Taxable income & Walth Tax

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CPA Parveen Sharma (Querist)
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18 January 2010 Hi Expert.. Good morning to you...

i have few queries if you can please solve these..

1. Winning from TV game INR 140000/- and tds is deducted 42000/- (30%)..while calculating Taxable income of a person...what would be the treatment of this entry..should we add INR 98000/- again in taxable income from salary ? or what would be the treatment of this entry ?

2.Gift received in Cash of INR 51000/- from a friend...this amount would be taxable ??

3. if Free service of watchman, domestic servant and gas/electricity is paid by the employer directly....not reimbursed to employees directly...is that taxable perquisites or what would be the treatment of these entry while calculating Taxable salary of a person.

4. Free education of two children in employer's aided school. fee 700 pm and 3000 fixed charges... that is taxable perquisites ?

5. If employer has provided 1.6 liter engine car to employees...is that taxable perquisites...earlier it was charged under FBT to employer..but now FBT is abolished..how we would treat this amount now ?

Wealth Tax

1. If an indian has fixed assets in UK of 95lac and has cash in hand of 35lac in cash in india to pay loan against the fixed assets he has in USA of 95 lac.. which one would attract wealth TAx.. what would be the treatment while calculating wealth tax of a person.

Thanks,
Parveen Sharma

veena

veena (Expert)
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18 January 2010 receipts from Winning from TV game will be taxable under the head income from other sources for Rs.140000/- and u can take credit of TDS from tax liability

Gift from non relative (refer sec 56)is taxable. But gift received on occasion of marriage is exempt

After abolition of FBT all perqs are taxable in the hands of employee under IT Act. Visit

http://www.incometaxindia.gov.in/Archive/IncomeTax_Valuation_Perquisites.pdf

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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19 January 2010 Hiiii....

Answer of your query is as follow:

1) Taxable amount will be Rs. 1,40,000 and TDS amount will be deducted from Tax Liability. (Sec 56)

2) Yes, Rs. 51,000 will be taxable under sec 56

3)Amount paid to servents will be taxable in the hands of employee (sec 17(2))

4)Taxable amt. will be:
Rs. 700*12+3000 - 1000*12 = NIL
Therefore, Taxable amount will be "NIL' or "ZERO"

5) Amount will be taxable in the hands of emloyee. Please check conditions for different situations.

WEALTH TAX:
1) Untill you did not pay any amount towards loan amount that attract wealth tax amount, if exceeding Rs. 50,000 Cash in hand.
Here, your UK assets will be taxable and because you did not pay any amount then Rs. 35 lac - Rs. 50 thousand = Rs. 34.50 lac will be taxable,
Therefore, Rs. 95 + Rs. 34.50 = Rs. 129.50,
reduced by according to Wealth Tax, i.e. Rs. 15 lac.

Regards!!!

veena

veena (Expert)
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20 January 2010 Wealth tax -maximum ceiling limit is Rs.30 lakhs according to me

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