TMI Short Notes

TMI Short Notes on various issues

1201. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

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1202. What are the inclusions and exclusions in Tuition Fees?

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1203. Example illustrating the Rule of Residence for an Individual for the Assessment year 2015-16

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1204. 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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1205. 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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1206. 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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1207. 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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1208. 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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1209. 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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1210. 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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1211. 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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1212. 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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1213. 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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1214. 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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1215. Example:-X retires from B Ltd. on 31st July, 2014. He gets pension of ₹ 1,000 per month up to 31st December, 2014. W.e.f 1st January, 2015 he gets 60% of pension commuted for ₹ 1,70,000. Does it make any difference if he also receives gratuity of ₹ 3,000 at the time of retirement?

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1216. Example:-An employee of X Ltd. retires on 10th March, 2015 after service of 26 years and receives ₹ 6,50,000 as gratuity. X Ltd. is not covered by the Payment of Gratuity Act, 1972). If Salary drawn by him during 1st May 2014 and 28th February 2015 is as follows: 1st May 2014 to 31th December 2014 Rs. 26,000 p.m. 1st January 2015 to 28th February 2015 Rs. 26,500 p.m. Besides, he receives ₹ 400 p.m. as dearness allowance (forming part of salary for the computation of retirement benefits). He is also entitled to 6% commission on sales achieved by him (during 1st May 2014 and 28th February 2015, turnover achieved by the employee is ₹ 25,77,860). Is the entire amount of gratuity exempt from tax?

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1217. Example:-X, an employee of A Ltd., receives ₹ 62,000 as gratuity (he is covered under the Payment of Gratuity Act, 1972). He retires on 31st January, 2015 after service of 29 years and 8 months. At the time of retirement monthly salary of X was ₹ 3,100. Is the entire amount of gratuity exempt from tax?

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1218. Example:- X, an employee of Central Govt., receives 9,20,000 as gratuity at the time of his retirement on 31st December, 2014. Is gratuity fully exempt from tax? Does it makes any difference if he joins a company in the private sector on 11th January, 2015?

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1219. Applicability of a Circular issued by the Board - Prospective or Retrospective - Demand of duty prior to issuance of Circular

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1220. Whether there is any provision regarding refund of application fee if applicant withdraw the application?

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1221. Whether Advance Ruling Authority can reconsider or review its own order after giving final answer on the matter applied for?

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1222. Whether Advance Ruling application can be filed for a question related to Circular issued by the Central Board of Excise & Custom? Is there any difference between Circulars and Notifications issued by the department?

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1223. Whether a Government company can apply for a advance ruling ? if yes, whether subsidiary of a government company will be treated as a government company who can apply for a advance ruling ?

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1224. Whether appeal can be filed against the order of Advance Ruling Authority ? If no, whether there is any other remedy available to file a objection against the order?

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1225. Whether an appeal can be filed by the person on an entirely different ground, in whose favour decision has been made? Whether if decision of Commissioner appeal is in favour of department, it can be challenged by the department?

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1226. Whether appeal filed by the person other than aggrieved party is maintainable?

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1227. Whether an appeal can be restored by filing fresh appeal which was earlier rejected on some grounds?

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1228. Whether proceedings can be reopened on the basis of a favourable decision in another case?

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1229. Whether a wrong decision by jurisdictional court is binding on the parties in absence of any appeal by either parties?

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1230. Whether an order becomes a final order if no appeal has been filed against it?

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1231. Whether right to appeal is a inherent right? Whether it is necessary that right of appeal must be exist in a statute?

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1232. What is the meaning of 'Reason to Believe' in context to search & seizure provisions?

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1233. Whether in case, composite price (inclusive of service tax) is shown in invoice and no separate duty indicated , will be treated as unjust enrichment i.e. burden of service tax liability has been transferred?

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1234. Whether Doctrine of unjust enrichment is applicable on finalisation of provisional assessments?

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1235. Whether Doctrine of unjust enrichment is applicable on duty paid under protest?

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1236. Whether data in "CD" can be a admissible evidence for refund claim under Section 11B? Whether data in CD can be used to prove that the incidence of service tax liability has not been transferred to other party i.e. there is no enjust enrichment?

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1237. Whether limitation of refund filing is applicable on the cases where amount paid to the department are not in nature of service tax? Whether limitation of refund filing is applicable on deposits made with the department?

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1238. Whether deposit of service tax before rendering services will be covered under limitation of refund provisions i.e. refund application should be filed with in 1 year of payment of service tax?

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1239. Whether Appellate authority has empowered to increase the penalty? Whether Appellate authority can impose a fresh penalty?

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1240. Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit prescribed by invoking section 80 of the Finance Act, 1994?

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1241. Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescribed by the section?

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1242. Whether Service tax paid by back calculations i.e. service tax separately not charged will be covered under the scope of Sec.73A? Whether unjust enrichment provision will be applicable on such service tax payment?

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1243. Whether assessee is liable to pay collected service tax as per provision of Sec.73A even if his turnover is below the taxable turnover i.e. if assessee is availing small service provider exemption?

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1244. Whether ignorance of law can be a factor for not to revoke extended period of limitation?

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1245. In what circumstances extended period of limitation is not enforceable? Whether SCN can be issued for period beyond 18 months even if assessee has bona fide belief regarding service tax liability?

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1246. Whether show cause notice related to period beyond 18 months or 5 years as the case may be, is valid in law ?

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1247. Whether it is mandatory to mention specific head / sub head of services in SCN in which demand of service tax has been raised?

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1248. Whether issuance of SCN under section 73 is mandatory to fix the liability of the assessee? Whether demand of service tax and interest is not sustainable in absence of SCN?

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1249. Whether it is necessary to provide opportunity of being heard before passing order of finalisation of provisional assessment?

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1250. Whether appeal can be filed against the provisional assessment?

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