ONE OF MY DIRECTORS HAD FILED(WOMAN) HAD FILED HER RETURN FOR THE ASSESMENT YEAR 2006-07. Declaring her income as Rs.2,28,000.00 which also included capital gains(indexing) of Rs.83,000.00 . The tax was paid by her in normal rates as applicable to an individual.

During the assesment the income was arrived at Rs.2,91,971.00. Since special rates was imposed on capital gain,she was required to pay only Rs.7,600.00 as additional tax which was duly paid.

In the penalty proceedings however, the ITO HAS IMPOSED PENALTY OF RS.21,522.00 ON AN ADDITION OF RS.63841.00 (100% OF TAXSOUGHT TO BE EVADED ON THE ADDITION).
MY QUERY IS WHEN THE ADDITIONAL TAX ITSELF WAS RS.7,600.00 ON THE COMPLETION OF ASSESMENT SHOULD THE PENALTY ALSO NOT BE IMPOSED ON THIS TAX ONLY?

An assessee has received his Form no 16 for TDS for contract after 1 year can he claim deduction? And if he receives this form after 2 year can he claim the deduction? What is the validity of this form?

one of my client is servicing in china and head office of his employer is in dubai,he is getting salary from dubai by cheque sent to india and he get it deposited into an NRE A/c he is non resident last year, the question is whether his income will be chargeable to tax on the basis that his first receipt in india, please explain me by giving sec. reference, regards CA HIREN SHETH

We are 3 brothers & 2 sisters. Our father purchased a ground for Rs.2500 and constructed house in 1977 and in 1995 additionally constructed a floor for Rs. 200000/-. He died in the year 1997 and we demolished the house and constructed 5 apartments in the year 2008 (October). Out of 5, we retained 3 flats for three brothers and sold the two flats to outsiders and utilised the consideration of Rs.2800000/- towards construction of all the 5 flats. Being allotted a small size flat I was compensated in cash to the tune of Rs.300000/-. Pl clarify what
is the capital gain tax on my part and if anything has to be paid, what is the last date for payment. - g.ramesh (rameshrohit65@gmail.com)

Whether the charges payable for Translation charges (english to german)payable outside India, will fall under "Technical Services" for the purpose of TDS u/s 195 and if yes, what will be the tds rate for deduction ??

If outstanding TDS has not been deposited till last date of the financial year 2008-2009 (Now the last date 31st May 2009) then what is the option to pay this outstanding TDS amount to the account of Income Tax Department and how can avoid the disallow of expenses?

Incase of T.D.S. has been deposited by the assessee inleau of E payment , whether the assessee will be deemed to default in payment of t.d.s or he will get the credit of the same. what is the remady available to the Act. Kindly advise .
A.K. Dokania

Due to oversightness in TDS payment double payment has made for TDS on rent in last financial year . During F.Y. 2008-09 payment has already made for TDS on 7th March 2009 for February month, but the same payment has again made on 7th May 2009.

Kindly suggest how we can adjust the same in our books of accounts and claim refund for excess payment of TDS.

Is it necessary that the new residential property bought should be in India? If it is purchased in Foreign Country,Exemption allowable or not?

All the other conditions fulfilled.

Please Reply. Advance Thanks..

Manikandan.A.V

Suppose a person books a house,which is under construction and the possession will be given in DEC. 2010. There is an agreement to sell. (Down payment for booking being Rs 4 lacs).

Now, till DEC. 2010, the person stays in a flat from 1st April 2009 to 30th Nov.2010, which is hired by him (rent being Rs.10,000 /- p.m.) and the company pays Rs.12,000/-. p.m. as HRA.

Loan from bank (Rs 24 lacs) is taken on 1st Oct. 2009 @ 10% p.a.

1) How the Total Income will be computed for A.Ys. 09-10 and 10-11 ? (Assume salary is Rs. 35,000/- p.m.).

2) Also, if in the case of the flat taken on rent, the deposit amount of Rs.30,000/- and rent is paid in cash, can the benefit be claimed in IT (is it sufficient to show the agreement) ?