What should be the basis of calculating turnover while calculating 8% as profit U/s 44AD? Can it be cash basis ? The ITO claims that when books of account are not maintained, the assessee can not claim that he follows cash basis.On the contrary the ITO is compelling the assessee to follow Mercantile basis on the basis of TDS certificates available with the assessee.Can anybody throw more light on this?Moreover section 44AD does not override section 145.

what is the tax implication of intraday trading done by a person once or twice in every week.i.e neither he is comming under as a invester nor comming under as a trader.

XYZ co ltd. has two subsidiary co's viz. ABC ltd and PQR ltd.

The books of accounts of two subsidiary are maintained at H.O.

Basically the transactions of two subsidiary are entered by the employee on the payroll of XYZ ltd.This means that there are no employees on the payroll of two subsidiary's.

what would be treatment as per IT ?
The question definately crack in our mind that without employee how the transactions been entered.

As an auditor what should be our opinion in such cases ?

CASE: My client has invested a sum of Rs. 24 lakhs in LIC’s MARKET PLUS PENSION POLICY in the Current Year 2007-2008 and out of that Rs. 24 lakhs, he is eligible to get maximum income-tax relief only on Rs. 1 lakh under section 80CCC.

QUERIES: If the above pension policy is surrendered wholly after the lockin period of three years, what will be the income-tax implication?

i) Whether the entire amount received on surrender is subject to tax? Or the surplus amount over the investment is only taxable?

ii) If the investment amount (subject to maximum of Rs.1 lakh) is not at all used to claim deduction under section 80CCC at the time of investment year, what will be the income-tax implication at the time of surrender wholly?
(Section 80CCC reveals that the surrender amount will be subject to income-tax liability only if the deduction is claimed and allowed).

Hi,

My query is, a man is living in Mumbai & has taken a loan for his flat. He is paying interest & gets a Deduction u/s.24B for interest on house property. Now in the same year if he is transferred, for employment purpose in Delhi & has taken a room on rent in Delhi for which the company is paying him House Rent allowance. For Assessment Year 2008-09 can he claim the deduction u/s. 24B and House Rent allowance u/s.10(13A)

We have hired the services of a Packaged Tour Operator for organising our Dealers meet in Bangkok. Tour Operator offered us price of Rs 27775 - per person for expenses and Rs 500/- per person as his service charge. After completion of tour he raised the bill as follow

1. One bill for his service charges @ Rs 500/ - per person
2. One bill for tour arrangement @ Rs 27775 / - per person. He has not provided any supporting documents for claiming expenses reimbursement i.e. Airlines bill, Hotel bill, transport arrangement bills etc.

Please advise us whether we should deduct TDS on first bill only or on both the bills ? Does providing only detail of expenses without any supporting documents makes any difference ?
Further whether TDS will be deducted u/s 194 C or any other section ?

Is TDS applicable on Ocean Freight?

Is an individual not filled return before the due date? is there any penalty in this case?He is a tax audit Case? Pls reply?

Suppose i have two property, one is self occupied and one is let out.
I had taken loan for construction for both the property seply (1.5.2006)
I am paying interest on borrowing capital on both of them
For self occupied property i am paying interest 1,43,000 P.a.
& for let out propety i am paying 1,63,000 P.a
What the deduction can i claim on interest on borrowing capital.

Whether TDS u/s. 194C is to be deducted, if the assessee is to make payment which is in excess the limit prescribed in the section 194C to a printing press for supply of Printed Materials as per prescribed specification?

I have gone throught he circular No. 715 dated 08.08.1995, which says YES.

I have still some doubt in this, particularly after going through the judgemnt delivered in the case- “State of Madras v. Prasad Production (P.) Ltd. {1970} 25 STC 423(Mad.)”.