Tax law

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 Kindly suggest Answers:
(I) Under section 32 of the Income tax Act, 1961, Licences are depreciated @......
(a) 10% (b) 15% (c) Nil rate (d) 25%

(II) Expected rent shall be higher of the ;
(a) Municipal value and standard rent
(b) Fair rent and actual rent received
(c) Standard rent and Fair rent
(d) Municipal Value and Fair Rent.

(III) Under section 10(10), the maximum amount of gratuity received which is not chargeable to tax shall be;

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

01 February 2012 (1) Licences are intangible assets therefore, rate applicable is 25%

(2) Expected rent shall be higher of:

Municipal Value & Fair rent

Actual rent received comes into play while calculating Gross Annual Value.

(3) IT is based on lower of specified limits and whether it is covered under Gratuity Act or not..But maximum limit is revised now in 2010 which is 1000000

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2012 Thanks Sir

Sir my another query is:
Loss from business can be set-off against other income in subsequent assessment year except:
Income from speculation business

m i right or nor

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

02 February 2012 Loss from non-speculative business can be carried forward and set-off against any business income whether speculative or non-speculative.....

But loss from speculation business can be set off against income from speculation business only

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