Originally posted by : RAAM SINGHANIA
	again  the  valuation  office  dont  have  any  right  to  have  a  right of  civil  court to summon  and  enforce  a  seller  on the  oath  he  can  call for the  information but  dnt  have a  right  a  enforce  him  on  oath and all

i think valuation officer has the power of civil court u/s 37 of W.T. Act....Correct me if m rong....

no discussions on Q. 4????

well  first  its  limited  to  10%  of  gross  income 

in  other case,  then the  deduction  is  70000+30000+20000=120000+30000=150000

or, 62000+32000+25000+30000=149000

second  one is  correct 

its nowhere written dat deduction is limited to 10% of gty, in case of ppf u can contribute min 500 n max 70000, so i think first one is correct so total deduction shoul be 150000

Originally posted by : RAAM SINGHANIA
	only 15000  alllowed  under  sec  80 d  to  nandita  father  as  he  is  non  resident  not  20000as  allowed  to  indian  sen. cetizen

 Yes, fully right, additional 20000 is allowed to senior cetizen who is Indian resident only. refer VK Singhaniya or Bare Act for defination of Sr. Cetizen with reference to Sec 80 D.

Originally posted by : RAAM SINGHANIA
	q.7.a.  already  ansered   b.  cross  transactions  ...so  clubbing  u/s  64  with  mayur and  his  brother of  rs. 5 lks is  required  as  if they  them selves  paid  to  minor  son and wife  c.  1.   aduit  required  , return  required  and  date is  30  sept  2011  with any extention  provided  by  dept  if  any  2.  no  return  required  3.  no  return  required  u/s  sec  10 (23 c)

21.10 MANDATORY FILING OF RETURNS BY SCIENTIFIC RESEARCH

ASSOCIATIONS, NEWS AGENCY, TRADE UNIONS, ETC. [SECTION 139(4C)]

(1) It will be mandatory for the following institutions/associations etc. to file the return of

income if their total income without giving effect to exemption under section 10, exceeds the

basic exemption limit –

Institution/Association etc. Applicable

section

(a) Research association 10(21)

(b) News agency 10(22B)

(c) Association or institution 10(23A)

(d) Institution 10(23B)

(e) Fund or institution 10(23C)(iv)

(f) Trust or institution 10(23C)(v)

(g) University or other educational institution 10(23C)(vi)/(iiiad)

(h) Hospital or other medical institution 10(23C)(via)/(iiiae)

(i) Trade union 10(24)(b)

(2) Such return of income should be in the prescribed form and verified in the prescribed

manner and setting forth such other particulars as may be prescribed.

(3) Then, the provisions of the Act would apply as if it were a return required to be furnished

under section 139(1).

Originally posted by : RAAM SINGHANIA
	Originally posted by : anup pathmudi ans to q6c) pts to be noted - interest is alread due, - circular nos 715 dated 8.8.1995 which says interest credited to interest payable account or suspense account is ALSO taken as credit to the account of the payee, though not seperately reflected, hence tax is to be deducted accordingly. hence AO is justified in his actiion. agree with u

Dear All,

Ministry of Finance has been introduced new circular No. 03/2010 for providing that whether TDS should be deducted by the banks or financial institution on time deposits u/s 194A in cases where only provisioning of interest is done (in case of CBS branches)

So following is the brief text of above circular :

As per provisions of section 194A of the Income Tax Act 1961, income tax has to be deducted at source at the time of credit of interest income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, at the rates in force if such interest amount exceeds specified limit. Further, Explanation to section 194A states that “this section, where any income by way of interest as aforesaid is credited to anyaccount, whether called ‘Interest payable account’ or ‘Suspense Account’ or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly".

In case of banks using CBS software, interest payable on time deposits is calculated generally on daily basis or monthly basis and is swept & parked accordingly in the provisioning account for the purposes of macro-monitoring only. However, constructive credit is given to the depositor’s / payee’s account either at the end of the financial year or at periodic intervals as per practice of the bank or as per the depositor’s / payee’s requirement or on maturity or on encashment of time deposits; whichever is earlier.

Explanation to section 194A was introduced with effect from 1.4.1987 by the Finance Act, 1987 to plug the loophole of avoiding deduction of tax at source by crediting interest in the books of accounts under accounting heads ‘interest payable account’ or ‘suspense account’ instead of to the depositor’s / payee’s account. Therefore, the provisioning account on daily/monthly basis for the purposes of macro monitoring only by the use of CBS software.

It is clarified that since no constructive credit to the depositor’s / payee’s account takes place while calculating interest on time deposits on daily or monthly basis in the CBS software used by banks, tax need not be deducted at source on such provisioning of interest by banks for the purposes of macro monitoring only. In such cases, tax shall be deducted at source on accrual of interest at the end of financial year or at periodic intervals as per practice of the bank or as per the depositor’s / payee’s requirement or on maturity or on encashment of time deposits; whichever event takes place earlier; whenever the aggregate of amounts of interest income credited or paid or likely to be credited or paid during the financial year by the banks exceeds the limits specified in section 194A.

Originally posted by : anup pathmudi
	@ raam:- section 37 of wealth tax act authorises wealth tax authorities including the valuation officers the powers as the court.

Where, however, the Valuation

Officer is of the opinion that the value of the asset is higher than the value declared in the

return made by the assessee or where the asset is not disclosed or the value of the asset is

not declared in such return or where no such return has been made the Valuation Officer is

required to serve on the assessee a notice intimating the value which he proposes to estimate

and give the assessee an opportunity to state his objections, if any, to the proposed valuation

on a date fixed by the Valuation Officer. On the date so specified the assessee shall have the

option either to state his objections personally or through a registered valuer or in writing

before the Valuation Officer and to produce or cause to be produced such evidence as the

assessee wants to rely in support of his objections.

Q.3(D)- LTC-

(iv) Monetary limits

Where the journey is performed on or after the 1.10.1997, the amount exempted under section

10(5) in respect of the value of LTC shall be the amount actually incurred on such travel

subject to the following conditions:

Incomes which do not form part of Total Income 3.13

(1) where it is performed by air, an amount not exceeding the air economy fare of the

National Carrier by the shortest route to the place of destination;

(2) where places of origin of journey and destination are connected by rail and the journey is

performed by any mode of transport other than by air an amount not exceeding the airconditioned

first class rail fare by the shortest route to the place of destination; and

(3) where the places of origin of journey and destination or part thereof are not connected by

rail, the amount eligible for exemption shall be,—

(A) where a recognised public transport system exists, an amount not exceeding the 1st

class or deluxe class fare, as the case may be, on such transport by the shortest

route to the place of destination ; and

(B) where no recognised public transport system exists, an amount equivalent to the

air-conditioned first class rail fare, for the distance of the journey by the shortest

route, as if the journey had been performed by rail.

   Note: The exemption referred to shall not be available to more than two surviving children of an individual after 1.10.1998. This restrictive sub-rule shall not apply in respect of children born before 1.10.1998 and also in case of multiple births after one child.

Illustration 4

Mr. D went on a holiday on 25.12.2010 to Delhi with his wife and three children (one son – age 5 years; twin daughters – age 2 years). They went by flight (economy class) and the total cost of tickets reimbursed by his employer was Rs 60,000 (Rs 45,000 for adults and 15,000 for the three minor children). Compute the amount of LTC exempt.

Solution

Since the son’s age is more than the twin daughters, Mr. D can avail exemption for all his three children. The restriction of two children is not applicable to multiple births after one child.

The holiday being in India and the journey being performed by air (economy class), the entire reimbursement met by the employer is fully exempt.

Illustration 5

In the above illustration 4, will be there be any difference if among his three children the twins were 5 years old and the son 3 years old? Discuss.

Solution

Since the twins’ age is more than the son, Mr. D cannot avail for exemption for all his three children. LTC exemption can be availed in respect of only two children. Taxable LTC =Rs 15,000 x 1/3 = Rs.5,000 .

LTC exempt is only Rs.55,000 (i.e. Rs.60,000 – Rs.5,000)