SIR, PLZ ANS THE FOLLOWING QUERIES :

1. IF A PERSON IS 'PART TIME' ENGAGED IN INVESTING IN OPTION DERIVATIVE THEN INCOME,IF ANY,IS TAXABLE UNDER PGBP OR CG

2.IF PGBP, THEN IS IT SPECULATION INCOME OR NORMAL BUSINESS INCOME

3. SHALL HE HAVE TO MAINTAIN BOOKS OF A/C IF INCOME EXCEEDS 1,20,000 /-( WHAT IF SPECULATION INCOME? )

4.WHAT TYPE OF BOOKS ARE REQUIRED TO MAINTAIN AND HOW IT IS RECORDED IN BOOKS

5.FOR SEC. 44AB , LIMIT OF 40 LAKH IS TAKEN FOR CONTARCT VALUE OR GAINS ONLY BECAUSE BUYER OF CALL/PUT OPTION HAS TO PAY PREMIUM AND ON SETTLEMENT ONLY DIFFENCE IN PRICE IS SETTLED.( SEC 44AB APPLICABLE , IF SPECULATION INCOME)

6. IF IT IS SPECULATION BUSINESS INCOME THEN AUDIT IS REQUIRED OR NOT

THANKS IN ADVANCE

Please tell me the Depreciation rates for gold and silver vessels AY 2009-10.
And also tell from where you get the rates.

Dear Sir,

We have make the cash payment for Squarred of Vehicle loan of Rs.9 Lac to Kotak Mahindra Prime Ltd.

Pls help me its allowed under income tax act or create any problem for disallowance.

Its very urgent for take necessary step.

Regards
Baljinder Singh

My client - a partnership firm - runs a tyre retreading unit. One of the partners is having a bus unit in which all tyre retreading is being done by my client. The bus unit pays monthly by cheque to my client.

Now the bus unit has been advised todeduct TDS on tyre retreading sicne it is a contract.

For my clinet, there shall be too much of TDS and then will ahve to claim refund. Money will be blocked.

Does the bus unit have to deduct TDS. Any suggestions to plan this

REgarrds

The below text is from Taxguru.com. Any one can send me the full case law in this regard? My mail id is ghanshyam.joshi@epcos.com


Central excise refund is taxable and distinct from profit derived from industrial activity
Dec 4, 2009 Income Tax Case Laws

Tax dept says Central excise refund should be taxed because it is a benefit derived from a government scheme and is distinct from profit derived from industrial activity.IN A decision that could impact companies with operations in the north-east , Jammu & Kashmir and Himachal Pradesh, a tax tribunal in Amritsar has ruled recently that such entities will be liable to pay tax on Central excise duty refunds.

The November 26 decision by the Income-tax Appellate Tribunal (ITAT), Amritsar will enable income-tax authorities to claim nearly Rs 500 crore from companies operating in these regions.

Companies, such as Balaji Alloys, Raven Bhel and Pee Ell Alloys, moved the income tax appellate tribunal (ITAT) against an income-tax department notice that asked them to cough up the tax. However, the ITAT dismissed their plea late last month. Other companies awaiting an ITAT decision on the issue include Sun Pharma, Kashmir Udyog and Avita Mobile Industries.

Central excise duty refunds are part of a government package to promote industrial development in J & K, northeast states and Himachal Pradesh. Under this scheme, central excise duty a tax on manufacturing paid by the companies is refunded to them.At the same time, these companies in the region are given exemptions from income-tax too. Section 80 IB of the Income-tax Act provides for exemptions from taxation on profits derived from industrial activity in backward areas. In Jammu & Kashmir, Section 80 IB will continue to operate till 2012. In other areas, 100 % exemption is granted for five years after the setting up of an industry and only 25% of the profit derived from industrial profit is taxed for the next five years. Thereafter the profit is taxed according to the prevalent rate.

The tribunal, in an order on November 26, accepted the argument of the I-T department that central excise duty refund is liable to be taxed, even though the companies profit is exempt from taxation under 80 IB.

The department drew a fine line between excise refund and profit generated through industrial activities in these areas. It said Central excise refund cannot be construed as profit derived from industrial activity. The refunds are in fact a benefit derived from a government scheme and distinct from profit derived from industrial activity. Therefore, refunds are not eligible for deductions under Section 80 IB of the Income-tax Act.

I am taking coaching of DT from Mr. Vinod Gupta who said that Computer is a capital asset for an individual salaried employee. I thought there must have been a case law on this.

Dear Sir,

I inherited some Agriculture Land( rural
Land-more than 8 kms away from nearest Muncipality ) from my father, who had inherited from his father ( i.e. my Grand Father ). I sold this land in Apr 2009 and deposited the sale proceeds in our HUF Acct, which we have been maintaining since last about 10 yrs.In the past all income from Agr Land was deposited in this HUF Acct and shown in IT Return every year.
The HUF Acct is assessed to I.Tax regularly & has a PAN allotted.

2. Out of total amount a 1/3 rd amount was given to each of two NRI sons, who deposited the amount in their respective NRO Accts and then invested in Bank FDs for the time being. I took 1 Lakh and deposited in my SB Acct and then invested in Bank FD u/s 80C to avail the deduction for the current yr. I am a retired Army Officer.

3. My self & both my sons are tax payees, we file our IT Returns regularly and have been allotted PAN Nos.

4. My queries are--

a. Should the entire Sale proceeds be
shown in Income Tax Return of HUF Acct
or should we show these in individual
IT returns as per the amount given to
each individual ?

b. Should the amount given to each son &
taken by me be shown as share of
Capital receipt from sale of inherited
Agri Land or Gift from HUF or Loan
from HUF ?

c. Will the interest earned on FDs( made
out of these amounts ) of my sons &
myself, be shown as individual income
or will it be clubbed with income
of HUF Acct ?

d. Please indicate relevent Sec of I.Tax
Act, wherever applicable.

5. An reply will be appreciated, to enable me to finalise Advance Tax etc.

Thanking you in adavance and with warm
regards,

Sincerely Yours,
Major Bhupal Singh, Retd.

Here the issue is :
when in the case of a director using the accomodation provided by the company as perquisites which is ultimately of his family member then how can he be the tax saver being adding of Perx came to 15%.

E.g.
A,B,C,D are Directors having Family members X,Y,Z.
now if Salary of A is 25 Lacs P.a.
and Company takes house on rent from X for A at 6 Lacs p.a.
The perquisites to be added in A's income will be 15% of his Salary. i.e. 3.75 Lacs also X wil get the Net HP income as 4.2 Lacs (6 Lacs-30% Std Ded in HP Head).

But company can save only 6 Lacs being expenditure for Directors home.

The Ultimate effect are :

Company's income decreases = 6.00 Lacs
Director,s income increases = 3.75 Lacs
X's income increases = 4.20 Lacs
-------------
Ultimately increase
in income of the Group = 1.95 Lacs
===========
So now how can legally it may be turned in to some profitability operation being all this wil take place in next months...
Is there any way one can suggest to come out of this loss of 1.95 Lacs of the Group...


Kindly think twise before replying this question.... Thanks

What is the income tax rate (Slab)?
For Individual
For Non profit seeking organization
For Corporate

A cellphone service provider engages a contractor for maintenance of its cellphone towers. During the period of this contract, the contractor engages a service engineer for a repair work to be done on one of the towers of the cellphone company. After repairing, the engineer issues a bill for Rs.21,000/- including service tax of Rs.1931/- in the name of the contractor. The contractor, in turn, submits the bill to the cellphone company and gets reimbursed. Now the questions are

1) who is liable to deduct tax at source and on whom?

2) who is entitled to take credit of input service tax?