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Swati
Teacher
Asked: In:

  1. Vikas Beginner

    If the Trust already has registration u/s 12AA, then it can apply for registration u/s 80G under clause iv of the first proviso to section 80G(5). However, it will have to apply for fresh registration u/s 12AB first for the reason stated in the preceding paragraph.

    If the Trust already has registration u/s 12AA, then it can apply for registration u/s 80G under clause iv of the first proviso to section 80G(5). However, it will have to apply for fresh registration u/s 12AB first for the reason stated in the preceding paragraph.

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Swati
Teacher
Asked: In:

  1. Swati Teacher

    A Trust which does not have registration u/s 12A and 80G of the Act can apply for provisional 12AB and provisional 80G registration. The case will fall in Section 80G(5)(vi) and the clause iv of the first proviso to the said section. The application may be made in Form 10 A with the required enclosuRead more

    A Trust which does not have registration u/s 12A and 80G of the Act can apply for provisional 12AB and provisional 80G registration. The case will fall in Section 80G(5)(vi) and the clause iv of the first proviso to the said section.

    The application may be made in Form 10 A with the required enclosures as stated under Rule 11 AA of Income Tax Rules.

    However, since Sec 80G (5) talks about the registrations to Charitable Trusts established in India whose income is not liable to be included in total income under section 11,12 or clause 23 AA or 23 C of section 10, the first registration granted would be provisional registration u/s 12AB of the Act.

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Vikas
Beginner
Asked: In:

  1. Swati Teacher

    Clause (a) of the Proviso to Section 12A (2) clearly specify that if the existing Trusts / Institutions registered under Section 12A or 12 AA of the Act, apply for fresh registration u/s 12 AB of the Act before 30th June 2021, provisions of Section 11 and 12 shall apply to Trust/ Institution from thRead more

    Clause (a) of the Proviso to Section 12A (2) clearly specify that if the existing Trusts / Institutions registered under Section 12A or 12 AA of the Act, apply for fresh registration u/s 12 AB of the Act before 30th June 2021, provisions of Section 11 and 12 shall apply to Trust/ Institution from the assessment year from which they were granted their earlier registration.

    Section 12A (2) further clarifies that if the said time line of 1 st April to 30th June 2021 is not followed, the provisions of Section 11 and 12 shall apply to Trust/ Institution from the 1 st day of the financial year in which such application is made.

    In short, within time application for fresh registration u/s 12 AB will register the Trust from the date on which it was originally registered u/s 12 A or Sec 12 AA. If the application for registration u/s 12 AB is made late that is after 30/06/2021, the registration u/s 12 AB will be granted for F Y 2021/22 and onwards.

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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more

    Leave encashment at the time of service is fully taxable.

    Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.

    But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:

    Leave encashment received 200000
    Average salary* of last 10 months 180000
    Salary per day * Balance of earned leave for service span (Maximum 30 days leave per year for every year of completed service is allowed) 250000
    Amount notified by the Government Rs 3,00,000 aggregate. 3,00,000
    Leave encashment Exemption(Lower of above) 180000

    *Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.

    So the taxable amount is Rs 2,00,000-1,80,000=20,000/-

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.

    Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.

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Jitender singh
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    Hi, TDS on Payment to consultant is covered in section 194J of the Income Tax Act. Let's discuss the second part of this question i.e who is required to deduct TDS As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF: In case ofRead more

    Hi,

    TDS on Payment to consultant is covered in section 194J of the Income Tax Act.

    Let’s discuss the second part of this question i.e who is required to deduct TDS

    As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF:

    • In case of an individual or HUF carrying on a business: Where his turnover does not exceed Rs. 1 crore during the previous financial year.
    • In case of an individual or HUF carrying on the profession: Where his turnover does not exceed Rs. 50 lakh during the previous financial year.

    Now let’s see the first part of the question i.e what happens if TDS is not deducted.

    Following consequences need to face to the service recipient.

    1. Disallowance of 30% Expenditure in the year in which it is claimed.
    2. Interest @1.% per month/part of the month from the date on which TDS was required to be deducted up to the date of actual deduction.

    Thanks!

     

     

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Ankit
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit. This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business. So in this case, if the taxable income oRead more

    Hi,

    The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit.

    This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business.

    So in this case, if the taxable income of a business is less than the maximum amount which is not chargeable to tax then filing of return is not mandatory.

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Ankit
Beginner
Asked: In:

  1. Best Answer
    CA Manish Kumar Gupta Enlightened
    This answer was edited.
    Is interest paid on home loan included in the cost of housing property while computing capital gains tax on its sale?

    Hi, In short "Yes" Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative.  Generally, People buy a house with the help of a bank loan and pays interest on that home loan. Repayment of Principal is allowed as deduction under section 80C and Portion ofRead more

    Hi,

    In short “Yes”

    Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative.  Generally, People buy a house with the help of a bank loan and pays interest on that home loan.

    Repayment of Principal is allowed as deduction under section 80C and Portion of such Interest can be claimed as deduction under section 24(b) while calculating Income from the house property.

    Now see the twist:

    Interest paid on a housing loan can be considered in the acquisition cost of a house while calculating capital gain under section 48.

    Section 48 of Income Tax says that

    The income chargeable under the head “Capital gains” shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:—

    (i) expenditure incurred wholly and exclusively in connection with such transfer;

    (ii) the cost of acquisition of the asset and the cost of any improvement thereto:

    The case of CIT vs. C. Ramabrahmam (2013) also supports this claim.

    So, Interest paid on a house loan can be claimed at both the income head, House Property, and Capital Gain.

     

     

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    • 8
Kirti Agarwal
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    What is the definition of Salary as per Income Tax Act?

    In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments a) Wages b) Annuity or pension c) Any Gratuity d) Any fees, commission, perquisite, or profits iRead more

    In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments
    a) Wages
    b) Annuity or pension
    c) Any Gratuity
    d) Any fees, commission, perquisite, or profits in lieu of or in addition to any salary or wages
    e) Any Advance of Salary
    f) Leave Encashment
    g) Employers contribution to the provident fund in excess of 12% of Salary
    h) The contribution by the central government or any other employer in the previous year to the account of an employee under a pension scheme u/s 80CCD

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    • 6
mkg
Teacher
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    Hi, You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21. Income Tax slab for Individual Below 60 years, HUF and NRI Income Old Regime New Regime  Up to 2.5 Lakh NIL NIL 2.5 Lakh to 5 Lakh 5% 5% 5 Lakh to 7.5 Lakh 20% 10% 7.5 Lakh to 10 Lakh 20%Read more

    Hi,

    You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21.

    1. Income Tax slab for Individual Below 60 years, HUF and NRI
    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 5 Lakh 5% 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above15 Lakh 30% 30%

    2. For Individual 60 years but less than 80 years

    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 3 Lakh NIL 5%
    3 Lakh to 5 Lakh 5% 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above 15 Lakh 30% 30%

    3. For Individual 80 years and above

    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 3 Lakh NIL 5%
    3 Lakh to 5 Lakh NIL 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above 15 Lakh 30% 30%

     

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