Income tax query

• Deduction for house loan /installment available up to Rs.100000 /-
• the limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD.Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.
• the payment of loan should be made towards cost of purchase/construction of new residential house property.
• The house property income should be assessable in the hand of asseessee in simple term assessee should be the owner of the house property.
• The payment should not be for addition or alteration to,or renovation or repair of house property done after completion of house.
• Completion of house means

1. completion certificate in respect of the house property by the authority competent to issue such certificate or
2. house property or part has been occupied by the assessee or any other person on behalf of assessee or
3. has been let out;

• Housing loan for more than one house can also be claimed.
• All the benefit of tax u/s 80 c will reversed if house property is sold with 5 year from purchase of house property
• The tax benefit under section 80C is available on residential house property only and not available on commercial house property.
• Loan should be taken from Specified institutions/deptt only given below

1. Central or State Government
2. any Bank including co-operative bank
3. LIC or National Housing Bank
4. public company formed and registered in India or co-operative society with main object to provide long term finance for construction purchase of houses in India.
5. Assessee Employer if public company or public sector company or university established by law or a college affiliated to such university or local authority or co-operative society.

• The benefit is available only to Individual assessee and to HUF assessee.
• The above benefit is available even assessee already has another house property.
• The benefit is available on payment basis ,no matter to which year payment is relates to or payment overdue or not.
• From total amount of installment paid of house loan reduce amount availed under deduction section 24.(INTEREST)
• The Benefit under this section is available whether residential house property is rented or self occupied,but it should be completed as define above by end of the previous year in which loan is repaid.
• Pre EMI are also eligible for deduction if house property is completed by the end of previous year.
• Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee is also eligible for deduction under this section even assessee has not taken any loan .
• There is no requirement that for loan ,house property should be mortgaged to the institution from which the loan has been taken ,but it should be used for the purpose of purchase /construction of house property.

I undestand dividend from an India company is exempt from tax. What should be the treatment of "gross dividend from an Indian firm" when assessing a firm. I though the exemption assumed that the dividend received would be net and that tax had already been deducted by the dividend paying company?

Should it be treated the same as any dividend?

Please help. I need to apply your judgement on an assignment problem I am working.

Urgency: Very high.

question:

Kwality Electronics Ltd. Furnishes you the following information for the assessment year 2008-09, 2009-10, and 2010-11 for advice as regards set off and carry forward of losses:-

                                                                   2008-09      2009-10      2010-11

Interest on debentures                                20000                   25000                   15000

Dividend from Indian company(gross)                18000                   45000                   25000

Income from house property(computed)    20000                   20000                   -20000

Profits or losses from business before depreciation      

-10000        30000                   23000                  

Depreciation                                               8000           10000                   14000

Profits or losses on sale of securities(long term) 

9000           -15000        10000

Speculation profits or losses                      50000                   -25000        15000

You are required to compute gross total income of the company for the assessment year 2008-09, 2009-10 and 2010-11.