Deemed Income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2010 Respected Sir,
I have received your reply of my query regarding deemed income,thanks for the same.
Now as per my knowledge/reading refer Rule 8-D eventhough if assessee does not incurred any expenditure against earning exempt income he has to pay 0.5% Tax on such income whether it is correct or not? and if 0.5% Tax to be charged, from which assessment year it is applicable.
Kindly advice for the same.
Regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
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02 November 2010 But read heading of section 14A first and then resort to rule 8D.

the rule is applicable w. e. f. A. Y. 2008 - 09 as per bombay high court decision.