exemption

I had purchased a Residential Plot in Rs 210,000 in May 2003. I sold the plot in June 2008 in Rs 360,000.1. To calculate the capital gain. I need "cost inflation index" for year 2008-09. Has it been declared? If not then generally in which month is it declared by the government?2. I had also incurred cost on stamp duty plus 1% brokerage to the property consultant in 2003. Can I take this expense i

Today, we are going to discuss some forms of offering exemption. Some micro-cap companies want to offer or sell securities to the public. Not all companies will do that because there is one condition that companies should follow. Only companies that are registered with SEC have the only right to sell securities to [...]

On July 2nd, I published a response to a reader's questions concerning tax free income in Canada. I received a follow-up question from the writer yesterday concerning the lifetime capital gains exemption (LCGE).

We have recently sold long term property jointly owned by me & wife on 17 April 08 for 35 L worth. Property was held more than 5 years & involved LTCG of 12.2 L. Thereafter we purchased land for 13 L on 20 Jun 08 with my wife as 1st owner & self as joint. We also purchased commercial property worth 20 L owned by my wife only.Since we invested in other property more amount than LTCG, do

ISLAMABAD (June 26 2008): The Ministry of Information Technology showed its dismal over load shedding and frequent unannounced power outages, which are affecting productivity and damaging the sensitive IT equipment heavily dependent on smooth power supply, reliable sources confide to this scribe here on Wednesday. Secretary Ministry of Information Technology in a letter to Secretary Ministry [...]

According to the Center for Inquiry, Christian extremists are claiming success in intimidating college professors who have the nerve to expect their students to learn reality-based information. The right-wing American Center for Law and Justice (ACLJ) is bragging that they intervened to prevent a Christian student at Suffolk County Community College from receiving a failing grade from a professor

President Arroyo on Tuesday signed into law Republic Act 9504 exempting minimum wage earners from paying income tax and increasing personal exemptions for other employees.Under the new law, the tax exemptions will provide additional take-home pay of P34 a day or P750 a month for minimum wage earners. The new law also increases personal exemptions for salaried workers.All holiday, night differentia

Welspun Gujarath saw a big spike yesterday after the government decision on Export duty on steel came out , Government hikes the export duty on long steel products from 10% to 15% and has exempted flat steel products from export duty. The company was almost doing 4000 crore in export of Flat steel products , [...]

Suttabhai will be back to blogging full time from Monday 9th June. While May 2008 has proved to be the most disastrous month for the KSE-100 index in recent times, with the market getting gang-banged from 15,122 to 12,130, the news that CGT has been deferred for 2 years along with no change in CVT should [...]

State Securities Commission (SSC) proposed the finance ministry to exempt the CIT for securities companies that are established before the Law on Securities took effects on January 1, 2007. On November 23, 2007, the finance ministry issued Circular No 134/2007/TTCK-BTC guiding the implementation of Law on CIT.... [[ This is a content summary only. Visit my website for full links, other content,

The UK Right to Repair Campaign (UK R2RC) has welcomed the Commission’s statement that its evaluation of the operation of the automotive Block Exemption Regulation does not prejudge any decision on the future of that legislation. However, UK R2RC also said that parts of the Commission’s proposals would add uncertainty, and penalise the independent [...]

We have sold a old land long term asset and invested for the purchase and construction of a flat in a apartment in Bangalore, with the one year of sold of asset and claimed deduction u/s 54 f of income tax act, but later the builder is not completed the possession of the apartment within 3 years and still the apartment is under construction. as per the income tax law the period of 3 years is lapse

By Sheila Bingham An ag exemption on acreage can reduce your property taxes on rural property. One of the qualifications for a property to be tax exempt is that it is used for agriculture for at least five of the previous seven years. Other qualifications for an ag exemption are: 1. Land must be principally [...]

An ag exemption on acreage can reduce your property taxes on rural property. One of the qualifications for a property to be tax exempt is that it is used for agriculture for at least five of the previous seven years.  Other qualifications for an ag exemption are: 1.  Land must be principally devoted to agriculture. 2.  Land must be in agricultural use as of January 1. 3. 

I am about to purchase a part of house (Linter) in rural Himahcal Pradesh out of my long term capital proceeds. But as per the local by laws outsiders of Himachal cannot purchase such property in rural area... Only via media is that I get the same on perpetual lease (or 99 year lease).My question is weather the investment in the said house and expenses on construction the same to make it livable on the said leased property is allowable under 54F of the income tax act. Sulekha ,ShimlaSection 54F states that if sales consideration of a long term capital asset other than residential house is utilised for purchase or construction of a house , the exemption from tax is to the extent the sale consideration is used for such purchase. The issue whether the taking lease of 99 years constitute "purc

I have been allotted shares of an US company under ESOP scheme in 1996. these shares are not listed abroad. I have sold some of these shares in FY 05-06 and invested the consideration in a residential property. I have availed the exemption u/s 54F to the extent of amount paid to the builders in that FY. In the FY 06-07, i have sold further shares. Can i avail the exemption u/s 54F for the FY 06-07 for the same property towards the balance amount payable to the builder. Please advice. The option was provided to me in the sept 1996. the shares were vested within 6 months from the date of option. some shares were sold in the year 05-06 and the balance in March 07.My CA says that I can get the exemption u/s 54F against the same property for the balance payable. My friend's CA says that I can't

In most of the cases ,House Rent Allowance(HRA) is part of salary package .so exemption of Hra how to calculated is most of us is want to know infact most of person already know about HRA exemption,I am giving this to shares my understanding on the above issue which may be useful for many of this site visitors.if you have any different views or any point left in this post ,please record in the comment section.calculation of HRA exemption.least of following three will be exemptedHra received50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.rent paid in excess of 10 % of salaryother points to be notedSalary for this purpose meanBasic salaryDearness Allowance if terms of employme

Adding names to the ownership of your home normally does not change your $25,000 Homestead Exemption, BUT you may lose all or part of the protection your property receives from the Save Our Homes (SOH) assessment limitation or "cap". The...

Are there other ways of transferring my property for estate planning that will not disturb my Homestead Exemption or SOH Cap? Two methods of transferring your property will, in most cases, keep your Homestead Exemption and SOH intact: reserve a...

TDS under sec 194 J @ 10% is deducted from the salary even though it is below the taxable slab (135000 for women). would that money be refunded when the person files IT Returns at the end of the FY. Her gross anual salary is Rs. 120000. and what actually is this sec 194J. Vivek Agarwal , Bangloare Dear reader, you should know that the company is not treating you an employee but actually as a professional. This is the fashion these days to protect themselves from many labour laws. The youngsters do not understand this when they are appointed . youngsters think they are employees of the companyIncome tax law has provision u/s 194 J which provides that if professional or technical fee is paid in excess of Rs 20000 in a year, TDS @ 10 % plus surcharge and education cess has to be made by the payer. The lady in question may not have income more than Rs 1,35,000 , but the moment she is paid by her employer who actually has employed her not on salary pay roll but as a professional, TDS is

The assesse owns three residential properties. out of which he sells one residential property and invests the profit on sale of property in another residential property within two months of date of sale. Is the assessee liable to pay the long term capital gain? Jamuna ,Chennai Yes, you will get the exemption u/s 54 t the extent the capital gains is utilised. The provision u/s 54 is as under 54. (1)Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of a long-term capital asset , being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head Income from house property (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that d

DON’T FORGET TO FILE! You must reside in the Volusia County property you buy as of December 31st of this year and must file for homestead exemption prior to February 28th! When you file you must bring all of the requirements below for all owners appearing on the deed : Florida Voter’s Registration ( if you vote) Florida Drivers License ( if you drive) Florida Registrationfor car ( if you own a car) Recorded Warranty Deed for Property..not a copy, must have the raised seal! Current electrical receipt for service in your name prior to January 1st Social Security Number ( for all Owners) If you do not vote, drive, or own a car, a Declaration of Domicile can prove Florida residency. All applicants are required to sign the Application for Homestead Exemption. If you have any questions about where or how to file, contact the Property Appraiser’s Office at 386.254.4601. Their address is 250 N. Beach Street, Daytona Beach, FL 32114. Call Marty Gagliardi at 386.316.5968,&nbs

If you are thinking about selling your house but are concerned about the capital gains tax you may have to pay on profit made from sale then there is some good news for you. You might not have to pay any tax on the profit made if certain conditions are fulfilled. In the following sections we will look at how you can retain the total amount of profit made from sale of your house without having to pay any taxes. When a person sells his house and makes a profit then this profit can be exempt from taxes up to the maximum exemption limit of $250,000 if: He meets the use of house requirement and The ownership requirement, and also Had not used capital gains tax exemption in the last two years before the house is sold. The exemption limit is $500,000 if: The seller is married & files a joint return and Both he and his spouse meet the use of house requirements and Either he or his spouse meets the ownership requirement, and lastly Neither

For the Assessment year 2005-06, I was a full-time PG student with zero income. I had won a prize of Rs 30K in a quiz competition on which a TDS of Rs 9180 was collected. After filing for TDS refund,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

The exemption from the service tax net may lead to a rise in buyers’ purchasing power. Investors also predict the possibilities of a downslide in property prices. However, builders have mixed responses; most of them share the investors’ notion. The city builders had not loaded the service tax on the existing property rates. Hence, the service tax is not likely to affect the property rates, feel construction majors. Upholding the argument, Mr. S.R Kulkarni, President of Marathi Bandhkam Vyavasayik Sanghatana comments that the property buyers generally calculate the possible service tax they might be require paying in future. However, experts predict the service tax to break property prices as it was too high at 12.5% of the value of agreement minus the cost price of land. Paying such a prohibitive tax will certainly influence buyers’ budget. The service tax for the flat with a price tag of Rs 30 lakh is estimated to be over Rs 5 lakh. Most builders are thinking to take an undertak

Whether HRA exemption and housing loan rebate can be claimed together. Prashant P.Damani Yes, both can be claimed , but in some special circumstances. For claiming HRA exemption under the I T Act,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Is the non tax payments limits applicable to non resident? I am an NRI senior citizen and my gross income is my pension in India .It is less than Rs 1,85,000.Do I have to pay tax for Asst Yr... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Governor Strickland and The Ohio General Assembly have expanded the Homestead Exemption Tax. You may not have been eligible before but may now meet the requirements. Are you 65 ?Are you disabled?If you answer yes to either question, you may now qualify. Because the income limits have been eliminated.It could reduce your property taxes up to $400 a year. I mention this now because the deadline for applying for a Homestead Tax Exemption is October 1, 2007. Believe it or not, October is not that far away. You will ultimately be applying through your local county auditor. There is a directory of all county auditors and forms you can download at the Ohio Department of Taxation website. If you already qualify, no worries, the new rules will automatically keep you in the program.You can find out more information two ways -On line at Ohio Department of Taxation or by calling them at 800-282-1780.In Cuyahoga County, you can contact the Auditor's Office on line or by calling 216-443-7010Peac

I am working in an MNC and I have paid tax of 24,000 in the Financial Year 2005-06. I had actually made investments worth 90,000 before 31st March for which I didn't claim deduction. When I filed the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

I am a lady and an NRI . I have a property in India from which I have rental income of Rs.1.5 lakhs per annum. What is 1. Tax liability?2. I am supposed to pay tax on income after availing exemption... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

The Bottom Line: The Ohio Homestead Exemption is now available to all qualifying residents regardless of income. Click Here to Download What is it? The Homestead Exemption allows senior citizens and permanently and totally disabled Ohioans to reduce their property tax burden by shielding some of the market value of their home from taxation. The exemption, which takes the form of a credit on property tax bills, allows qualifying homeowners to exempt $25,000 of the market value of their home from all local property taxes. For example, through the Homestead Exemption, a home with a market value of $100,000 would be billed as if it is worth $75,000. The exact amount of savings will vary from location to location. But overall, across Ohio, qualified homeowners should save an average of about $400 per year. How has the Homestead Exemption changed? Starting July 2, 2007, the Homestead Exemption is now available to all Ohio homeowners, regardless of income, who are either age 65 or olde

STUART Appleby showed his best form since leading the US Masters into the final round with an opening round of four-under par 66 in the PGA National at Congressional Country Club. The Australian has some quality company, with Jim Furyk, KJ Choi, Vijay Singh and Joe Ogilvie all matching his score in a five-way tie for the lead. While tournament host Tiger Woods bogeyed four of his last six holes for a 73 in his first round as a father, Appleby went the other way. After teeing off at more…

I have an apartment in Bangalore. I bought it in Sept. 2001 but got the possession in Jul, 2002. I purchased it around 21L but the current market price is almost double. I plan to sell it and invest the same amount in a commercial property. Going by the Cost Index, I might have to pay 3.2L tax after I sell my property. Since I am investing almost all the amount in another commercial property, will this help to save my tax when I sell the apartment? Please advise. kumaranuj_007@hotmail.Unfortunately, the exemption provided under section 54 of the I T Act is not for investment in commercial property. This exemption is exclusively for the reinvesting the sale proceeds out of a residential property in another residential property. Read the extract of section u/s 54 , specially words in red54. (1)Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital as

Schools districts designated as "high-performing" would be exempt from state rules regarding the development of reading plans, certain program spending, portable classrooms, and instructional material choices, under a bill (SB 574) that passed the Senate Tuesday and the House Monday. The exemption would apply to districts that earn an "A" grade from the state two years in a row starting, have no F-rated schools, meet class size requirements, and have clean audits. No Tampa Bay districts currently meet those standards. The bill, sponsored by Republican Sens. Mike Bennett and former Okaloosa schools superintendent Don Gaetz, also allows high-performing districts to use their discretionary two mills in ad valorem taxes for property and casualty insurance. "We have said time and time again that we need to think outside the box ... in public education," said Sen. Jim King, R-Jacksonville. - Shannon Colavecchio-Van Sickler, higher education reporter

Is there a limit to the number of residential properties that a person can invest in for claiming exemption u/s 54F?For eg: If a person is selling jewellery (long term), and buying two residential houses. At the time of transfer, the person already owned one residential house. Can he claim exemption u/s 54F for both the houses? maya.nair@............netNo, the language used in Section 54F makes it clear that a person can not purchase more than one residential house within one year from the date of sale of the asset. Opening lines of Section 54F has used word "a residential house" as given under"54F. (1) 49[Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or 50[two years] after the date

I have taken a house on rent in a city different from where I am residing/working. Can I claim HRA exemption. nagarajan_v2@rediffmail.comThe answer to your question should be purely on facts of the case. The HRA is given as per policy of the organisation or company you are working .However, exemption allowed u/s 10(13A) is allowed only if following conditions are fulfilled :Rent should be Paid. Rent receipt is an evidence.The assessee should stay in the house for which rent was paid.If the aforesaid conditions are fulfilled , the amount of exemption shall be computed according to the formula given in Rule 2A. For details regarding the formulae of computation, click here.Since , you have taken a house in a city different than your working city, evidence has to be produced that your family are staying there and why you are compelled to take the house elsewhere. The A.O has to satisfy himself regarding the truth in your statement. In my opinion, if your case falls under scrutiny , then

I will return to India for permanent settlement in June 2007.Am I exempted from wealth tax for the next seven years?Please explain the existing wealth tax rule for bank deposits. purackal@hotmail.comSection 5 of the Wealth Tax Act is regarding the exemption granted to certain types of case. Sub-section (v) of section 5 deals with the cases of Non resident or Person of Indian Origin returning India with the intention to settle permanently in India. The provision is clear and given as under"in the case of an assessee, being a person of Indian origin or a citizen of India (hereafter in this clause referred to as such person)] who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys within one year immediately preceding the date of his return and at any time there after:

I had purchased a plot in Greater Noida in 1997 from a developer. I paid full consideration and the possession was taken in Oct 2003. Got the same registered in my name in April 2005.I want to sell the plot and buy a big size apartment for my family . When can I sell the same and buy an apartment for me and get the benefit of LTCG. Is it now or after April 2008 ?I also own one apartment in joint name with my wife in NOIDA . Will it come in way of claiming section 54 benefit when I sell the plot to buy big size apartment.Please advise me on Tax issues involved and most appropriate course of action.rajesh.chopra@db.comIf you paid full consideration and taken possession in 2003 , even without registration, the land if sold after 2006 , shall be treated as Long Term Capital Gains. You need to read this .Since you will be selling Land , you can claim exemption u/s 54F under which if you have more than one house on the date of purchase of new home, then only you are not eligible for exempti

I have purchased commercial property 1999. sold commercial property 10.1.2007. Claimed depreciation.Since claimed depreciation Whether it become long term or short term capital gain. Whether i can get benefit investing in REC Bond. Whether i can keep deposit in capital gain Bank till 6 month from the date of sale and invest in property in next financial year. salian@vsnl.comSince you have claimed Depreciation on the commercial property , you must have business income.In that case, any gain on the sale of the commercial property is a short term capital gain. This is by virtue of section 50 which is special provision in case of computation of capital gains on Depreciable assets.The section 50 is as under :"50. Notwithstanding anything contained in clause (42A) of section 2, where the capital asset is an asset forming part of a block of assets in respect of which depreciation has been allowed under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), the provisions of sectio

I have purchased commercial property 1999. sold commercial property 10.1.2007. Claimed depreciation.Since claimed depreciation Whether it become long term or short term capital gain. Whether i can get benefit investing in REC Bond. Whether i can keep deposit in capital gain Bank till 6 month from the date of sale and invest in property in next financial year. salian@vsnl.comSince you have claimed Depreciation on the commercial property , you must have business income.In that case, any gain on the sale of the commercial property is a short term capital gain. This is by virtue of section 50 which is special provision in case of computation of capital gains on Depreciable assets.The section 50 is as under :"50. Notwithstanding anything contained in clause (42A) of section 2, where the capital asset is an asset forming part of a block of assets in respect of which depreciation has been allowed under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), the provisions of sectio

No exemption from gay rights law - Downing Street announces there will be no exemption from gay rights laws for Catholic adoption agencies. [BBC News] I've been following this story with a fair amount of interest recently and I have to say I'm baffled by it. Apart from my personal belief that gay couples should not be adopting at all, a more objective viewpoint shows me that this simply isn't what the people want. For a start, the three major religions in the country have all asked that Catholic adoption services be exempted from anti-discrimination laws. read more

As expected,after hearing the news last night re: the exemption of capital gains tax to be deferred till July 2008, the Karachi Stock market opened with a full erection this morning. This is the best news this market has received in some time and there is talk of lowering the CVT by half. While there were many gains across the board , only NBP, OGDC, MCB and Askari Bank really went up. OGDC finally moved after being stagnant for nearly a month  and the KSE-100 index has finally closed above its 30 DMA after nearly 3 weeks. The market should test 10,500 soon. News : The government will hold a public offering for Oil and Gas Development Co Ltd (OGDCL), the country’s largest listed firm, at a price of 110 rupees per share this week, the government said on Tuesday.Up to 21.505 million shares will be offered in lots of 500 in what would be the second public offering for the state-run company, the Privatisation Commission said in a statement."The subscription for the retail

News has just come in that the Prime Minister has extended the capital gains tax exemption for the Karachi Stock market for another year until July 2008. It was meant to be implemented this July after the budget this year. It should give this weary market a welcome boost, removing one of the 2 expected hurdles for 2007 (the other being uncertainity at election time at the end of the year).

Name: PriyaMessage: Dear Sir: I have completed PGDBA through distance education in Symbiosis. I am planning to claim an exemption from ICWAI papers based on this. However, they would like to know 1. If PGDBA is equivalent to MBA 2. If the course is AICTE recogonized.

Can I claim deduction for HRA for apart of the year and interest on housing loan for the rest of the year. If the house is rented for the year, can I claim HRA for the whole year. Further can I claim Interest on housing loan as a deduction from my rental income. neeluraideva@yahoo.com Yes ,a person can avail both , if he satisfies conditions of both the provisions. For claiming exemption on HRA foremost condition is that the assessee should pay RENT, only then one can claim exemption from HRA u/s 10[13A] of the I T Act read with rule 2A of the I T Rule.If you pay rent for whole year , you can claim exemption for the whole year. If you have paid for part of the year , you will get even then exemption. Deduction of interest on loan is allowed only in three case Tthe property is given on rent. The property is self occupied The property could not be self occupied on account of service/occupation, one can not live in the house.So in case , you have taken loan for a house or flat which is

Can I claim deduction for HRA for apart of the year and interest on housing loan for the rest of the year. If the house is rented for the year, can I claim HRA for the whole year. Further can I claim Interest on housing loan as a deduction from my rental income. neeluraideva@yahoo.com Yes ,a person can avail both , if he satisfies conditions of both the provisions. For claiming exemption on HRA foremost condition is that the assessee should pay RENT, only then one can claim exemption from HRA u/s 10[13A] of the I T Act read with rule 2A of the I T Rule.If you pay rent for whole year , you can claim exemption for the whole year. If you have paid for part of the year , you will get even then exemption. Deduction of interest on loan is allowed only in three case Tthe property is given on rent. The property is self occupied The property could not be self occupied on account of service/occupation, one can not live in the house.So in case , you have taken loan for a house or flat which is

kalpanasundar@......com Asked: Thanks for this very useful forum and your work is really laudable.I had sold some land and so to save tax on capital gains I invested the said amount in REC bonds. It is just 6 months since I made the investment. Now for personal reasons I am in need of some money. Can I apply and get a loan from some bank with these bonds as collateral ? I have done that before using GOI bonds, stocks etc. Somebody told me that the investment made in those bonds will not be eligible for tax deduction if we raise a loan on them. Is this true ? Kindly clarify.Regards,Kalpana. Kalpana, if you take loan by keeping the REC Bond as collateral, your tax exemption will go. Read carefully Explanation given under section 54EC(2) of the I T Act which clearly states that you will lose exemption from capital gains in case you take loan or advance on security of REC/NHAI bonds(specified bonds) "(2) Where the long-term specified asset is transferred or converted (otherwise t

akgupta21@yahoo.com Asked I worked till NOV 2006 in a Govt Sector and then join a PSU.I worked for 21 days in that PSU.The same PSU sent me on secondment to other country say Afghanistan and paying me salary in India.I joined in foreign country on 22.12.06.My question is:Whether I will have to pay I.Tax for the period I have been in Afghanistan?If yes.How to take HRA Deduction etc for period I have been in Afghanistan,as my family is staying in Delhi?If I return after finishing my term of deputation in December/ January,what will be the tax component for the remaining period of Financial year.Please clarify?First question -yes your salary earned in Afganistan shall be taxed. Reason is that you have spent more than 182 days in India during FY 2006-07 , so you are resident . A resident's global income is taxable under the I T Act. Hence salary received from anywhere , whether in India or Outside India , shall be taxable in your case . As far as HRA is concerned , the payment of

Mr. X, who purchased a site in Bangalore 20 years back, sold it in 2006 for a good sum and got long term capital gain. He has no residential House. He was living in the house owned by his wife. Out of the capital gain, he purchased a flat in Bangalore and occupied it for his own residence. After a month or so, he purchased another flat from the balance capital gain. Are these two investments qualify for exemption from Long term capital gain tax? nanaiahcs@....com Under the I T Act, section 54F provides exemption of capital gains tax on long term asset (other than residential house) if the sale consideration is invested in residential house.Mr X has sold the land and invested in two properties -residential houses.Unfortunately in that case , the same section 54 under Sub section 2 provides as follows:"(2) Where the assessee purchases, within the period of two years after the date of the transfer of the original asset, or constructs, within the period of three years after such date, a

let us take example. Mr. X, a Non Resident had acquired a property in India. He left India and settled in USA. After twenty years, he sold the property in India for a huge sum. He wants to save on LTCG tax by purchasing a residential house , so that exemption from LTCG u/s 54 can be claimed. So, he purchases a house in USA Now question arises whether purchase of a house outside India makes him eligible to claim exemption u/s 54 of the I T Act? In my opinion, Yes . The purchase of property outside India also makes a Non Resident eligible for exemption u/s 54 of the I T Act .The reasons are as follows: Section 54 is applicable to both Resident and Non Resident equally.The house property should be purchased. There is no restriction that the purchased house should be India only. The Mumbai Tribunal judgment in case of Mrs. Prema P Shah vs ITO 282ITR (AT)211 [2006] is significant in this regard. In fact , this order of Tribunal not openly confirmed that the exemp

akgupta21@yahoo.com Asked I worked till NOV 2006 in a Govt Sector and then join a PSU.I worked for 21 days in that PSU.The same PSU sent me on secondment to other country say Afghanistan and paying me salary in India.I joined in foreign country on 22.12.06.My question is:Whether I will have to pay I.Tax for the period I have been in Afghanistan?If yes.How to take HRA Deduction etc for period I have been in Afghanistan,as my family is staying in Delhi?If I return after finishing my term of deputation in December/ January,what will be the tax component for the remaining period of Financial year.Please clarify?First question -yes your salary earned in Afganistan shall be taxed. Reason is that you have spent more than 182 days in India during FY 2006-07 , so you are resident . A resident's global income is taxable under the I T Act. Hence salary received from anywhere , whether in India or Outside India , shall be taxable in your case . As far as HRA is concerned , the payment of

Mr. X, who purchased a site in Bangalore 20 years back, sold it in 2006 for a good sum and got long term capital gain. He has no residential House. He was living in the house owned by his wife. Out of the capital gain, he purchased a flat in Bangalore and occupied it for his own residence. After a month or so, he purchased another flat from the balance capital gain. Are these two investments qualify for exemption from Long term capital gain tax? nanaiahcs@....com Under the I T Act, section 54F provides exemption of capital gains tax on long term asset (other than residential house) if the sale consideration is invested in residential house.Mr X has sold the land and invested in two properties -residential houses.Unfortunately in that case , the same section 54 under Sub section 2 provides as follows:"(2) Where the assessee purchases, within the period of two years after the date of the transfer of the original asset, or constructs, within the period of three years after such date, a

let us take example. Mr. X, a Non Resident had acquired a property in India. He left India and settled in USA. After twenty years, he sold the property in India for a huge sum. He wants to save on LTCG tax by purchasing a residential house , so that exemption from LTCG u/s 54 can be claimed. So, he purchases a house in USA Now question arises whether purchase of a house outside India makes him eligible to claim exemption u/s 54 of the I T Act? In my opinion, Yes . The purchase of property outside India also makes a Non Resident eligible for exemption u/s 54 of the I T Act .The reasons are as follows: Section 54 is applicable to both Resident and Non Resident equally.The house property should be purchased. There is no restriction that the purchased house should be India only. The Mumbai Tribunal judgment in case of Mrs. Prema P Shah vs ITO 282ITR (AT)211 [2006] is significant in this regard. In fact , this order of Tribunal not openly confirmed that the exemp

I recently returned to India in April 2006 after spending 9 years in the US. For the year 2006-07 I will have to file tax returns in India. During my stay in the US I bought some stock of a company listed on the NYSE. I bought this stock about 3-4 years ago. Now I plan to sell this stock and will have the proceeds from the sale remitted to my Indian account. Lets assume I sold 100 stocks at a profit of $10 per share. That would mean my income will be $1000. My question is :what is the tax I need to pay on this sale? Since this is long term capital gain will the tax be zero? I don't know the rule for foreign stock transactions. I will be on RNOR status for 2006-07. nitish@hotmail.comIn my opinion, since you will be Resident But Not Ordinarily Resident during the year of sale of the NYSE listed share, any gain arising outside India and received outside India , shall not be taxable in India. Important to note that income received in India is TAXABLE in India irrespective of the fact whet

Can a residential property be purchased by 3 members of the family in equal ratio, if yes, will any liability arise for Income Tax & Wealth Tax purpose if they own residential property in their individual names and they sell off their residential property within a year of purchase? i.e. all Individuals own residential property in their own name and now they want to own, one combine big residential property in equal ratio and they would sell off their residential property within a year. desaiashit2000@...................in Yes they can ,They can avail the exemption u/s 54 if all of them have joint and fixed ownership of the property. Section 54 which gives exemption shall be applicable according to their expenditure in the new house property . Read the Section 54 carefully and take full benefit out of it "54. (1) Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of

Mr XYZ sold a house which was in solely in his name. To save capital gain tax, Mr XYZ deposited money in the capital gain account with a bank.Now Mr XYZ wants to buy a house, in which the first owner is the daughter in law of Mr XYZ and the second owner is the wife of Mr XYZ. Both daughter in law and wife are housewives.The query is: If Mr XYZ invest the money (which he got by selling the above property) in the house that will be in the name of daughter in law and wife. Will Mr XYZ get benefit under IT Section u/s 54 & 54A—G or any other section. Kindly give the various tax implication rajat_agarwal_imt@yahoo.comNo, XYZ will not get the exemption if he purchases the house in his relatives' name. Moreover, there is clubbing provision of income u/s 64 of the I T Act. In case , those relatives gives the house on rent, the income shall be taxable in the hand of XYZ by virtue of section 64 of the I T Act. You should read more about clubbing in another question answered by me .Here

California state Senator Dean Florez has introduced a bill to repeal the the San Joaquin Valley Unified Air Pollution Control District's exemption from state emissions tests for vehicles made before 1976. The District includes eight counties in California's Central Valley, which are home to a number of now highly pissed-off tuners, hot-rodders and retro gearheads who are mobilizing to fight the new restriction. The usually apolitical Hot Rod magazine blog has posted an action alert by aftermarket industry association SEMA, urging fans of malaisemobiles and other oldtimers  to contact their representatives and protest this proposed law. Asserting that "Pre-1976 vehicles constitute a small and shrinking portion of the overall vehicle population in California and a

Everyone who owns their home here in Boston AND occupies it as their primary residence is eligible for the Boston Residential Exemption. For 2008 the Boston Residential Exemption is $1,488.57 which means no matter how much your tax bill is you can subtract $1,488.57 right off the top! Who can ...