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Ritesh Chaudhari

Category : Income f..,

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December 12, 2018 1:00 pm

Hello Sir,
First I want to say Thank you very much for helping us.

I am salaried person (taxable Income more than 10 Lacs).
I have two home in Pune, one is self occupied where second is rented.
There is no home loan available against rented property and home loan available against self occupied pr...

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Amlan Dutta

The house which is self occupied has no income (no loan interest repayment which could have been shown as negative income)...so effectively , you have income from the let out property only ....assessee having income from only 1 house property can use ITR 1 ......income from let out property is not ...

December 12, 2018

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Ritesh kumar srivastava

Category : Clubbing..,

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December 11, 2018 3:25 pm

Hi Amlan,
pls guide on the scenario where husband give away loan of 5lakh with nominal interest (to avoid clubbing provisions) to non earning wife for start of her small business to be engaged in daily life such as sewing/computer classes (not registered) or share market trading/investment to generat...

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Amlan Dutta

Firstly be very careful to document the loan...No intimation is required to be given to the Department by either you or your wife , the ITR credentials will be sufficient .....Note that it is not be shown as gift in any event else income from the gifted amount shall be clubbed to your income invoking 64(1) of the act ......

Normally loaned amounts to wife at REASONABLE ( NOT NOMINAL) rate of interest for starting her own business/ investing in shares/ purchase of property should not attract clubbing provision of section 64 (1)... Precaution to be taken in such a case is that the interest charged by the husband should be a reasonable one ...

As to what would be a reasonable rate of interest depends on fact and circusmtances of the case ....for example if you would have otherwise kept the money in FD and now loaning it to your wife , take interest atleast more than bank FD offered rates ....you will show such interest income under other sources in your return of income ...

As far as filling ITR for wife is concerned , since loan is not income for wife , she doesn't need to show it in ITR ...and income from her investments under loaned arrangement now qualifying to be her own( since clubbing u/s 64(1) won't apply) will be charged as per income head accordingly ...i.e if she makes money from shares on delivery based trading, then she will fill up capital gain income head, likewise for business income from sewing classes/computer classes , then income to be shown under business head

Note that there have been unfortunately a few cases where amount is loaned to wife and she puts it in shares to earn an income and thereby husbands end up saving significant tax by clubbing of income ,it may be hard to convince the tax authorities about the lender borrower arrangement , given the close relationship of parties and the tax save involved ....usually in most cases it is used as tax saving method and the revenue wants to be careful of that...so sometimes, it boils down finally to the assessing officers take on the situation , however under loaned arrangement at reasonable rate of interest , section 64(1) clubbing fails and you can always appeal

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December 17, 2018

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Amlan Dutta

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December 17, 2018

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Vishal lakhani

Category : Differen..,

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December 11, 2018 10:16 am

Sir I am in bsf and in the year 2017 I got posted from 110 bn bsf to CSWT bsf indore due to which in FY 2017 -18 I have got two employers i did not get any form 16 from 110 bn however my form 26 as shows Rs 440018.00 paid credited and tax deducted an d deposited Rs 500.00 subsequently cswt indore pa...

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Take up with your employer so that the right income figures reflect in your 26 as .....
You can file return based on actuals but get your 26AS updated by the employer...(Assessing officer will not accept fancy reasons as to your employer not agreeing to your TDS ,not being help to hel...

December 11, 2018

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Shriya

Category : TAXATION..,

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December 9, 2018 12:24 pm

Hello Amlan,

One more question i had about NPS. I see that there is lot of confusion on taxation of NPS Tier 2 account. Could you please explain what will be the tax treatment on earnings from of NPS Tier 2?

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Shriya

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There is no tax benefit ....the earnings from NPS Tier II investment are taxed as per slabs . If through Tier II , investments are made into debt mutual funds then you get benefit of indexation....... but the benefits of a equity oriented fund may not get through , it appears ...

December 9, 2018

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Amlan Dutta

December 9, 2018

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