River Of Blogs

Under section 8(1) of the Central Sales Tax Act 1956 an Interstate sale to a registered dealer can be made at the concessional rate of Central sales tax i.e. @2% existing at this time. But for claiming concessional rate of CST the seller needs to...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Calculation of Income Tax is difficult jOB for normal person, the reason is that Normal person have Little knowledge of Income Tax Rates and changes.But for professionals persons Like me also ,its difficult to write the lengthy formula again and again.or even if we are coping the same from some...

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Get Paid Every 30 Seconds; Apply PAN Card Online; Re.1 Computer Service; Free 1 acre ET Land · Earn Money Reading SMS; Online Ration Card Support; India Property Guideline Value; Instant Data Entry Typist · Instant Google Adsense @ 25$ ...

ID proof : Pan card/ Passport/c Driving License Signature Proof : Pan card/ Passport/Driving License Age Proof : Pan card/ Passport/Driving License/DOB Certificate Residence Proof : Passport/ Voter Card/Driving License/Ration Card/ ...

We have heard the arguments put forth by both the sides along with the case law relied upon. Having held above that the interest on income-tax refund does not fall under the head `Profits and gains of business or profession', it remains to be...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

These appeals by the assessee are directed against the separate orders of the CIT(A) for the respective assessment years. Since the issues involved in these appeals are common and connected, and these appeals were heard together, these are being...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

The admitted position before the Court, on the basis of the material on the record, is that by the notice under Section 148 issued on 30th November 2009, the assessment pertaining to the year 2002 ­03 was sought to be reopened after the lapse of...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

I have a query related to tax deducted at source from Salary (Sec 192 of Income Tax).

While deducting income tax from the salary of an employee, Employer is required to adjustment losses on House property only. My query is related to adjustment of house property losses in Salary income and maximum amount of house property losses to be considered, if any.

Query 1:- For House property losses, is employer require to take maximum loss as Rs 1.5 Lacs, being the maximum expense claim allowed on account of Interest paid on borrowed capital,   (in case employee has let out the property and computation of loss is showing loss of more than Rs 1.5 Lacs).

Query 2:- Whether employer is require to adjust loss for only one house property (being the self occupied one) or losses on more than one house property could be considered ( One Self occupied and one let out or both properties let out)

Pls further suggest, what are the relevant documents required to be taken from employee as a house property loss computation along with Interest Certificate from Bank, Computation of House property loss, particulars of other income by employee in Form 12C/ simple statement.
Sandeep GargANS:It is pertinent to note that Section 192(2B) which permits Loss under House Property to be set off against Salary Income, for the purpose of determining the TDS on Salaries, does not distinguish between Loss under Self occupied House and Loss under Let out House. The implication is that, if it is Loss under self occupied property the Loss should be restricted to Rs.1,50,000/-and if it is Loss under let out House there is no such restriction. CBDT Circular No: 1/2010 dated 11-01-2010 explains the procedure in this regrd in paragraphs 3.6 and 3.7.

Does it mean that DDOs shall take into account only the Loss under Self occupied property for the purpose of determining the TDS on Salaries? I do not think so as neither Section 191(2B) nor paragraph 3.6 place any such restriction. Therefore the answer to your Queries are:

1. As section 192(2B)does not make any distinction between Self Occupied House and Let out house, if the property is Self occupied the Loss should be restricted to Rs.1,50,000/- and in case of let out House there is no restriction.

2. As per Section 192(2B) there is no restriction that the Loss should be restricted to one House only. It has been held in many cases that the Statutory Provisions will prevail over a Circular in case of contradiction between the two. The most recent case is Incometax Officer (OSD) Vs Data Software Research Company (International) Pvt Ltd (319 ITR 40 (AT) Chennai Tribunal relying on the Supreme Court decision in CCE Vs Ratan Melting and Wire Industries (220 CTR 98)

CA.M.K.KrishnanVellore(Tamilnadu)
Relevant Part of Section 192 Is reproduced here under
"192(2B) Where an assessee who receives any income chargeable under the head Salaries has, in addition, any income chargeable under any other head of income (not being a loss under any such head other than the loss under the head Income from house property) for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1) the particulars of(a) such other income and of any tax deducted thereon under any other provision of this Chapter;(b) the loss, if any, under the head Income from house property,in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take(i) such other income and tax, if any, deducted thereon; and(ii) the loss, if any, under the head Income from house property,also into account for the purposes of making the deduction under sub- section (1) :Provided that this sub-section shall not in any case have the effect of reducing the tax deductible except where the loss under the head Income from house property has been taken into account, from income under the head Salaries below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account."
Further No Form Has been prescribed on which other income is to be submitted , earlier Form 12C was applicable but now it has been abolished .Rule 26B describe how this information is to be submitted ,Rule is reproduced hereunder

Statement of particulars of income under heads of income other than “Salaries” for deduction of tax at source.83

"26B. (1) The assessee may send to the person responsible for making payment under sub-section (1) of section 192, a statement of any income chargeable under any head of income other than “Salaries” (not being a loss under any such head other than the loss under the head “Income from house property”), received by the assessee for the same financial year, and of any tax deducted on such income.(2) A verification in the following form shall be annexed to the statement referred to in sub-rule (1),—FORM OF VERIFICATION
I, .......................(name of the assessee), do declare that what is stated above is true to the best of my information and belief."
The House property Loss adjustment By DDO was started by Finance Act (2)1998,Clause 49 which also suggest that the above relief (adj of loss) is given for let out property also
Clause 49 seeks to amend section 192 of the Income-tax Act relating to deduction of tax at source from salary.
The existing provisions contained in sub-section (2B) of section 192 enables an assessee, having income under the head “salaries”,in addition to income under any other head, not being a loss under any such other head, to furnish in the prescribed manner the details of the total income to the person responsible for making the payment who shall deduct out of salary payment the tax due on total income, subject to the conditions prescribed in that sub-section. Proviso to the said sub-section (2B) provides that taking into account of such other income will not have the effect of reducing the tax deductible from the income under the head “salaries” below
the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account.
It is proposed to substitute the said sub-section (2B) so as to provide that an assessee having an income under the head “salaries” may furnish in the prescribed manner giving the details
of the losses under the head “income from house property” to the person responsible for making the payment who shall take into account such loss for the purpose of computing the tax deductible from salaries, which may be reduced in such a case. This amendment will take effect from 1st August, 1998 and will, accordingly, apply in relation to the assessment year 1999-2000
and subsequent years.

SEBI has appointed a former chief commissioner of income-tax, Mr Vijay Ranjan, as administrator for reallocation of unjust gains in the IPO scam (2003-05) to the unsuccessful retail applicants. Mr Ranjan was also associated with SEBI as an Executive...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

MCX Stock Exchange (MCX-SX), India's new stock exchange, has signed a memorandum of understanding with The Institute of Chartered Accountants of India (ICAI) Set up by an Act of Parliament for leveraging each-others' expertise and domain knowledge...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Over Rs 3 crore in cash have been recovered from an IAS couple in Bhopal following raids by the Income Tax Department officials at their residence on Thursday night. Officials also seized details of bank deposits worth Rs 2.25 crore from the house of Arvind Joshi, a senior IAS officer and his wife Tinu Joshi, who is the secretary of Woman and Child Welfare Development in the Madhya Pradesh government.

S. 2 (24) (x) provides that amounts received by an assessee from employees towards PF contributions etc shall be “income”. S. 36 (1) (va) provides that if such sums are contributed to the employees account in the relevant fund on or before the due date specified in the PF etc legislation, the assessee shall be entitled to a deduction. The second Proviso to s. 43B (b) provided that any sum paid by the assessee as an employer by way of contribution to any provident etc fund shall be allowed as a deduction only if paid on or before the due date specified in 36(1)(va).

I have to submit front side Xerox of my pan card with photo cleared visible & Barclays Bank Credit card front side Xerox with embossing of numbers of the cards to their representative who will come to my residence to collect at night ...

As you all know that Punjab Government has already increased the VAT rates from 4% to 5% on Scheduled B items w.e.f. 29-1-2010 and levied the surcharge on VAT Rates @10% w.e.f. 5-2-2010 as per public notice on 4-2-2010. But all VAT registered dealer are in confusion about surcharge. So A. Venu Prasad (ETC) has [...]

In this regard, certain representations were received from the Trade seeking clarification on the said circulars. The matter is examined in this office and it is now clarified that Circular No.35-T of 2005 and Circular No. 1-T of 2006 are withdrawn....

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Price Waterhouse may have heaved a sigh of relief with its auditor Srinivas Talluri getting bail on Thursday, but its legal woes are far from over. On Wednesday, the Institute of Chartered Accountants of India (ICAI) banned two chartered accountants...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

As per the present guidelines, in advertisements through audio-visual media like television, a statement “Mutual Fund investments are subject to market risks, read the offer document carefully before investing” is required to be displayed on the...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Over a year after the Supreme Court dismissed telecom major Vodafone’s petition challenging Indian tax authorities’ jurisdiction over its $11.2-billion acquisition of Hutchison Essar in 2007, UK Prime Minister Gordon Brown has written to Prime...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

The new Companies Bill with stricter corporate governance norms is expected to be enacted by the end of this year, Corporate Affairs Minister Salman Khurshid said today. Companies Bill 2009, which lapsed with the dissolution of the 14th Lok Sabha,...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Big corporations will now find it difficult to defer their advance tax payments. In a bid to meet its revenue collection targets, the Central Board of Direct Taxes (CBDT) has decided to monitor advance tax payments by top companies and persuade them...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Please refer to paragraph 2.3 of our Master Circular RPCD. CO. RRB. No. BL. BC.8/03.05.90-A/2009-10 (RBI/2009-10/41) dated July 1, 2009 in terms of which amalgamated RRBs having 75 or more branches will be allowed to open one Regional Office (RO)...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

The ‘Shield Panel’, a sub-committee of the Research Committee of the Institute, conducts the competition for the ‘ICAI Awards for Excellence in Financial Reporting’ annually, with a view to promote better standards in the presentation of information...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

The Sale of Examination Application Forms for Chartered Accountants Professional Education – II, Professional Competence Course (PCE), Integrated Professional Competence Course (IPCE) and Final Examinations and also for the Management Accountancy...

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

2.13.1 However, revalidation of freely transferable Authorisation / Duty credit scrips and stock and sale Authorisation shall not be permitted unless validity has expired while in custody of Customs authority / RA.

[[ This is a content summary only. Visit my website www.taxguru.in for full article ]]