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LIBERAL v/s. LITERAL INTERPRETATIONS

Courts hold that beneficial provisions of Sec. 54EC must be interpreted liberally & equity should prevail over injustice! Section 54EC of the Income-tax Act provides for exemption of taxable long term capital gains (LTCG) arising from the transfer of an asset, to the extent the amount of such gains are invested in notified bonds within a period of six months from the date of transfer. Notified for this purpose...

HUF GIFTS NOW FREE FROM TAX!

As per the 2012 amendment effective from 1st October, 2009 in case of an HUF, its member shall be treated as a relative!                  The scope of definition of ‘income’ u/s. 2(24) was widened by the Finance Act, 2004 by providing that ‘income’ would now include any sum referred to in Section 56(2)(v). Section 56(2)(v) was introduced to provide that, “where any sum of money exceeding Rs.25,000 is received...

IT’S TIME FOR YOUR TAX RETURNS!

You need to know atleast this much on mandatory E-filing & filing returns even where no tax is payable!               Starting from Companies in Assessment Year 2006-07 and Partnership Firms liable to tax audit under Section 44AB in Assessment Year 2007-08, Proprietorships of Individuals and HUFs liable to tax audit from Assessment Year 2010-11, have all been mandatorily required to file their income-tax...

TAX INCENTIVES FOR AUTHORS!

While Rs.3 lakhs of specified royalty is exempt, an adhoc deduction of upto Rs.5,000 is also available out of honorarium!              As per the provisions of Section 80QQB, for purposes of computing the taxable income in case of an author, who is an individual resident in India, a special deduction of upto Rs.3,00,000 is available in respect of specified royalty income earned by him.              Such specified...

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