Tax planning

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2011 Dear Sir/ Madam

Mr. A is a director in company and his salary structure is Rs. 150000/- Basic Salary, 25000/- HRA, and 25000/- Special Allowance Total 200000/- P.M.

He has 1 house property in gwalior city and want to construct another house in same city so that he sold the house and now take a house on Rent of Rs 80000/- p.m. (40000/- in cheque and 40000 in cash).

Now i would like to know what deduction and benefits are available for company and director also.

Its very urgent.

Regards
Amit

CA PRAVIN

CA PRAVIN (Expert)
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07 October 2011 Director's Point of view:

1] Director will get the benefit of HRA exemption.
2] House which he sold, capital gain will attract whether short term or long term as the case may be.
3] Whether he purchased a house property within a period of two years [ for construction 3 years] he will get a deduction us/ 54.

I THINK NO DEDUCTION WILL BE AVAILABLE FOR COMPANY.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 Sir,thanks for reply but I have another query that, In the same city whether he will get the HRA Exemption. however I agree with the points related to the capital gain.

I would also like to know the best route in this case to save the tax and benefits available for co.

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