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May 2010 - Help???

RAKESH (Almost CA) (2199 Points)

02 March 2010

hi guys

In the present budget there has been some amendment that has been given retrospective effect

For example : Clause (U/s. 56) providing to the tax the buyer for purchasing immovable property for inadequate consideration has been removed from 01.10.2009.

whether this amendments will be asked in may 2010 exams. whether the budget announced will have any impact on the Income tax paper . if yes then wat are the amendment.

Please reply . waiting for answer

Thnks in advance.

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10 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 02 March 2010

i dont think it is applicable to may exams ....

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CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 02 March 2010

Nope.......... any change upto 6 months before the said exams would not be questioned in exams............ i.e. changes upto 31st October 2009 may be asked in may 2010 exam........... not any change thereafter........

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jagruti supekar (CA Final) (335 Points)
Replied 02 March 2010

Yes.Praveen is right.This Budget's amendments will b applicable for next Assessment Year,i.e.A.Y.2011-12 means for May and Nov.2011 CA exams.

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C.Balaji (Learner) (1867 Points)
Replied 02 March 2010

The above answers are rite...........Not applicable........

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Prasad R (CA Final) (2128 Points)
Replied 03 March 2010

Only changes prior to 6 months are applicable. so the proposed finance bill 2010 won't have any implications in May 10 exams.

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 03 March 2010

Please don’t worry as the same is not applicable. Just focus on your preparation.

All the Best

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Max Payne (employed) (2574 Points)
Replied 03 March 2010

its not a question of the date from which the changes are effective, whether prospective or retrospective...

To be part of syllabus,

i) the changes should be NOTIFIED 6 months before the exams

ii) changes should be applicable in the relevant AY.

Hence not applicable.

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manoj (student) (5205 Points)
Replied 03 March 2010

(1) Fringe Benefit Tax is not applicable from A.Y.2010-11 and hence, is not relevant for May 2010 examination.

(2) Consequential Notification of new perquisite rules on 18.12.2009 not to apply for May 2010 examination

Consequent to abolition of fringe benefit tax, certain benefits taxed earlier as fringe benefits in the hands of the employer would now be taxable as perquisites in the hands of the employees. For this purpose, new perquisite valuation rules have been notified vide Notification No.94/2009/ F.No.142/25/2009-S.O.(TPL), dated 18.12.2009 with retrospective effect from 1.4.2009. However, the new perquisite valuation rules would be applicable only for November 2010 examination. They would not be applicable for May 2010 examination, since only notifications/circulars issued up to 31st October, 2009 are relevant for May 2010 examination.

(3) Applicability of erstwhile Rule 3 for May 2010 examination

Therefore, the erstwhile Rule 3 would be applicable for May 2010 examination. All the perquisites which were earlier taxable in the hands of the employee, only if the employer was not liable to pay fringe benefit tax, would now be taxable in the hands of the employee in all cases, since no employer is liable to pay fringe benefit tax for A.Y.2010-11.
Rule 3(7), providing for valuation of “other fringe benefits and amenities”, is based on the terms of the provisions contained in the erstwhile clause (vi) of section 17(2). The Finance (No.2) Act, 2009 has amended section 17(2) by including certain other perquisites under clauses (vi) and (vii) of section 17(2). Consequently, the residual clause, namely, clause (viii) of section 17(2), now provides for taxing the value of any other fringe benefit or amenity as may be prescribed. Therefore, the Rule 3(7), prescribing the fringe benefits or amenities in terms of the erstwhile clause (vi) [now clause (viii)] of section 17(2)] have been given in the latest study material relevant for May 2010 examination.