Interesting case: Cost of acquisition to the assessee is not merely the amount paid to the vendors but also the cost of the borrowing made by him for the purpose of paying the vendor and obtaining the sale deed
Here ...
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The Blogs
Interest on Housing Loan: Possibility of double deduction cannot be overruled
Interest on Housing Loan: Possibility of double deduction cannot be overruled
CA Naresh Jakhotia
There are often various issues & decisions which makes Income Tax Act an interesting subject to read and analyze.
Let me try to elaborate few such issues in ...
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Sum received from display of advertisement on assessee’s undergoing real estate project is a business income or house property income?
Income Tax Act, 1961, Section 14
Heads of income---Income from house property or Income from other sources---Sum received from display of advertisement on assessee’s undergoing real estate project
Conclusion: Rental income received for display of commercial advertisement on assessee’s undergoing real estate ...
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Property used by the Assessee for the purpose of its business cannot be considered to be a vacant property as per section 23
Property used by the Assessee for the purpose of its business cannot be considered to be a vacant property as per section 23
M/S. Ideal Hitech Engineering ... vs Ito, New Delhi on 13 August, 2019
IN THE INCOME TAX APPELLATE ...
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Income from let out of ‘premises only’ is taxable under the head ‘Income from House Property’
Income from let out of 'premises only' is taxable under the head 'Income from House Property'
Short Overview:
In the absence of any facilities or business infrastructure provided by the assessee-firm to its lessee, rental income from let out of ‘premises ...
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Section 54F is a beneficial provision and should be liberally interpreted
Section 54F is a beneficial provision and should be liberally interpreted
An assessee who has purchased a house property is entitled to exemption u/s 54F despite the fact that construction activities of the new house has started before the date ...
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Capital gain exemption shall be limited to actual sale consideration and not stamp duty value
Capital gain exemption shall be limited to actual sale consideration and not stamp duty value
[2019] 104 taxmann.com 208 (Bombay)
Computation of capital gain and consequently computation of exemption under section 54EC, shall have to be worked out on basis of substituted deemed ...
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Interesting Ruling on Pure Agent
Interesting Ruling on Pure Agent
*Ruling on Pure Agent*
Authority for Advance Ruling, Maharashtra has replied that the conditions as laid down for pure agent in the GST provision is not fulfilled and hence the reimbursement would be treated as consideration ...
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Benefit of Long Term Capital Gain exemption for Two house properties
With the passage of time, the requirements of the taxpayers also changes and as such there is always a need to review the exemption clauses. Under the existing provision of Income Tax Act-1961, any Long-Term Capital Gain (LTCG) arising ...
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No exemption u/s 54B if new agricultural land was purchased prior to sale of old agriculture land
No exemption u/s 54B if new agricultural land was purchased prior to sale of old agriculture land
Facts:
1. The assessee entered into an agreement to sell his agricultural land on 29-12-2011 and received a part of sale consideration.
2. Subsequently, another ...
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Capital gain exemption available even if investment is done by availing housing loan
Capital gain exemption available even if investment is done by availing housing loan
Assumptions & presumptions are the biggest barrier to tax planning. One such presumption is with regard to availability of exemption under section 54 against Long Term Capital ...
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The third umpire – ITAT has ruled in favor of Sachin Tendulkar in a tax dispute case
The third umpire – ITAT has ruled in favor of Sachin Tendulkar in a tax dispute case
If the taxpayer owns more than one house properties then only one house property is considered as self occupied house property & the ...
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Exemptions under the Income from House Property
Exemptions under the Income from House Property
In this article we will discuss the cases wherein the income from house property is exempt.
Section 10(1):
Income from any farm house that forms part of agricultural income is exempt.
Section 10(19A):
The ...
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Whether Notional Interest on Security Deposit received for property given on rent chargeable to tax
Whether Notional Interest on Security Deposit received for property given on rent chargeable to tax?
An assessee received interest-free deposit in respect of a shop let out on rent. Whether the notional interest on it i.e. interest that would have been earned on it bebrought to tax? If yes it shall come ...
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Income under the head house property: Chargeability
Income under the head house property: Chargeability
In the today’s world people prefer to invest more and more sum of money in property. It is generally presumed that investing in property is safe and gives high return. In this article ...
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Claim deduction @ Rs. 5,000/- pm if living in a rented premises- Section 80GG
Claim deduction 80GG
Query 1]
I am not owning any house as of now and living in a rented premises. Neither me nor may parents have any house property. My old property was dispos off by my father during his life ...
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Profit arising from sale of property & Tax saving options
Tax saving
Query 1]
I request you to kindly suggest me on the following issue. I have sold residential cum commercial plot at Bhopal for Rs. 1 Crore, which I had purchased for Rs. 28,000/- in the year 1994. Deal was ...
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Not actual rent, House property is taxable on the basis of its Annual Value
House property
Query]
If I purchase the second house property for my own use, still whether I would be require to pay the tax? I don’t wish to let out the second house but want to purchase it for investment ...
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