Due date to file ITR-V for Ay 2012-13 & 2013-14 Extended

There are many taxpayers who have uploaded their Income Tax Returns (without digital signature Certificate) for A.Y. 2OI,z-Lg [filed between 1.4.2012 to 31.10.2013 and for A.Y. 2013-14 [filed between 01.4.2013 to 31.10.2013, but have either not filed the corresponding ITR-V or have filed it with the local Income-Tax Office. ITR-V is accepted only at CPC, Bengaluru by ordinary or speed post. Therefore an opportunity is being given to such taxpayers to regularize their Income-tax returns. 

Don't Take TDS Lightly

Nowadays delay in payment of TDS and in TDS return Filing makes an assessee liable to Late Payment Interest, Late Payment Penalty, Late Filing Fees, Late Filing Penalty and Further makes him liable to prosecution under the provision of the Income Tax Act, 1961. In this article we are discussing some of these provisions which makes it clear that TDS cannot be taken lightly and we should take utmost care in timely payment of TDS and filing of TDS return.

HC nods to trust registration as it carried out a few charitable activities due to receipt of paltry donations

IT : Where assessee-foundation, formed to promote cause of education, gave major portion of donation received for benefit of students during first year of its formation, Tribunal rightly concluded that charitable activities carried out by assessee could not be regarded as of low magnitude and, thus, assessee's claim of registration under section 12AA was to be allowed

Profits from sale of agricultural land by real estate developer were taxable as business receipts

IT : Where assessee-firm was constituted for purpose of carrying on business of buying and developing properties into plots and in meantime it purchased agricultural land and sold same after three years, income derived on purchase and sale of agricultural land formed income from business

Sec. 54 relief allowed as two houses were acquired instead of one big house to avoid disharmony among children

Facts:

The assessee sold his house and invested the capital gains from sale of house in purchasing two independent residential houses for his two sons. 

The issue for consideration of High Court was:

Whether exemption under sec. 54 would be available in respect of two separate residential houses acquired out of capital gains?

The High Court held in favour of assessee as under:

1)  It was open to the assessee to purchase a big residential house out of the sales consideration so as to accommodate his two sons and avail of exemption under section 54. Instead, he chose to purchase two small residential houses to avoid any litigation or disharmony;

2)  The context in which the expression "a residential house" is used in section 54 makes it clear that it was not the intention of the Legislature to convey the meaning that it referred to a single residential house;

3)  The singular 'a residential house' also permits use of plural by virtue of section 13(2) of the General Clauses Act. Therefore, the acquisition of two residential houses by the assessee out of the capital gains would fall within the phrase 'residential house' and, accordingly, the assessee would be entitled to the benefit undersec. 54(1);

4)  However, while interpreting this word, the authorities have to keep in mind the facts of the particular case. When we hold 'a' could not be read as singular, it also could not be read as multiples and so as to avoid paying taxes. – CIT v. Khoobchand M. Makhija[2014] 43 taxmann.com 143 (Karnataka)

HAPPY HOLI

No TDS from salary paid to NR working on a foreign ship for less than 90 days as it is exempt under sec. 10(6)(viii)

Payments made to foreigner-crew member of ship who had worked for a period of less than 90 days in India, were not income of employees in India liable to TDS.

Due date of payment of last installment of advance tax extended till March 18, 2014

DATE OF PAYMENT OF THE MARCH INSTALMENT OF ADVANCE TAX EXTENDED FROM 15TH MARCH 2014 TO 18TH MARCH 2014

The final instalment of Advance tax for Financial Year 2013-14 is required to be paid on or before 15th March, 2014 by the tax payers who are liable to pay advance tax. These taxpayers can make payments in the designated branches of the authorized banks, electronically or physically, as per law. The banks are open for half day on 15th March, 2014, being a Saturday. Accordingly, to facilitate payment of this instalment of Advance tax for the Financial Year 2013-14, the Central Board of Direct taxes (CBDT) has issued an order to extend the time limit to make such payments of Advance Tax, from 15th March, 2014 to 18th March, 2014. Taxpayers, therefore, can now pay their advance tax instalment by 18th March, 2014 without entailing any consequential interest for deferment.

Presumptive taxation under Sections 44AD, 44AE and 44AF

Sections 44AD, 44AE and 44 AF cover special provisions of computing profits on a presumptive basis. All the schemes are optional at the discretion of the assessee. Conditions and manner of computation common to all three sections are given at the end after specific provisions applying to each section.

ADVANCE TAX DUE DATE ADVANCE TAX CHALLAN INTEREST ON LATE DEPOSIT

Who is responsible to pay Advance Income Tax

The provisions of advance tax are applicable on all types of persons irrespective of the residential status of the person.

Senior citizen exempted from advance tax
W.e.f.  Financial year i.e 2012-13(assessment year) ,Resident Senior citizens (age 60 years on or before end of previous year) are exempted to deposit Advance Income Tax ,if they do not have income from business and profession.