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Tax Planning & Help
Tracked by: 0 Boarder
Dear biharilalgm, The answer of ur question is itself in ur query. U r already aware, LTCG Tax is tax free for shares listed on exchanges. In ur case, SSDDB r bonds not shares, hence these bonds don\\`t qualify for Tax free LTCGs under sec. 10(38).
Plz. note, the CII for current FY had been notified by the Govt. of India. Plz. take notice of the same & calculate ur LTCGs accordingly. I already mentioned in my prev. post to u, LTCGs with out indexation \\`ll be more tax friendly to u.
thanks
Ashal...
In reply to:
Taxation OF SARDAR SAROVAR BONDS
Posted by :
biharilalgm
28.08.2008.
Many many thanks for your reply to my question. However ,SSDB, are listed on BSE and it is a long term capital gain, will it not be exempt from capital gain tax ,like other shares and securities ? Kindly reply and oblige. thanks, Biharilal Mehta. 
Tracked by: 0 Boarder
28.08.2008.
Many many thanks for your reply to my question. However ,SSDB, are listed on BSE and it is a long term capital gain, will it not be exempt from capital gain tax ,like other shares and securities ? Kindly reply and oblige. thanks, Biharilal Mehta. ...
In reply to:
Taxation OF SARDAR SAROVAR BONDS
Posted by :
ashalanshu
Dear biharilalgm, The SSDDB r listed on BSE. If u sell ur DDBs now on BSE, The LTCGs 'll accrue to u. Hence u can pay tax either @ 10.3% w/o Indexation, or 20.6% with indexation. U can opt any way which bring down ur tax liability. Ur LTCG tax calculation 'll be as under -
A. Purchase Cost in 1993-94 = 3600
B. Cost Inflation Index of 1993-94 = 244
C. Cost Inflation Index of 2008-09 = it is yet to notify by the Govt. of India but for sake of calculation i'm taking it as 590, please replace it as when actual CII for current year is notified.
D. Indexed Purchase cost = A*C/B = 3600*590/244 = 8705
E. Sell price = 50000
F. Indexed LTCG = E-D = 41295
G. Tax on indexed LTCGs = 20.6% of F = 8507
H. Unindexed LTCGs = E-A = 46400
I. Tax on Indexed LTCGs = 10.3% of H = 4779
From the above calculation, it is clear that unindexed LTCGs tax is lower for u in this case. so opt for the same.
Thanks
Ashal
Tracked by: 1 Boarder
Source: ET
Mayawati enters Forbes power women list; Sonia slips in rank
NEW YORK: Making her debut in the club of 100 most powerful women in the world, Bahujan Samajwadi Party chief Mayawati has joined Congress President Sonia Gandhi in a list compiled by US magazine Forbes.
While Gandhi, also chairperson of the country's ruling UPA alliance, has slipped from her previous year's sixth rank to 21st this year, Uttar Pradesh Chief Minister Mayawati has made her debut at 59th.
The list also includes Indra Nooyi, the Indian-origin chief of global soft drink major PepsiCo, at third position, up from fifth last year, and Indian biotechnology firm Biocon's Chief Kiran Mazumdar Shaw at 99th.
The list has been topped by German chancellor Angela Merkel.
On Gandhi, the magazine said the Italian-born leader of India's most powerful political party has by now assumed the role of elder stateswoman.
"Although she remains firmly at the head of the country's ruling party, a rising star, known by the single name Mayawati, is challenging Gandhi's position as the country's most powerful woman."
Mayawati-led BSP recently withdrew its outside support to Gandhi-led ruling combine in the country.
The magazine said that Mayawati has aligned herself with the nationalist Hindu BJP party and joined its members in vociferously opposing Gandhi's party's historic agreement with the US on nuclear cooperation.
The magazine described Mayawati as the one "in the running to be prime minister, from her perch as chief minister of Uttar Pradesh, India's most populous state." ...
In reply to:
Mayawati is the highest tax paying
Posted by : Sriman35
PS: I dont like Mayawati, not even 1%.
Radhika ji,
Don’t you think we have to appreciate Mayawati, that she is paying taxes now, that too at the top of list. Take the case of Ambani brothers, who are among top 5 richest people of India, but not even in top 200 list of tax payers.
Appreciate if you could have opened a thread on why Ambani's are not highest tax payers..!
Some of your points mentioned in the first post are pretty low on values, at least the below.
'Is she some young s-- bomb that folks should gift her such?'
You mean to say that young s-- bombs deserve that kind of money. Pls have a second look. Many of those young s-- bombs are like that out of necessity or compulsion.
Timepass:
‘Is she an entertainer NO NO NO ..’
Mayawati certainly is an entrepreneur if not entertainer. For me it is both. ;)
Tracked by: 0 Boarder
Go for ARBITRAGE funds. It will give you an 8% return without much risk. It is tax free. You can invest in your own name. ...
In reply to:
Income Tax On Fixed Deposite
Posted by : Guest
Dear Sir,
I am salaried person of a PSU and Tax payer in the bracket of 30%.
I want to invest Rs 50000/- in fixed deposite in view of increased interest rates.
However, to save the tax on the interest earned on proposed Fixed deposite, i want to buy it in the name of my spouse who is a house wife and have PAN Card.
So i am planning to buy the FD in her name for a period of one year and submit her IT return as individual.
I request you to kindly advise me whether it is allowed as per Income Tax Act.
Regards
Sanjeev
Tracked by: 0 Boarder
This is comman problem. This friend does not want to pay tax.
He wants to save for the future. He wants to get decent income on his hard earned money.
Here come tax problem. He wants to be sure before investing if the investment attracts tax or not.
Now in what way the govt encourage genuine person like this one.
On the other hand, we have traders,business people who show low sales figures and escape tax. How many of them give proper receipts?
Farmers have escaped with the loan waiver. Businessman know ways to escape. This investor wants to invest/deposit in bank FDs.
...
In reply to:
Income Tax On Fixed Deposite
Posted by : ashalanshu
Dear friend, As u told, u r in 30% Tax slab, I assume to avoid Tax on FD interest, u r planning to invest in ur wife's name. My dear friend Tax evasion is not legal.
My dear friend, u can't avoid it, as the income generated from any cash amount gifted to spouse, 'll be clubbed with income of original person whose money was it, Under clubbing of income provisions of Section 64.
If u do want to take benefit of high interest rates with low tax on it, plz. invest in FMPs (Fixed maturity plans) of MFs of duration 1Y & more.
Due to indexation benefit, ur net tax liability on gains from such FMPs 'll be far less than what u 'll pay as tax on bank FD interest.
Thanks
Ashal
Tracked by: 0 Boarder
Dear friend, As u told, u r in 30% Tax slab, I assume to avoid Tax on FD interest, u r planning to invest in ur wife's name. My dear friend Tax evasion is not legal.
My dear friend, u can't avoid it, as the income generated from any cash amount gifted to spouse, 'll be clubbed with income of original person whose money was it, Under clubbing of income provisions of Section 64.
If u do want to take benefit of high interest rates with low tax on it, plz. invest in FMPs (Fixed maturity plans) of MFs of duration 1Y & more.
Due to indexation benefit, ur net tax liability on gains from such FMPs 'll be far less than what u 'll pay as tax on bank FD interest.
Thanks
Ashal ...
In reply to:
Income Tax On Fixed Deposite
Posted by : Guest
Dear Sir,
I am salaried person of a PSU and Tax payer in the bracket of 30%.
I want to invest Rs 50000/- in fixed deposite in view of increased interest rates.
However, to save the tax on the interest earned on proposed Fixed deposite, i want to buy it in the name of my spouse who is a house wife and have PAN Card.
So i am planning to buy the FD in her name for a period of one year and submit her IT return as individual.
I request you to kindly advise me whether it is allowed as per Income Tax Act.
Regards
Sanjeev
Tracked by: 1 Boarder
Dear b prasad, No matter ur child is a daughter or a son, Ur HUF was already formed by the day u married. What u r asking for, "I wish to know whether i can form a HUF or not?" is simply to form capital in ur HUF.
As HUF is a virtual Tax identity, there can't be any blood relatives of an HUF. Hence zero Tax on Gifts received from Blood relatives can't be claimed. For first year, as no capital is there, no income 'll accrue to HUF, hence in first year, u may receive a maximum of 2.5L Rs. as gift from ur near & dear ones. out of this 2.5L Rs. invest in 80C instruments, mainly ELSS to get money early as lowest lock in period is there of 3 years. After investing in ELSS, ur HUF's net taxable income 'll be 1.5L Rs. only in the current FY. It 'll be fully tax-free.
For every following year, receive Cash gifts only upto the limit that HUF's total income from other taxable sources & gift remains under 2.5L Rs.
One interesting part is, ur HUF may receive gifts in kinds of any valuation from ur near & dear ones. For example u open a demat acct. in ur HUF's name. Now ur relatives & friends gift ur HUF, Eq. shares worth of 20L Rs. under gift. Ur HUF may sell these shares immediately to have liquid cash. The most interesting part of this, "Gift in Kind" strategy is ur HUF can claim tax free LTCGs for these Eq. shares, if the total holding period of these shares including original holder's (the doner) holding period is more than 1 year & shares r sold thru Stock exchanges & STT is paid on sell.
I hope the above info may be of ur help. Plz. contact on my personal mail ID (available on my home page) if u need more help.
Thanks
Ashal...
In reply to:
HUF formation
Posted by : Guest
i have a small family with my wife and a daughter. I wish to know whether i can form a HUF or not? Also how can i create capital in the HUF - if by gift proceeds from near and dear ones, what will be the tax implications for the same.
b prasad
Tracked by: 0 Boarder
Dear sankara1970, In case of debt funds, the Dividend distributed by funds is Taxed @ 14.25%.
If u opt for growth option, The Gains if any (for less than 1 year holding STCG & for more than 1 year holding LTCG) r taxable.
STCGs r to be added to ur income from all other sources & 'll be taxed accordingly.
LTCGs r taxed either 10.3% without indexation or 20.6% with indexation.
Now as per ur query, let's assume ur income from salary, interest, rent etc. is only 80K Rs. & ur age is below 65. Now ur gains (STCG as well as LTCG) in the FY r 60K. Ur tax liability calculation 'll be like this -
A. Income from salary, rent, interest = 80000
B. Income from Capital gains = 60000
C. Total income liable for tax = A+B = 140000
In the above example as the total taxable income is below the zero tax limit of 1.5L for under 65 age male individual tax payer, There 'll be no tax liability on gain amount from sale of debt MFs units.
Thanks
Ashal...
In reply to:
Tax impact on debt funds
Posted by : sankara1970
When we invest in debt funds or balanced funds, tax is payable even if the income for the year is below taxable limit?
Tracked by: 0 Boarder
When we invest in debt funds or balanced funds, tax is payable even if the income for the year is below taxable limit?...
Tracked by: 0 Boarder
Dear Ashal - Many thanks for sending your inputs....
In reply to:
Capital Gain on Property
Posted by : ashalanshu
Dear jasper, Although i don\\`t have right now with me the exact details of some recent judgements of Honourable Supreme Court & various High courts (In terms of Case Nos., year of J\\`ment, respondents etc.), the moot point of all such j\\`ments was, The rights of ownership \\`ll be calculated from the date of making considerable & adequate payment to purchase the property (normally it relates with the date of registration of property).
In such j\\`ments, the h\\`ble courts observed that, during prolonged delay of possession (for any reason), The rights over the property were with the purchaser & delay of actual possession was simply the delay in actual use of property not delay in its ownership.
So u may consider ur date of registration for capital gains purpose.
Thanks
Ashal
Tracked by: 0 Boarder
Dear sharepunt, I'm not a guru on Tax matters. The TAX guru is respected Subhash Lakhotiaji. Even here @ MMB, Dear Subasu is more competent than me.
For ur query -
As u r NRI, in case of ur investment in DEBT/FMPs, the MFs 'll applied the TDS & 'll issue the Form 16A for the same.
As u don't have any other resident indian income (salary, rent, interest etc.), first u can claim the zero tax exemption limit of 1.5L for non Sr. Citizen or 2.25L for Sr. Citizen as the case may be. even if there is any more income from STCGs or LTCGs of debt/FMPs, u can still sat off ur 80C investment against such income.
To claim ur refund, yes u 'll have to file ur returns.
Thanks
Ashal
...
In reply to:
COST INF. INDEXFOR FY 08-09 NOTIFIED
Posted by :
sharepunt
Dear Ashal
Pls help me with this.You seem to be a GURU in taxation.
I am a NRI want to invest in DEBT/FMPs.Pls advise the Tax on STCG ( 30%) & LTCG (20%) whether will be deducted at source.
Since I am a NRI, I dont have resident income, so in that case can i File IT return and claim refund for the STCG & LTCG amount if interest income is less than the taxable income.
Pls advise.
Tracked by: 0 Boarder
Dear jasper, Although i don\\`t have right now with me the exact details of some recent judgements of Honourable Supreme Court & various High courts (In terms of Case Nos., year of J\\`ment, respondents etc.), the moot point of all such j\\`ments was, The rights of ownership \\`ll be calculated from the date of making considerable & adequate payment to purchase the property (normally it relates with the date of registration of property).
In such j\\`ments, the h\\`ble courts observed that, during prolonged delay of possession (for any reason), The rights over the property were with the purchaser & delay of actual possession was simply the delay in actual use of property not delay in its ownership.
So u may consider ur date of registration for capital gains purpose.
Thanks
Ashal ...
In reply to:
Capital Gain on Property
Posted by : Jasper
Dear Ashal,
Kindly inform that from which date is the purchase of my flat considered valid. From the time of booking, from the time of registration or from the date of possession letter received. As this shall help me calculate whether it will be a short term or long term capital gain as the time from when I booked the flat to the time I will receive possession is spread on 3 yrs gap.
Thanks....Jas
Tracked by: 1 Boarder
i have a small family with my wife and a daughter. I wish to know whether i can form a HUF or not? Also how can i create capital in the HUF - if by gift proceeds from near and dear ones, what will be the tax implications for the same.
b prasad...
Tracked by: 0 Boarder
Dear Ashal,
Kindly inform that from which date is the purchase of my flat considered valid. From the time of booking, from the time of registration or from the date of possession letter received. As this shall help me calculate whether it will be a short term or long term capital gain as the time from when I booked the flat to the time I will receive possession is spread on 3 yrs gap.
Thanks....Jas ...
Tracked by: 0 Boarder
Trust have not deducted T.D.S on Rent payment, but Trust is exempted from payment of Tax if 85% of revenue have been spend for the purpose of trust.
How 85% is arrived at
Is it dis allowance of rent income (as T.D.S is not deducted on it) will be considered as application of income?...
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