shares of A Ltd. (a listed public company) for 10,000 whose fair market value is 5,00,000. What is the taxability of X Ltd.?

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360. Example: 3) X gets by way of gift a plot of land in Pune from a partnership firm. The partnership firm has only two partners– father of X and Mrs. X. The stamp duty value of the plot of land is 19,00,000.

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361. Example: 2) X gets a gift of 43,000 from C, who is cousin of his father and he also gets a gift of 20,000 from D, who is elder brother of his grandfather.

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362. Example: 1) X purchases a house property situated in Nagpur from A on 31st March, 2013. The purchase price is 28,00,000. However, the stamp duty value is 45,00,000. Would your answer be the same if X purchased the above property on 1st April, 2013?

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363. Example:- Loan Taken on 01-05-2006 of ₹ 5,00,000. Construction ends on 07-09-2012. Rate of interest is 1%. Calculate interest for pre-acquisition period?

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364. Example: 4) The details of House property are as follows: Municipal value: 80,000, Fair rent: 78,000, Standard Rent: 85,000, Annual rent: 72,000, Property remains vacant for 3 months and loss due to vacancy: 18,000. What is the Gross Annual value?

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365. Example: 3) The details of House property are as follows: Municipal value: 60,000, Fair rent: 65,000, Standard Rent: 63,000, Annual rent: 72,000, Property remains vacant for 5 months and loss due to vacancy: 30,000. What is the Gross Annual value?

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366. Example: 1)The details of House property are as follows: Municipal value: 60,000, Fair rent: 68,000, Standard Rent: 62,000, Annual rent: 66,000, Unrealised Rent: 6,000. What is the Gross Annual value?

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367. Example: 2) The details of House property are as follows: Municipal value: 60,000, Fair rent: 68,000, Standard Rent: 62,000, Annual rent: 66,000, Unrealised Rent: 2,000. What is the Gross Annual value?

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368. What does building or land appurtenant includes?

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369. Mr. Ram annually earns ₹ 3,00,000 (after all deductions) and pays an annual rent of ₹ 1,50,000.

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370. Deduction if donation deducted from Salary and donation receipt certificate is on the name of employer?

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371. Documentation required for claiming deduction U/s. 80G?

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372. Whether donations made to foreign trusts qualify for deduction under this section?

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373. What are the specified diseases and ailments for the purpose of deduction under section 80DDB?

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374. I have a handicapped dependent who is my cousin ( Daughter of my mother’s sister). She is completely dependent on me and every month I spend 10,000. She is suffering from 85 % Blindness and mental problem. Whether I can claim tax benefit under 80DD?

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375. Mr. X is a pensioner and his pension is less than his son’s salary. His daughter is a disabled dependent with 85% disability. She is dependent on his brother (Mr. X’s son). Can his son get rebate under section 80DD? If Assessing Officer says that Mr. X is getting pension; so his son cannot claim deduction. Is it true?

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376. What is considered as disability and Severe Disability?

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377. Who can be your disabled dependent?

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378. Can somebody having invested the amount from income exempt from tax or by taking loan, claim deduction u/s 80D?

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379. If office deducts salary for medical insurance for employee and his family, whether the employee can claim deduction u/s 80D?

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380. Part contribution ?

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381. An individual assessee pays (through any mode other than cash) during the previous year medical insurance premium, out of his taxable income, as under: a. 12,000/- to keep in force an insurance policy on his health and on the health of his wife and dependent children; b. 17,000/- to keep in force an insurance policy on the health of his parents.

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382. Mr A, new retail investor has invested in listed equity share/units of equity oriented fund of Rajiv Gandhi Equity Savings Scheme. Calculate the amount of deduction u/s 80CCG for the following years.

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383. X deposit 1,10,000 in PPF & made a contribution of 410,000 to annuity policy of LIC (eligible for deduction u/s 80CCC).

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384. X deposit 41,000 in PPF & made a contribution of 1,10,000 to annuity policy of LIC (eligible for deduction u/s 80CCC).

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385. Suppose Mr. has paid premium of 25,000 for policy A taken on 30th June 2011 (sum assured 2,00,000) and 12,000 for policy B taken on 1st August 2013 (sum assured 1,00,000). Calculate the amount of deduction Mr. X can claim u/s 80C.

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386. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,60,000 can we both claim deduction?

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387. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

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388. What are the inclusions and exclusions in Tuition Fees?

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389. Example illustrating the Rule of Residence for an Individual for the Assessment year 2015-16

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390. Example:-During the previous year ending 31st March, 2013, X, a salaried employee received ₹ 10,67,000 as basic salary and ₹ 20,000 as arrears of bonus of the financial year 1992-93. During the previous year 1992-93, X has received ₹ 50,000 as salary. X deposits ₹ 1,500 (during 1992-93) and ₹ 10,000 (during 2012-13) in PPF.

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391. Example:-The employer sells the following assets to the employees on 1st January 2015. Car to Z for 2,10,000 (Cost: 6,96,000) Computer to A for 24,270 (Cost: 1,17,000) Fridge to B for 1,000 (Cost: 40,000) All assets were purchased and put to use on 15th May 2012

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392. Example:-. On 15th October 2014, the company gives its music system to Y for domestic use. Ownership is not transferred. Cost of the music system (in 2003) to the employer is ₹ 15,000

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393. Example:-X owns car (1400cc). He uses it partly for official purposes and partly for private purposes. During the previous year 2014-15, he incurs a sum of ₹ 40,000 on running and maintenance of car. Besides, he has engaged a driver (salary ₹ 24,000). The employer reimburses the entire expenditure of ₹ 64,000. Log book of the car is not maintained.

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394. Example:-X is employed by a company. He has been provided a car (1200cc) owned by employer, cost of the car is ₹ 4,26,000. The expenditure incurred by the company on maintenance of the car are – petrol: ₹ 46,000, driver: ₹ 36,000 and maintenance: ₹ 10,000. The car can be used by X partly for official purposes partly for personal purposes. A sum of ₹ 12,000 is recovered from X.

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395. Example:- X, a director-employee of a private sector company based at Indore (population: 24Lakhs), draws ₹ 90,000 p.m. as basic salary. Other allowances and benefits attached to his office are: DA (forming part of Salary): 20% of basic salary; bonus: 30% of basic salary; commission: 800 p.m. and rent free house (lease rent paid by the employer: ₹ 40,000 p.m.) Determine the value of perquisite.

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396. Example:-X, an employee of ABC Ltd., posted at Ajmer (population: 18 Lakh), draws ₹ 3,00,000 as basic salary, ₹ 10,000 as DA (forming part of salary) and ₹ 5,000 as commission. Besides, the company provides a rent-free accommodation in Ajmer. The house is owned by the company. Fair rent of the accommodation is ₹ 50,000 p.a. Determine the taxable value of the perquisite.

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397. Example:-X has received following amount during the previous year. Basic Salary 7,000 p.m.; Dearness Allowance (D.A) – 1,000 p.m.;House Rent Allowance (H.R.A.) 3,000 p.m. The Actual Rent Paid is 3,000 p.m. Calculate exemption of HRA u/s 10(13A)

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398. Example:-Mr. X received voluntary retirement compensation of ₹ 7,00,000 after 30 years 4 months of service. He still has 6 years of service left. At the time of voluntary retirement, he was drawing basic salary ₹ 20,000 p.m.; Dearness allowance (which forms part of pay) ₹ 5000 p.m. Compute his taxable VRS.

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399. Example:-Mr. X received retrenchment compensation of ₹ 10,00,000 after 30 years 4 months of service. At the time of retrenchment, he was drawing basic salary ₹ 20,000 p.m.; dearness allowance ₹ 5,000 p.m. Compute his taxable retrenchment compensation.

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400. Example:-Mr. X retired from ABC Ltd. on 11th March 2014 after serving for 30 years and 11 months and the employer has paid him leave salary of ₹ 5,00,000. At the retirement, he was getting basic pay of ₹ 22,000. Further he was getting dearness allowance of ₹ 4,000 and 50% of the DA forms the part of salary for retirement benefits. The employee was entitled for 3 months leave for every year of service, but the employee has availed 7 months leave throughout the service and has encashed 4 months leave. Compute leave salary exemption u/s 10(10AA) for the AY 2014-15.

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