tax experts questions

q2. yes set off shud be applicabl.this is justified on following grounds(others may differ in this view)

there are two sections . sec 72 carry fwd and set off pgbp losses

                                             sec 32(2) set off and carry fwd of unabsorbed dep.

these are entirely different sections. sec 72 says that losses under pgbp head cant be set off with salary ncome.

sec 32(4) says set off under all heads applicable. this is clarified by following case

 The words ‘no profits or gains chargeable for that year’ are not confined to profits and gains derived from the business whose income is being computed under section 28 - CIT v. Jaipuria China Clay Mines (P.) Ltd. [1966] 59 ITR 555 (SC).

although set off of unabsorbed depriciation applies subject to sec 72 and sec 71...we cannot say that unabsorbed dep cant be set off with pgbp loss, as the above sections dont mention abt unabsorbed dep. specicfic law for unabsorbed depriciation is only and only 32(2).

therefore i think set off can be done

 q3. same priciple is applicabe to other capital expenditure.

  the provisions of sub-section (2) of section 32 and of sub-section (2) of section 72 shall apply in relation to deductions allowable under this clause as they apply in relation to deductions allowable in respect of depreciation .

 q3. sec 89 is relef for salary received advance or in future.

in this salary is computed both on receipt basis and then on accrual basis. tax to be paid at lower of the tax computed by either methods.

 q3(ii) sec 90 and 90a are related to dtaa's with foreign countries or specified associations respectively. tax is to be paid as per dtaa, if income is subjrct to tax both in india and foreign countries.(dtaa=double taxation avoidance agreement)

as per cit vs kulandagan chettiar, dtaa wud prevail if there is conflict between  income tax act and dtaa.

section 91 applies in case of absence of dtaa with foreign country and india does nt have dtaa with foreign co. and global income of assesse is subject to tax. 

relief = lower of the following

(tax onT.I. in india/T.I in india)*doubly taxed income

(tax paid in foreign country/T.I assessed in foreign country)*doubly taxed income

My friend is living in his own house in bangalore.He is working at bangalore with Beml and getting HRA from Beml limited.His family is living in Delhi in rented house.Can he claim exemtion against HRA towards rent paid by him against rented house in which his family is living in Delhi.

q6. closely held co. is a co. in which public are not public are substatially interested(that is it is not  widely held co.)

widelly held co.=

1.co which is not a pvt company and whose equity shares on the last day of relevant py were listed on a stock exchange

2.it is a co. which is not a pvt co. and 50% or more equity shares througout  the relevant py are held by

        1. govt2. corp establised by state or central act3.co. listed on a stock xchange or 100% subsidiary of such co.

3.co. regd under sec 25 of co. act 1956

4.co. owned by govt / rbi

5. co. in which 40% or more shares are held by the govt. or rbi. or corp. owned by rbi

6. mutual benefit fin. co.(nidhi benefit sociecty)

7.co. in which atleast 50% shares  are held throughout relevant by by one r more  cooperative society

  @ mahesh kumar

deduction u/s80gg is applicable  to followin

i self employed

ii an employee who is neither getting hra or rfa.(bt if rent is paid back to employer then deuction is allowed)

 we do not deduct dividend u/s 2(22)e . we deduct dividen u/s 2(22) c

q7.we deduct the dividen covered u/s 2(22)e because of the following section

sec 46(2)[specific provision] it says clearly for computing capiatl gain on t/f=sale consideration

                                        money received

add: fmv of assets receved on dt of distribution

less: dividen assessed u/s 2(22)c

.

keyman insurance policy= policy made to cover for the losses that wud be caused by loss of keyman like a director

here premium is paid by co.(allowed u/s 36)

policy amt is also received by co....which s taxable u/s 28

  Ans to Q2 . yes kabir sen is right. unabsorbed dep can be set off against salary income as per section 32(2), but effect shall first be given to the provisions of section 72, and then if any income is there then unabsorbed dep can be set off against such income.

 yes ...set ff of business loss has higher priority

Well the answers provided by Kabirsen are good enough....But I dont agree with ans 2. Unabsorbed dep cannot be set off against salary income.....we had a discussion on this in caclub sometime back.....U  can check the study material provided by the institute and also V K Singhanias......its specifically mentioned there....

Q1: U need to deduct the following incomes from GTI..

1.LTCG,

2. STCG u/s 111A,

3.  Income on which Income Tax is not payable,

4. Income referred to in sec 115A,115AB,115AC,115AD,115BB AND 115D.

Also adjusted GTI is calculated for the purpose of claiming deductions u/s 80G,

 with due respect to all authors and icai study material

the explainaion provided is on my own opinion.

there's a fault in the interpretation provided by mr singhania and study material.

if they say that unabsorbed dep. cant be set off with salary, then it should also imply that unabsorbed dep cant be carried fwd for more than 8 yrs.

we cannot hv inconsistent intepretations. 

plzzzz....guys think abt it.....