Dear experts,
Please help me with a problem.
This has been an issue about which I haven't got any clarity since a couple of yrs. Suppose a person gifts rs. 60000 cash to his major son who further invests it on fdr. Now what wud be the tax implication.
1)Is Rs. 60000 is fully exempt in son's hand as it is a gift u/s 56 from a relative and there is no burden on father either ?

2)Is interest on fdr is taxable in son's hands? As from reading clubbing provisions I didnt find any clause explaining the treatment of transfer of funds by Father/Mother to a major child.

Please clear the issue.
Thanks.

Dear sir
As my clients have no any business since 2005-06 they not filled their return from the same date without surrender their certificate with department.
But now department issue notice to fill the return with late fees.
Hence please provide me a idea how to deal the matter nd what reply given to the department.

SIR/MADAM

i have recently passed class 12 cbse board 2013 with 89 % and i have enrolled in cma institute also i have got admission in du college but i have doubt that can i pursue cma with bcom(hons) regular college in delhi university or i have to go for correspondence option in school of opening learning du as in case that ca is not allowed with regular college due to change in university norms so i am in deep problem so it is requested to reply to my query as soon as possible

thanking you

yours faithfully

m.pande

My query is an assessee constructed building and started business but land does not belongs to him now please clarify me how such asseessee must claim building expenditure is it at a time as revenue expenditure or by capitalizing claim expenditure as depreciation
Thanks in advance
Regards,
Shivateja

1. WHETHER I.T.R FILED AFTER 31/07/2013 BUT BEFORE 05/08/2013 WILL BE CALLED I.T.R FILED U/S 139(1) OR I.T.R FILED U/S 139(4)??
2. AND IF IT WILL BE CALLED AN I.T.R FILED U/S 139(1),WHETHER I CAN FILE REVISED RETURN U/S 139(5)ALTHOUGH I HAVE FILED MY RETURN STATING RETURN FILED U/S 139(4)??

Greetings !
I want yo know where does the LIC premium & PPF postings are done - will it go to proprietor's capital account or directly to balance sheet - current assets ?
Please Help

Hi i am a CA final student and i have cleared
my first group i just want to know is there
any time limit for validation of cleared group as well like in case of exempted paper which remain valid for 3 attempts

Please think about it and answer me whether income tax rules have to be amended or not?

All amount in rupess
Let me say for an individual annual income amount from 3 sources is X,Y,Z
Let me say TDS on income 10%, X,Y,Z on T1,T2,T3.
Gross income is X+Y+Z
Taxable income will be B=X+Y+Z- tax exempted amount.
The tax on B will vary from 10 to 30%. Total Tax(TT) will be calculated accordingly.
If TT > T1+T2+T3 then one has to pay tax and if it is less one will get refund.

In the above mode of calculations T1, T2, T3 (TDS amount) are also subjected to 10 to 30% taxation.
My question is since TDS amount is already with income tax department and tax also has to be paid to the same department why should one pay tax on the already paid TDS amount.

My logic is as follows.
Initially 100% tax liability is there since no part of the income is removed as TDS.
Now if the tax is 10% and TDS is 10 %
The person will get 90% and 10% goes as tax in the form of TDS.T1
From this income a part of tax liability has come down since 10% is allotted as tax T1
Now what income should be added to Y ?
According to me since some tax liability has reduced to the extent of 10%
X-T1+Y is the income for next tax calculation .
But from Y say 10% of TDS has been allocated as T2
Tax liability on Y has come down by 10%
X-T1+Y-T2 is the tax liability for the next calculation.
If you do not agree to above argument I think the following argument will convince you
Let me say due to some gross error 100% TDS got deducted on income Z.T3=Z. This person has not received any interest at all for income Z. Now logically what is his tax liability for this income? According to me it is 0. (Z-T3 is zero)
Now as per the calculation X+Y+Z what happens to income Z in the above scenario?
According to the calculations it is 10 or 20 or 30% depending on the income slab and this person is forced to pay on an income which is nil. He will get T3 back since TDS will be more than calculated tax but not the tax levied on TDS.

According to me take Gross income X+Y+Z for calculation purposes to find the tax bracket.
From total calculated tax amount subtract not only TDS but also the inherent tax levied on TDS.

When I was studying in 7th Std., my father's peon used to come to collect the lunch dubba for my father. He used to say to my mother, government KAAT , POOT KE PAISA DEDHA HAI Aur KATTA HUWA PAISE PE BE TAX LAGATHA HAI.( It was in tamil he used to say which I have translated to hindi. Cut PANNI PAISA KDUKKARAN Cut PANNINA PAIASALEYUM TAX VANGARAN). That time I never understood what hesays, but now I feel his words are true for the following reasons.

1. Whether the income tax rule clearly says tax has to be paid monthly or yearly, if yearly then
2. Why no interest on the monthly TDS if tax has to be paid yearly ? (Whatever argument I have put forth above T1, T2 etc is valid in case of monthly deductions also. If X is monthly salary and T is TDS , for 1st month no TDS so 100 percent tax liability, for 2nd month X-T is the tax liability and so on. For calculating income tax bracket you take into account Gross Amount X and calculate the taxable income and tax. According to my contention not only TDS but inherent tax levied on the TDS amount depending on the tax slab has to be subtracted)

3. Whatever TDS is cut by the government for tax, to reduce the tax burden at the end of the financial year, can be accomplished by the employee, if the government pays the full monthly salary and the employee opens an RD ( Let me say TDS_RD). In nationalized banks the minimum monthly installment is Rs. 100 and minimum period 6 months with interest 8.4% for an RD. He can meet the tax demand at the end of the financial year and also ends up with interest on TDS which at present the government refuses to pay.

4. Since TDS has become compulsory to me it appears government is BLOCKING some part of the money towards tax as TDS, refuses to pay INTEREST on that amount and in final tax calculations levies INHERENT tax on that amount and has framed the income tax rules accordingly.

5. If a government employee takes temporary advance to buy some material, but could not complete the purchase due to some reasons (Say lack of stock) he has to return the money within a specified time and take fresh advance otherwise it will be taken as misuse of government money, the employee may get a memo and the amount will be deducted from his salary with interest.
Now the same government is misusing employee's money as TDS for the reasons cited above.

6. I agree TDS helps to bring non tax payers into taxable net, but the present rules on TDS needs MODIFICATONS so that the FINAL TAX CALCULATION is LOGICALLY CORRECT. IF the INHERENT tax levied on the TDS is removed it is as good as paying interest also and employees will not have any objection for multiple TDS deduction. To overcome the loss if any the income tax slab or rate can be modified.

what is the procedure for taking transfer after 1 year of training.as my parents are shifting from haryana to delhi for to thier business .which is more than 50 km.and my principle also allowed me to take transfer.
what documents are required to furnish as a proof.

SIR WHAT TYPE OF TRANSFER LETTER OF PARENTS NEEDED IF THEY HAVE BUSINESS

SIR I AREADY ASKED FROM ICAI DELHI ABOUT TRANSFER ON THIS PROVISION THAT MY BOSS WANT TO GIVE TRANSFER BY GIVING REASON THAT HE DIDINOT HAVE MUCH WORK IN HIS OFFICE FOR ARTICLES.
AND ON THIS THE REPLY OF THE INSTITUTE WAS THAT THEY HAVE NO PROVISION REGARDING THIS ISSUE.THEY WILL SEND MY APPLICATION TO THE HEAD OFFICE.AND THEY WILL ACCEPT OR REJECT.
WHAT CAN I DO SIR?