we are mfrs in andhra pradesh, import entitelment benifit under DEEC/DEPB is eligible for deduction u/s 80-ib

I would like to know what is the last date for filing of the return for the AY 2007-2008 with interest? Is it Feb'29 or Mar'31?

Sub: Tax Treatment of Keyman Insurance Policy





Dear Sir,



We seek your advice on the above refer subject in respect of Tax implications in the case of Company/Individual etc.



FACTS OF THE CASE:



Highway Industries Limited has taken out a Keyman Insurance Policy in the name of Managing Director Sh.Umesh Munjal w.e.f 01-04-1994 and yearly premium of Rs.5.94 Lacs is being paid to L I C. This amount is being claimed as expenditure in the books of accounts of the Company. As we understand, as per the Current Income Tax Provisions the whole amount of the Policy as and when received in the hands of the Company will be taxable in the year of receipt.



Present surrender value of the Policy is appx. Rs.75 Lacs.





QUERY:



An Insurance Consultant has suggested the followings:



The company assigns the assurance policy in the name of the Managing Director by passing a Board Resolution.
No gift Tax will be payable by the Company on such transfer and the Managing Director will be liable to pay Income Tax on the surrender value of the Policy treating it as his Income.
After assigning the Policy, in future onwards the Managing Director will pay the premium for the remaining period of the Policy which is about 2-3 years in our case.
The Managing Director will get the maturity value from the L I C in his own name.
The insurance adviser has stated that on the assignment of the Policy and the subsequent premium payment made by the assured will change the character of the policy and it will not be treated as Keyman Insurance Policy and the maturity value received in the hands of the Managing Director will be Tax Free.






We want your opinion and guidance on the above referred matters on the following points:




1) Whether as per Company Law is it possible to assign the policy to Managing Director by simply passing a Board Resolution or does it require any Shareholder Resolution or any Govt. Approval for the same as it entail a benefit of appx.Rs.75 Lacs to the Managing Director on the date of assignment but in the next two years the premium paid by the Managing Director will be Rs.12 Lacs against which he would get a maturity value of Rs.2.5 Crores.



2) Whether the amount received by the Managing Director will be Tax Free Income or whether it will be treated as taxable income in his Individual hands.









IIND QUERY:



Please clarify whether TDS is to be deducted on amount exclusive of Service Tax/Vat or Inclusive Service Tax/Vat. in case of payment made to Parties from whom we are getting the work done



For Example:



Value of Contract Rs.100000/-



Service Tax @ 12.36% Rs. 12360/-



Vat @ 4% Rs. 4494/-



Total Rs.116854/-



Whether TDS is to be deducted on Rs.100000/- or Rs.116854/-



With Best Regards



CMVASUDEVA

I would like to know what is the amount of deduction in respect of LIC premium paid the assessee for the assessment year 2008-09?

is it necessary that a person must be declared insolvent by court b4 deducting bad debt?

Is it possible for govt to give HRA allowance even if the employee doesnt stay in a rented house(stays in self occupied property)... and can the employee deduct the same.

what is the value of perquisite in case of unfurnished accommodation provided to an employee of a bank which is a govt. of india undetaking ?

please send in your answers to

srinivasanupama@gmail.com

person receiving Rs.35000 monthly as a salary,he is not having any proof for his rental house but for purpose of HRA calculation it is needed. is there any alternative please submit me in detail

WHICH PERSON CAN FILL AIR INFORMATION IN HIS RETURN. IF A PERSON IS A RETAILER OF SHARE TRADE, WHETHER HE WILL HAVE TO FILL AIR INFORMATION ABOUT HIS SHARES IF HE PURCHASED SHARES MORE THAN 1 LAC RUPEE.

RETAIL TRADE OF SHARE MEANS A PERSON WHO PURCHASE/SELL SHARE DAILY IN LARGE QUANTITY.

an employee is furnishing loss from house property as per form 12C as follows:

Rental Income 120000
Less: interest on borrowed capital 300000
Loss from house property 180000

He is having two properties: one he is residing in ie Self occupied property and another for which he receives rental income.
Now my query is whether employer can entertain the loss of Rs.180000/- while computing the tds on salary or not?
Kindly revert at the earliest as this is urgent.

Thnaks & Regards
Veena