Exemption from Capital Gain tax U/s.54EC

Page no : 2

Manish Manohar Lingayat (Account Head) (65 Points)
Replied 24 May 2011

Hello,

This is to inform you that we have received refund from Income tax department.

IT Refudn A/c. Dr.

To Bank

Is this correct entry na

But IT Refund which head will going on????

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CA Rakesh Garg (Asst. MGR Taxation) (510 Points)
Replied 25 May 2011

no manish , dat is wrong entry.

u have receive refund so bank will be debit

and credit will be prop. capital a/c.

Manish Manohar Lingayat (Account Head) (65 Points)
Replied 25 May 2011

Hello sir,

Can you tell me anyone Income Tax Refund which head will be going on???

CA NITUL MEHTA (KPMG-Senior Consultant-International Tax ) (236 Points)
Replied 25 May 2011

income tax refund will not get taxed under any head but interest recived u/s 244A or say any section of IT Act will be taxed under income from other sources. i hope this was ur question you question is not clear please correct it.

Manish Manohar Lingayat (Account Head) (65 Points)
Replied 25 May 2011

Hello nimit,

I think following entry should be pass

Bank A/c. - dr

To Income Tax Refund A/c.

so, I want that Income Tax Refund in which head means under creat indirect income or loan & Advances

please help me ASAP

Regds

Manish Lingayat

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Manish Manohar Lingayat (Account Head) (65 Points)
Replied 25 May 2011

Hello,

Please tell me whether long term capital gain is to be exempt????????????by not investing in bond or house (Residential house) or investment whatever???(i.e. not u/s. 54 Ec )

Please explain in details...

Regards,

Manish Lingayat

CA NITUL MEHTA (KPMG-Senior Consultant-International Tax ) (236 Points)
Replied 26 May 2011

when ever you pay excess taxes it is showed under loans and advances in GAAP when you actually get back loan repaid entry is given excess tax paid is returned to us it is by no strech of imagination a income . but the interest you earn on that refund is surely a income and credited under indirect incomes

Manish Manohar Lingayat (Account Head) (65 Points)
Replied 26 May 2011

Hello ,

thx. for that

Regds,

manish lingayat

Manish Manohar Lingayat (Account Head) (65 Points)
Replied 26 May 2011

Hello Nimit,

One more thing is that if NILreturn not filed from last 2 years, so any chances for penalty for that.

please explain in details

thx. in advance

Regards,

Manish Lingayat

CA NITUL MEHTA (KPMG-Senior Consultant-International Tax ) (236 Points)
Replied 27 May 2011

if gross total income for that 2years were below taxalbe limit then there is no problem , but if TDS was deducted on you or you had gross total income above taxalble limit but ultimatly there was no self assmnt tax to be paid because of tds already deducted then return of income must have been filed or there are chances to levy penalty but for that AO has to prove mens rea in your mind. and you have to prove that there was no mens rea