(Director- FinMAT Consultants)
22 February 2008
This is not eligible u/s 80C
what is meant by income
1.Income Tax is levied on net not on gross. Except salaried class all are allowed to deduct their all expenses incidental to their earning as per their wish, Salaried class was allowed to deduct their expenses since 1922 to 2004 but after disallowance of standerd deduction salaried people are bound to pay on gross. Exemption limit is same for all but salaried on gross others are on Net, what a decision of law expert Finance Minister !
2.Business income is taxed after deducting all Govt. Taxes except wealth tax,I.Tax, FBT paid by them (which are recovered by them from their customers)out of gross receipts, While others are not allowed to deduct all taxes paid to the Govt.Service tax paid must also be allowed to be deducted out of gross receipts in case of other assessees.
3.Supreme court and high court Justice and members of parliament are provided bunglow at posh areas having substantial value but not added to their income but in others the value of house is added.
Dr. Rajiv. K. Gupta (Reader)
Deptt. Of Commerce & Bus. Adm.
Govt. Post Graduate College, Noida