Earned Capital Gains? Calculate Your Tax Liability
05 oct 2007
How to Calculate Your Tax Liability on Capital Gains – both long-term and short-term gains
income tax
Set off and Carry forward of Capital Losses
03 oct 2007
The Income Tax Act provides for a specific way for adjustment of losses arising from sale/transfer of capital assets. But to start with the process for set off, one has to first separate the capital losses into short term and long term.
Proposed amendment in law likely to open new investment avenues for Indian trusts.
13 sep 2007
With the government contemplating amendments in the pre-independence enacted Indian Trust Act, 1882, the trusts will have greater flexibility with their investment decisions.
According to present law, registered trusts can invest their resources either in securities notified by government or prescribed by the trust’s charter or under a high court ruling.
Soon, Wealth Tax may be paid alongwith Income Tax
30 aug 2007
The Finance Ministry is busy drafting the new Direct Tax Code which would be tabled in the winter session of Parliament. The new Code would make it mandatory to pay Wealth tax alongwith Income tax.
Long term capital gains may lose tax exemption
07 aug 2007
The IT department is on a keen drive to increase tax collections and curb black economy. As per reports, a proposal is under consideration whereby tax exemption on long term capital gain would only be restricted to investments made in shares of companies constituting the BSE-500 index.
A mutual fund which could give additional tax benefits of Rs.1 lakh
07 aug 2007
A SEBI committee has come out with proposals for launch of Dedicated Infrastructure Funds (DIFs) by mutual funds. It has proposed additional tax exemption of Rs.1 lakh for investing in DIF but with a 7 year lock in period.
Dealing with Income Tax Scrutiny
05 aug 2007
Modus Operandi of Income Tax Scrutiny
The main objective of the IT officer during scrutiny is to make sure that the income shown in the return is real and there is no tax evasion.
Income Tax Scrutiny – more returns to be under strict scanner
05 aug 2007
It seems that the government is all set to make Income Tax more complex and wipe away transparency from it. Taxpayers have not even recovered from the filing of cumbersome new ITR forms that it is reported by IT department to keep the scrutiny selection process away from the purview of RTI Act.
Latest instructions and clarifications for filing ITR Forms
30 jul 2007
The CBDT has recently issued a circular specifying instructions and clarifications on furnishing of returns in the new ITR forms:
It is mandatory for the proprietory and partnership firms, which are tax auditable u/s 44AB and companies (other than claiming exemption u/s 11) to electronically furnish the return of income/fringe benefits.
The return of income/ fringe benefits in Form ITR-7 by charitable/ religious trusts, political parties and other non-profit organisations is to be furnished in the paper form only.
TAN – Facts you should know
26 jul 2007
TAN or Tax Deduction and Collection account number is a unique ten digit alpha-numeric number required to be compulsorily obtained by all persons who are responsible for deducting or collecting tax at source on behalf of Income Tax Department.