Say I am a resident & ordinary resident of India. I have stayed in the Uk for 4-5 months. What shall be my taxability status in the following incomes :
1. Salary earned from a employer of UK while serving in the UK only.
2. Interest on any savings in the UK.

Following are the abstracts of the DTAA with UK. Can someone pls help me read the same to determine my taxability in the above two incomes.

I] Dependent personal services -
1. Subject to the provisions of Article 17 (Directors’ fees), 18 (Artistes and athletes), 19 (Governmental remuneration and pensions), 20 (Pensions and annuities), 21 (Students and trainees) and 22 (Teachers) of this Convention, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1 of this Article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall not be taxed in that other State if :

(a) he is present in the other State for a period or periods not exceeding in the aggregate 183 days during the relevant fiscal year;

(b) the remuneration is paid by, or on behalf of, an employer who is not resident of that other State; and

(c) the remuneration is not deductible in computing the profits of an enterprise chargeable to tax in that other State.

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State of which the person deriving the profits from the operation of the ship or aircraft is a resident.

II] Interest - 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises and accordingly to the law of that State, provided that where the resident of the other Contracting State is the beneficial owner of the interest the tax so charged shall not exceed 15 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2 of this Article:

(a) where the interest is paid to a bank carrying on a bona fide banking business which is a resident of the other Contracting State and is the beneficial owner of the interest, the tax charged in the Contracting State in which the interest arises shall not exceed 10 percent of the gross amount of the interest;

(b) where the interest is paid to the Government of one of the Contracting States or a political sub-division or local authority of that State or the Reserve Bank of India, it shall not be subject to tax by the State in which it arises.

4. Notwithstanding the provisions of Article 7 of this Convention and of paragraphs 2 and 3 of this Article :

(a) interest arising in India which is paid to any beneficially owned by a resident of the United Kingdom shall be exempt from tax in India if it is paid in respect of a loan made, guaranteed or insured, or any other debt-claim or credit guaranteed or insured by the United Kingdom Export Credits Guarantee Department; and

(b) interest arising in the United Kingdom which is paid to and beneficially owned by a resident of India shall be exempt from tax in the United Kingdom if it is paid in respect of a loan made, guaranteed or insured, or any other debt-claim or credit guaranteed or insured by the Export Credits and Guarantee Corporation of India and/or Export-Import Bank of India.

5. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures but, subject to the provisions of paragraph 9 of this Article, shall not include any item which is treated as a distribution under the provisions of Article 11 (Dividends) of this Convention.

6. The provisions of paragraphs 1, 2 and 3(a) of this Article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 (Business profits) or Article 15 (Independent personal services) of this Convention, as the case may be shall apply.

7. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by that permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

8. Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid exceeds for whatever reason the amount which would have been paid in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention.

9. Any provision in the laws of either Contracting State relating only to interest paid a non-resident company shall not operate so as to require such interest paid to a company which is a resident of the other Contracting State to be treated as a distribution or dividend by the company paying such interest or to be left out of account as a deduction in computing the taxable profits of the company paying the interest. The preceding sentence shall not apply to interest paid to a company which is a resident of one of the Contracting State in which more than 50 per cent of the voting power is controlled, directly or indirectly, by a person or persons who are residents of the other Contracting State.

10. The relief from tax provided for in paragraph 2 of this Article shall not apply if the beneficial owner of the interest :

(a) is exempt from tax on such income in the Contracting State of which he is a resident ; and

(b) sells or makes a contract to sell the holding from which such interest is derived within three months of the date such beneficial owner acquired such holding.

11. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt-claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment.

Sir,

The assessee has opted for the PF Registration and has not received the PF No. for certain months. When no. has been allotted, assessee has made the outstanding payment.

In view of above circumstances, whether the amount of Employees' Contribution to PF, paid lately by the assessee should be disallowed or Not ? Kindly give the reference.

Thanking you in advance !

Respected Sir
if an assessee has only salary income,
and current years business loss excluding depreciaion is Rs. 90,000 and current years depreciation is Rs. 60,000/-.

will the assessee able to set off current years depreciation against the salary income???

Sir, I came to know that " Since Sec 32 (2) is silent about the set off of current year's depreciation against income under any other head, and no court decisions are available in that regard,
THE BENEFIT OF SET OFF IS GIVEN TO THE ASSESSEE IN THE ABOVE QUESTION.."

Dear all

i'm a CA Fresher! I've a doubt on the aforesaid subject! I know it seems useless to have a doubt on it but I've as there's a conceptual mismatch between our CA Fraternity itself.

The case is - Mr.X pays Rs.2 lacs LIP from his bank a/c on policies in his wife Mrs.X's name! Now the question that arises is - WHO CAN AVAIL THE DEDUCTION?

Text of the Section 80-C reads as "ANY PAYMENT MADE BY AN INDIVIDUAL"

So in this case, me & my CA Fresher friends are of the opinion that only Mr.X can claim the deduction as HE has paid the sum & not Mrs.X!

HOWEVER, MY EMPLOYER CA IS OF THE OPINION THAT EITHER OF THE TWO SPOUSE CAN CLAIM DEDUCTION! HE FURTHER AFFIRMED THAT [u]IT IS NOT NECESSARY THAT PAYMENT OF LIP BE MADE BY ANY OF THE SPOUSE i.e. EVEN A THIRD PARTY CAN PAY LIP OR DEPOSIT SUM IN PPF A/C & DEDUCTION CAN BE CLAIMED BY MR.X OR MRS.X.[/u]

I find his opinion contrary to the text of the section as the principal of payment based deduction is violated!

Kindly advise me on the same as in what should be done in this case!

regards

Parag

If we make payment to NON residence Not Holding Pan and Grossup of TDS is there then i got fallowing Way by expert Please Comment on it
If Payment Need to Make is RS 100000
Tds under Income Tax Act/DTAA-10%

Grossup Amount=100000*100/90=111111.11
TDS will be 20%=111111.11*20%=22222.22
Now what should Book as expencess
a)Rs 111111.11 or
b)100000+22222.22=122222.22

Insurance has deducted TDS from commission for the past 4 years. I have not filed any ITR

Please guide me how to get the Refund, from income tax, which ITR From i have to file, to each year i have to file ITR or all 4years TDS form should be enclosed in the current year ITR FROMS.

Please advise.

1. in 80U how we will get %age disability

2. in 80QQB and 80RRB if royaty income is foreign income and assessee is forget to bring that money in home country so will it be taken as deduction in these sections

3. in workmen compasation if entity has alrady more then 100 employees and recruits another employee so will entity get deduction.

can you please tell me that if someone who had been running a computer institute for last 3 years has now affiliated the institute with a registered soceity under co opreative soceity act,1912.now shall he file the current year ITR in the name of that computer institute as he done previously or can he file the ITR in the name of that soceity under which the computer institute is running now. Please tell the answer giving reference to the concerned section(s) in the Indian Income tax Act,1960.

One of Our client who is a distributor, purchase Milk from manufacturer Rs.200000/-through cash.whehther this amount can be allowed or not.(whether exception rule 6DD applicable in this case as a Dairy prduct) pls give me a clarification

one assessee who is an individual has two separate business 1st one being retail shop where his turnover is 37 lakhs and 2nd one being manufacturing concern where his turnover is 27 lakhs....
AS per the provisions of sec 44AB when the turnover in business exceeds 40 lakhs tax audit attracts....
As far as i see, the business is attracted to the provisions of sec 44AB and not the assesse. Based on this view the following are my querries....
Is the said assesse is liable to get his books of accounts audited under 44AB, as he is having 2 separate business which are not related to one another and individually turnover of each business is less than 40 lakhs?
Can the assesse go for the provisions of section 44AF for retail business, and show income without 44AB audit for the manufacturing business?
Please mention sitations if any....