1) Is there a distinction between revenue and capital expenditure for making TDS?

2) Do we need to make TDS for provision made during the year (for e.g., audit fees)?

3) What is the consequence if TDS is made without applying for TAN?

Two people invest money as follows:

A invests Rs.10 lakhs in cash to purchase a piece of land but takes his brother B as joint holder in the registration though B does not invest anything for the land at the time of regn.

Later B takes a housing loan based on his income for Rs.13 lakhs taking A as a co-applicant for the loan but without any liability. A and B invest 4 lakhs cash each to build a residential house on the said land. Their total investment is as follows
A Cash for land 10 lakhs
cash for building 4 lakhs

B Loan for building 13 lakhs
cash for building Rs.4 lakhs

The property fetched a rental income of Rs.20,000 of which RS.15000 was appropriated by B towards his loan every month and Rs.5000 taken by A.

Seven years later the said property is sold for 80 lakhs and the loan of B was repaid in full. The market value of a similar vacant land at the time of sale is 5 times the original purchase price. Balance Loan of A is around 10 lakhs.

My question is how will the sale proceeds be distributed between A and B and the amount of Capital Gains liable by each?

Since the land value has multiplied five times and B has already taken a substantial amount of the returns on the property for appropriation towards the loan Principal and interest, Can A claim that the original investment in land was made by him and the it is the value of the land that has increased while the building actually depreciates over time.

for EG. Land value at the time of sale Rs.60 lakhs to A
and

Balance being value of the building Rs.20 lakhs in the proportion of their investment in the building after setting off the balance of the loan of Rs.10 lakhs. Then both are entitled to Rs.5 lakhs each.
But even then they have not shared the income from property equally. Will B have to repay a proportionate amount of the rental received over the past seven years? Then B's share will again reduce substantially.

Since this is a very tricky situation, I would appreciate an answer that should be substantiated with some legal facts.

Dear Memebers,

If an employee leaves the job by not serving the full notice period then salary equivalent to shortage of notice period will be recovered from the employees salary. Will this amount be deducted from the total salary paid by the employer in the Form 16 sent to employee. Can an employee show this amount recovered by employer as deduction from salary income in the return to be filed with Income tax department.

Reagrds,
Sridhar J

The AO charged interest @12% p.a. for delay in deposit of TDS by one day to three days for full one month. But as per rule 119A (a) where interest is to be charged @ per annum basis then part of month is to be ignored. If delay in deposit of TDS is less than one month whether the AO is right in charging the interest for full month.If AO is correct then What is the remedy?
Kindly reply urgently.

Is there is a pre-condition that for claiming deduction for repayment of housing loan under sec 80c the house should be self - occupied?

If a Security Officer working as chief security officer on three years contract basis but all terms & condition in contract shows his identity as employee i.e. PF Deduction & leave & othes rulse all similar as employee on roll.

What section apply for his TDS Deduction u/s 192 or 197C or 194J?.

Thanks

NITIN KUMAR VIJAY
9218567870

If a Security Officer working as chief security officer on three years contract basis but all terms & condition in contract shows his identity as employee i.e. PF Deduction & leave & othes rulse all similar as employee on roll.

What section apply for his TDS Deduction u/s 192 or 197C or 194J?.

Thanks

NITIN KUMAR VIJAY
9218567870

DEAR SIR

IS IT ALLOWED BY AN INDIVIDUAL ASSESSEE, TO CLAIM A LESSER RATE OF DEPRECIATION ON THE VEHICLES, USED DURING THE YEAR, FOR INCOME TAX PURPOSES

S.NARAYANASWAMY

Can anybody tell me about the books for CA final for direct tax and indirect tax.

sri pushpendra an expert repied that hiring charges of car attract tds u/s 194c on dt.16.3.08. in a queryof auther sachine posted on 16.3.08 while same type of query of dinesh posted on 15.3.08 CApraveen chopra difined it u/s 194I WHICH IS ALSO AGREED by R.V.Rao. and CA Shailesh on 16.3.08.please clarify.