Dear All,

I am not sure about the methods followed by different departments but as far as income tax is concern... investments and/or deposits are qualified on payment basis only.. irrespective of the year for which they are.....

Pls find the attachment for better understanding ... 

Regards,

Suchit

Mr.Suchit Shah

Mr.Vijay Bhaker Kondapally's question is-

" A Government Employees  salary is computed from 1st march to 28th feb of the suceeding year.  whether investment made u/s 80 C on 15 march 2012 is eligible for deduction in the financial  year 2011-12 or 2012-13."

Now please think of the previous year of the employee mentioned by Mr.Vijay Bhasker - the year starts from March of the earlier financial year and ends with February of current Fianancial Year.

Please read caresfully it is not the financial year starting from April and ending with March.

Now read section 80C

"80C(1) Incomputing the total income of an assessee, being an individual or a Hindu Undivided Family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees."

The assessee's previous year as per the question of Mr.Vijay Bhaker ends with February of the current Financial Year.  The assessee has paid/deposited the investment in the month of March of current Financial Year which does not include in the previous year of the assessee of Mr.Vijaya Bhaker. This month of March will be the starting month of the next previous in the case of this pecular assessee of Mr. Vijaya Bhasker.

Section 80C(1) speaks of deduction for the amounts paid/deposited in the previous year.

I hope I have made the matter explicit and all of you have come to know the pecularity of the case presented by Mr.Vijay Bhaker.

I heartily congratulate Mr.Vijay Bhasker.

Best Wishes

Sathikonda

Sir,

Income tax considers only financial year and it is least concern with otherthings ..... like when u have paid n for which month u have paid.....

I think it can be claimed,corect me if I m wrong

Dear All

Mr.Dintakurthi Tirumala has sent mea PM wherein he has stated that   the investment made in the month of March for the purpose of Deduction u/s 80C is eligible for deduction  though the income for the month of March is not considered for the purpose of gross total income.  Thus he has repeated the same matter. Because of lack of experience in interpreting the statutes he is regid and sticks to the same statement what was made by him by mistake.

Anyhow I hope that he would correct himself  as he is still a child  and I wish him a better future as a Chartered Accountant.

Once again I congratulate Mr.Vijay Bhasker Kondapally who raised this question.

I advise you all not to make statements without a deep study and with half-knowledge.

Best Wishes

Sathikonda

Mr. Satikonda you are tax consultant i don't know what is your service expirence for some of the reasons i don't like to continue this discussion. what may be if i heart you please excuse me.

OM SAI SRI SAI JAI JAI SAI

Mr.Dintakurthi Tirumala

When there are arguments in this forum among the memebers there is no question of hurting somebody.  What you have to learn is not to be regid in accepting the facts. There is a lot of future for you as still you are only a student. Whether to continue the dicussion or discontinue it is upto you. 

Best Wishes

Sathikonda

sir, you are not understanding the case and not anaylising the answer and section and you are in your own answer. Thus i don't like to continue discussion no any other cause. Anyway i am just student i don't know about your service expirence. But for your answer you are not supporting the evidence or section. I am not only many others are replied with supporting my answer. But you are in your answer and not prove it is correct. Anyway if my intension is wrong please clarify with the proper evidence and section supporting the same and where and which section it was disclosed. Because not only me many of all has to realise about this intension. Its common every pearson not understanding each and every for clarying their doubts this type of quries arises so clarification with evidence and with confident and suporting is very important. In some case which are more dificult to it i fight with my Employer who is CA and practicing since 1986 and won becasue of proper proof and confident and section reference etc.......... only such confident in me i discuss the case otherwise don't touch it because i also not know all.    Anyway please clarify your answer with suporting evidence of sections etc.... because i am student and more of all has to know about it and it will help full my future.

OM SAI SRI SAI JAI JAI SAI

Mr.Dintakurthi Tirumala

I have analysed the wording of the sections with the intention of the legislature while introducing the sections on the statute book.  No more clarification is required. When you are stating that what was analysed and explained is wrong the burden of proof is on you how it is wrong.

Best Wishes

Sathikonda

In your view your are correct but not clarifing me you produced section 80C not suporting your answer.Due to the not satisfing with your answer and not analysing your answer i asked you give clarificating to your answer with support but you couldn't do but you are not understanding the discussion. Anyway in your view you are correct and my and many views we are correct. so leave this disccussion.

OM SAI SRI SAI JAI JAI SAI

Mr.Dintakurthi Tirumala

Your argument is obstinate. It is upto you to learn things.

Best Wishes

Sathikonda

Ok sir you are correct but you fail to give clarification and satisfication of your answer to others.

OM SAI SRI SAI JAI JAI SAI

Mr.Dintakurthi Tirumala

Please see your answer at the beginning of this dicussion which is copied and reproduced hereunder:

"Deduction under section 80C would be eligible for deduction of amount which is paid in the financial year and it is clear for the pupose of deduction under section 80C only payments from 1st april to 31st april would be eligible for such deduction and it is clarified by the department but i presently i did not provide you basis and notification but sure."

When you are sure that you are correct you must produce the material on which you depend to state that you are correct. 

I have not depended upon any out side matters such as CBDT circulars/notifications, case laws or articles I have explained the contents of the section 80C and other relevant sections regarding scope of total income etc.,  For this explanation no out side material is not required.  It is upto the readers to understand the contents keeping in mind the intention of the legislature while drafting the said sections.

Determine yourself who have failed to produce the supporting materials.

Why I am after you is that you are a clever student at the same time your arguments are obstinate.  This type of attitude in the persoality of a professional person will hinder the growth.

Best Wishes

Sathikonda

Mr. Sathikonda sir till you reproducing my i answer i didn't notice my typing mistake till now i in opinin i replied as 1st April to 31st March. So i accept my typical mistake and i am sorry to you at the first reply of you. You said please read your reply once again then also i didn't notice my typical mistake. I am very really sorry but till now i discussed with you about the eligibilty to get 80C deduction which are made payment with in the financialy year i.e from 1st April to 31st March for the relavent Assessment Year but not my mistake i.e.1st April to 31st April. and why these discussion goes long you are said for which period income offered in such period payments only eligible for  deduction 80C but i said irrespective of the income offering period payments made in the financial year are eligible for get deduction under section 80C. Sir i am really sorry till now i argued for these answer and for it give clarification but at any where i didn't find anywhere supporting your answer i.e income offering period i.e. March to Febraury for out author case.  Sir once again i am very very sorry to my typical mistake.  However it is clear in my reply i refer Financial Year. Sir i thanks you for your apprication and showing my mistake. Once againg i am really sorry for my typing mistake.     Thanking you sir,

OM SAI SRI SAI JAI JAI SAI

Sir i more clarification for it i reproducing your first reply here