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PERSONAL EFFECTS TAX EXEMPT!

Wearing apparel, furniture, utensils, vehicles, etc. held for personal use not liable to capital gains tax! Readers will recall that the Cost Inflation Index (CII) for purposes of computing the Indexed Cost of Acquisition for computation of Long Term Capital Gains for FY 2011-12 was 785. As against the same the Central Government has recently notified the CII for FY 2012-13 at 852. This reflects an 8.5% rise in...

TAX CONCESSIONS FOR RENTAL INCOME

Standard deduction & interest on borrowed capital help effectively scale down your tax rate on rent Under the provisions of the Income-tax Act, the annual value (AV) of a house property let-out on rent is determined on the basis of the following: The fair rental value of the property, not exceeding the standard rent determined or determinable under the relevant Rent Control Act. Actual rent received or...

CHECK YOUR WEALTH TAX LIABILITY

With current prices of gold, silver & motor cars its worth taking a look if you are liable to wealth tax There was a time when everything was taxable under Wealth-tax, excepting specific exemptions provided for the purpose. Under the current provisions, only six kinds of assets are treated as taxable, thereby exempting all other assets from the scope of Wealth-tax. With effect from Assessment Year 1993-94, the...

NAME GAME ON CAR DEPRECIATION!

Firm or company can claim depreciation on car purchased out of its funds, though in the name of its partner or director!                     “What’s in a name? That which we call a rose by any other name would smell as sweet.”  This Shakespearean quote seems to have inspired as many five High Courts to hold that the Income-tax Department cannot refuse the claim for depreciation on a vehicle owned by a company...

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