Mr. kalpesh borrowed a sum of rs. 30 lakhs from the national housing bank towards purchase of a residential flat. the loan amount was disbursed directly to the flat promoter by the bank. though the constuction was completed in may, 2008,repayments towards principal and interest had been made during the year ended 31.3.2008.

in the light of the above facts, state

a) whether MR. kaplesh can claim deduction under section 24 in respect of interest for the assesesment year 2008-09;

b) whether deduction under section 80c can be claimed for the above assessement year, even though the coustruction was completed only after the closure of the year.
pls solve this querry as a student. becuase i want a systematic ANS.

Whether Interest U/s 234B is leviable on Income under the head STCG. To make it clear, if in case of a salaried assessee, TDS has been deducted, he has other than salary ,bank interest and STCG. The tax on bank interest exceeds Rs 5000 , hence advance tax was to be deposited, but it has not been, so will interest u/s 234B will be levied after considering the tax on STCG or no, as in case of sec 234C interest is not levied if the shortfall in advance tax is due to capital gains.

a professional firm took joint life insurance policy on the life of partners and claiming the premium as deduction each
year.
on the death of one partner the firm got the premium amount.
whether the firm can claim exemption on the full amount received ya only for the amount that exceeds the amount already claimed by the firm?

Whether Extension Fee (Penalty for Non-Construction of house) paid to Housing Developement Authority is a part of Cost of Aquisition or not ??????? Plz give any case reference if possible

Taxability on extra area alloted to society member by Co Op Hsg society or cash received in lieu of that. Pls provide any case law if any

on refrizerator, A/C machinery which are used for office purpose(in CA Firm) at what rate we can claim Depreciation.These can be considered as plant and machiney or not?

author : vishal
Posted On : 8/26/2008 2:24:47 PM
As per CBDT Circular No tds has to be deducted on service tax on rent paid. because service tax is not a income of the person who is receiving rent.

If this is the case then how the tds can be recovered on service tax charged on contract, Professional fees, commission etc., In these case also the person is acting as agent of government.

The person is collecting service tax from the clients and paying to the government just like rent. Service tax is not a income of the person.

I think this decision should be challege in court and there should rule that tds should not be charged on service tax of all categories.





Expert : CA Hemant T Dewani
Posted On : 8/26/2008 3:07:30 PM
amendment is made for rent only & not other services


Whatever May Be The Expenditure If Deduct TDS On Amount Excluding Service Tax There is No Harm.
It is Absolutely Correct And Generally It is Done This Way.

Hello,

I just want to know what is the due date for deposit of TDS? e.g If I deduct TDS on 30th April 2008 and depsoit the same on 07th May 2008 through cheque which got cleared on 10th May 2008. Am I defaulter in deposit of TDS or not.

21/8/2008 Purchase of Goods 51000/-

22/8 Cash Payment 32000/-

24/8 Cash Payment 19000/-


Whether 32000 will Be Disallowed or 51000/- ?

Plz Answer With Relevant Provisions Of Income Tax Act.

(i) if the employee get cash for his EL when he resign from the pvt. company, will this amount is taxable

(ii) in case if he wants to take EL before resign............can he take EL or not........what he can do if the company refuse to give EL.........is there if any provision that he can go for court on this behalf ..........if so in which court.....what is the provision,

thanks in Advance

with regards,

Amrish