Wealth tax

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Thejaswini HD (Querist)
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14 January 2015 Can anyone please tell me, whether investment in gold chit fund can be considered as asset under wealth tax...

Kindly reply

Amol S Joglekar

Amol S Joglekar (Expert)
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14 January 2015 No, it is NOT an asset under the Wealth Tax Act.

Thejaswini HD

Thejaswini HD (Querist)
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14 January 2015 under which head will it be considered.. can you please little details about it

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Amol S Joglekar

Amol S Joglekar (Expert)
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14 January 2015 what do you mean by "which head"???? Can you elaborate?

It does NOT fall under the definition of ASSET as per sec 2ea of Wealth Tax Act.

Thejaswini HD

Thejaswini HD (Querist)
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14 January 2015 Sir actually i wanted to kmow whether it can be considered as an asset... i will refer the section you have mentioned.. thank you so much sir

Amol S Joglekar

Amol S Joglekar (Expert)
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15 January 2015 You are most welcome. Waiting for your revert.

Thejaswini HD

Thejaswini HD (Querist)
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16 January 2015 Sir

Whether payment to universities is subject to TDS Kindly reply

Amol S Joglekar

Amol S Joglekar (Expert)
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16 January 2015 who is payer...what is the type of payment.... Please specify the same so that it will be easy to answer...

A student paying the University fees is NOT supposed to do TDS

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Thejaswini HD

Thejaswini HD (Querist)
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16 January 2015 No it is not a student. If a trust is making any payment on contract basis to an university

Amol S Joglekar

Amol S Joglekar (Expert)
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16 January 2015 yes. please go through sec 194C. The trust is included in the list of "specified persons"

http://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

you may follow the link

Thejaswini HD

Thejaswini HD (Querist)
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16 January 2015 so if we consider 194C specified person will include universities too.. so it is subject to tds... isn't it sir?

Amol S Joglekar

Amol S Joglekar (Expert)
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16 January 2015 yes, right.

Just to make it clear....

University has given contract to contractor.....
The contractor is to receive money from University
While making payment to contractor, TDS must be deducted... right?

Are we on same platform?

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Thejaswini HD

Thejaswini HD (Querist)
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19 January 2015 U/s 10(23) income of university is exempt from tax. So there is no need to deduct tds on payments to university as it is exempt from tax... What do you say sir....

Amol S Joglekar

Amol S Joglekar (Expert)
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19 January 2015 The Income Tax Act which I am referring says
[Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]

Can you please give me the section number ????Please

Thejaswini HD

Thejaswini HD (Querist)
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19 January 2015 It is given under section 10(23c)...

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Amol S Joglekar

Amol S Joglekar (Expert)
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20 January 2015 01. In fact that is the reason i thought of asking you the EXACT section. We need to be very meticulous in quoting the section number.

02. 10 (23C)iiiab......any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government;

In such cases, if you are cock sure that the concerned University falls under that, then TDS may not be INVOKED.

A safer course of action in all such cases is to ask the concerned PAYEE to get a letter from the concerned Assessing Officer that the TDS should not be done or be done at a lower rate.

Thejaswini HD

Thejaswini HD (Querist)
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20 January 2015 okay sir... thank you so much.... will consider your suggestion ..

Amol S Joglekar

Amol S Joglekar (Expert)
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20 January 2015 You are most welcome.
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