5 Situations Two Persons Can Claim Depreciation During the Same Year ?
The law of claiming depreciation on asset of business is regulated through section 32 of the Income Tax Act . Further Income Tax Rule provides depreciation rate for various class of assets. Now as it...
View ArticleNo Disallowance for Cash Payment Exceeding 20000 if Profit is Estimated or...
Section 40A(3A) of the Income Tax Act prescribes law for disallowance of any expense in connection with which payments in excess of Rs 20,000 have been made in any cash. The provision has to be read...
View ArticleFuture & Options Trading on Multi Commodity Exchange is Not Speculation Now!
Section 43(5) defines speculation business and also what is not speculation busienss .Previously National Stock Exchange (NSE) , BSE and NCEDEX have been notified as the recognised exchange for the...
View ArticleUndisclosed Income Can Be Adjusted With Business Loss !
It happens quite often that assessee declares or discloses suppress income or income , whether on psychological pressure from assessing officer or to buy peace with department or on being caught...
View ArticleNo Disallowance for Short Deduction of Tax, Only Consequence is Interest u/s 201
Non deduction of tax has a severe consequence in form of disallowance of expenditure under section 40(a)(ia) is now something is known to almost all. Since the disallowance mean higher taxation for the...
View Article100% Donation Allowable If You Can Prove It Was For Business ! Sec. 80G is...
A businessman has to donate to many organization, some out of volition some due to trading activities. For example, there may be situation in which a businessman cannot trade in an area unless the...
View ArticleCalcutta HC: Tax Related To Next Year Paid in Advance Is Allowable in Year of...
Calcutta High Court in recent order in case of Paharpur Cooling Towers Ltd. vs CIT passed on 15 July 2011 delivered a very important issue regarding disallowance of tax paid u/s 43B of the Income Tax...
View ArticleCarbon Credit Income Not Taxable !
What is carbon credit and various important aspects of carbon credit was explained in previous post titled carbon credit 8 frequently asked question.The taxation issues still have to be settled , in...
View ArticleCarbon Credit : 8 Frequently Asked Questions !
Carbon credits is the outcome of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) which is an international treaty that sets binding obligations on...
View ArticleBusiness Turnover : What to Deduct & What Not ?
The computation of turnover is important for any business , because two major provisions under Income Tax Act apply on the basis of turnover of business. For example , if a business is having turnover...
View ArticleMeaning of Turnover for Day Trading,Commodity Derivative & F & O in Shares...
The computation of business turnover is very important because many provisions applies on the basis of business turnover. For example, whether a business persons can opt for presumptive scheme u/s 44AD...
View ArticlePostal & Insurance Agents :What Deductions Allowed ?
The persons who are insurance agent or postal agents who receives commission for selling various kinds of investments and insurance products of insurance companies and postal department. One reader...
View ArticleNo Adjustment of Brought Forward Business Loss or Unabsorbed Depreciation...
The issue regarding setting off of brought forward business loss with the gains on sale of business asset is an ongoing controversy. It is well known that section 50 of the income Tax Act treats the...
View ArticleNo Tax Audit u/s 44AB in 6 Types of Busiensses Even if Turnover is More Than...
Tax audit u/s 44AB of the Income Tax Act is a necessary compliance by all person carrying on business when the turnover of the business exceeds Rs 1 Crore (10 million). Similarly , for persons...
View ArticleCommodity Transaction Tax Rules :Error in Notification !
CBDT has issued Commodities Transaction Tax Rules, 2013 which was the need of the hour as the Finance Act 2013 brought in the provision of a new Commodity Transaction Tax under Chapter VII of Finance...
View ArticleCommodity Derivative Transactions Are Business Activity Now !
Few years ago the nature of Future & Option trades in shares through NSE or BSE were made business income.Later , the nature of trades in foreign exchange derivatives conducted through MCX Stock...
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Is Provision @ 0.25 % of Assets of NBFC Allowable Deduction?
Is Provision @ 0.25 % of Assets of NBFC Allowable Deduction?Reviewed by Admin on Aug 5.Rating: 5.0NBFC : Provision as per RBI Direction Not AllowableIt has been held by Supreme Court that the provision...
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CBDT Disallows Expense on Freebies to Doctors by Pharma Companies !
CBDT Disallows Expense on Freebies to Doctors by Pharma Companies !Reviewed by Admin on Aug 3.Rating: 5.0Gift to Doctors by Pharma Companies Unethical & Illegal !CBDT has issued a circular stating...
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Can Loss in Commodities F & O Trade be Adjusted With Capital Gains ?
Can Loss in Commodities F & O Trade be Adjusted With Capital Gains ?Reviewed by Admin on Jul 28.Rating: 5.0Commodity Trading on MCX is Speculative Trade !Even after the recognition of MCX by CBDT...
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Is Foreign Tax Deductible Expense ??
Is Foreign Tax Deductible Expense ??Reviewed by Admin on Jul 1.Rating: 5.0Controversial Decision: Foreign Tax Deductible u/s 40(a)(ii)ITAT, Ahmedabad bench has held that the term "tax" as given in...
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