Yupppiieee INDIA WON the Match..

Wish you a Very Very Happy Diwali !!

We are celebrating 1st Diwali of 2011 !!

3 Cheers for India!! Hip Hip Hurrey!! Hip Hip Hurrey!! Hip Hip Hurrey!!

Proud to be INDIAN !

DT Recent Case Laws - CIT v. Nestor Pharmaceuticals Ltd.2010

CIT v. Nestor Pharmaceuticals Ltd. 2010

Sidwal Refrigerations Ind. Ltd v. DCIT 2010

(Imp CaseLaw of Sec80IB)

Fact:

*Trial Run production in March1998

*Commercial Production started in April1998

*Sale of 1unit water cooler & A.C. in March98 to get regn under Excise Act & Sales Tax Act

Case:

Period of exemption from & upto which AY?

Decision:

Since company had sold in March98,so it had crossed the stage of trial prodctn & final saleable had mfrd & sold. With this sale, marketable quality was established. Thus, the condition of 80IB were fulfilled in March98 & hence 5yrs will b from AY98-99

DT Recent Case Laws - Liberty India v.CIT2009(SC)

Liberty India v.CIT2009(SC)
DEPB Scheme benefit &Duty Drawback are not profit derived from eligible business/industrial undertaking u/s80-IB. So,it cant b treated as profit derived from business undertaking for purpose of 80-IB

DT Recent Case Laws - CIT v.Kiran Enterprises 2010(HP)

CIT v.Kiran Enterprises 2010(HP)

C.Govt.Scheme Freight Subsidy recvd is not a profit derived from business & not operational profit.So,it cant b treated as profit derived from business for purpose of 80-IA

DT Recent Case Laws - CIT v. Chandni Buchar 2010(P&H)

CIT v. Chandni Buchar 2010(P&H)
A.O. added in TI of assessee,the difference between purchase price DISCLOSED in SALE DEED&purchase price adopted for paying STAMP DUTY.High Court decided that 50C is a deeming provision for bringing the difference to capital gain tax.Valuation for STAMP duty calculation wud not ipso facto substitute of actual sale consideratn.Here,assessee proved the consideration of sale deed with original bank statement.Hence this addition is deleted

DT Recent Case Laws - CIT v.GurnamSingh2010(P&H)

CIT v.GurnamSingh2010(P&H)
Assessee claimed exemption u/s54B of AgriculturalLand purchased by him along with his son out of sale proceeds of agricultural land.Son was co-owner.
Revenue objected:land is regd in his son's name.
Decision: No contrary to provision of law&hence assessee is entitled to exemptn u/s54B

DT Recent Case Laws - CIT v. Sri Hariram Hotels Pvt LTD 2010(Karn.)

CIT v. Sri Hariram Hotels Pvt LTD 2010(Karn.)
Company borrowed loan from its director to purchase land & put up a Hotel Project.But project cudn't get materialized & company sold that land.Company passed resolution to pay interest on that loan & claimed interest paid to directors after sale. Here, Passing resolution for pmt of intt is not relevant since intt starts accruing as soon as loan is taken.Hence intt paid is allowed as exp.

DT Recent Case Laws - Lalitaben Hariprasad v. CIT 2010 (Guj)

Lalitaben Hariprasad v. CIT 2010 (Guj)
Members in HUF - Father, Mother, 2Sons & that HUF has Residential HP. Father & Mother took 1/2 share each of that RHP & paid 1433000each to sons. High court observed that COA of 1/4th share of HP being proportion to each members u/s 49(1)(i), the COA of HUF will b COA to members. But here, ADDITIONAL SHARE ACQUIRED at the time of partition, therefore 1433000 can b claimed as COA in the hands of each assessee on subsequent sale.

DT Recent Case Laws - P.P.Menon v. CIT 2010 (Ker.)

P.P.Menon v. CIT 2010(Ker.)
One Partner take over land & building of firm on its dissolution. He sold L&B in just 3days.The benefit of including period of holding of previous owner u/s2(42A) read with Sec49(1)(iii)(b) can b availed only if dissolution was bfore 1.4.1987. Thus, in this case it will be STCG/STCL.

DT Recent Case Laws - Hindustan Unilever Ltd v. DCIT 2010 (Bom.)

Hindustan Unilever Ltd v. DCIT 2010(Bom.)
For exemption u/s 54EC, the capital gain shud be INVESTED in longterm specified asset within 6months from date of transfer. If,assessee made payment within 6months,then exemption cannot b denied merely bcoz bond was issued(or date of allotment) after expiry of 6months.

DT Recent Case Laws - Navin Jindal v. ACIT 2010 (SC)

Navin Jindal v.ACIT 2010(SC)
For determining whether capital gain on renounciation of right to subscribe for additional shares is short-term or long-term, period of holding wud b from date on which such right to subscribe for additional shares comes into existence(i.e. when company passes resolution)

DT Recent Case Laws - CIT v. Mihir Textiles Ltd 2009 (Guj)

CIT v. Mihir Textiles Ltd2009(Guj)
Money borrowed by issue of debentures is in nature of LOAN &cannot assume as investment.So,exp in nature of commitment charges at the time of issuing such debenture wud b on REVENUE a/c only.Hence allowable as deduction u/s36(1)
Same decision in DCIT v. Core Health Care Ltd2008

DT Recent Case Laws - CIT V.DCM Ltd 2010 (Del.)

CIT V.DCM Ltd 2010(Del.)
Assessee had 4units of textile business.1UNIT(not whole business)closed down&borrowed money to pay retrenchment compensation to employees.
Such retrenchment compensation&interest on borrowed money wil b treated as REVENUE exp.
but if closure of ENTIRE BUSINESS, then it wud b a CAPITAL exp

DT Recent Case Laws - CIT v. Samtel Color Ltd 2010 (Del.)

CIT v. Samtel Color Ltd 2010 (Del.)
Corporate Membership admission fees of club paid by company is fully allowable as REVENUE expenditure.
Employee can be substituted at any point of time.Test of Sec37 is that it should be incurred wholly & exclusively for purpose of business & not towards capital account.

DT Recent Case Laws - TRF Ltd v.CIT2010(SC)

TRF Ltd v.CIT2010(SC)
After1.4.1989,its not necessary for assessee2establish that debt, in fact,has become irrecoverable.Its enough if bad debt is written off as irrecoverable in a/c of assessee.(No need2prove)

DT Recent Case Laws - CIT v.Hindustan Zinc Ltd 2010(Raj.)

CIT v.Hindustan Zinc Ltd 2010(Raj.)
Assessee incurred exp for alteration of dam(constructed by State Govt)to ensure sharing of water(required in large quantity)with S.Govt. without hving right or ownership in dam/water.Its an OPERATIONAL exp &REVENUE in nature

DT Recent Case Laws - CIT v. Sagar Talkies 2010(Karn.)

CIT v. Sagar Talkies 2010(Karn.)
Assessee replaced the old sound system with a new Dolby stereo system. Since there was no change in seating capacity, the expenditure on such change of sound system could not be considered as capital expenditure

DT Recent Case Laws - CIT v. Neelavathi & Others2010(Karn.)

CIT v. Neelavathi & Others2010(Karn.)
Payment to Police & Gundas to keep away from Cinema Theatre run by assessee amounts to bribe/illegal payment.Hence deduction is NOT ALLOWABLE.

DT Recent Case Laws - Dr.Aswath N.Rao v. ACIT 2010 (Karn.)

Dr.Aswath N.Rao v. ACIT2010(Karn.)
Exp incurred for purchase of 2nd hand medical equipment for use as spare parts for existing equipment is a REVENUE expenditure

DT Recent Case Laws - CIT v. Sundaram Clayton Ltd 2010 (Mad.)

CIT v. Sundaram Clayton Ltd 2010(Mad.)
Exp on purchase of software component has to be treated as REVENUE exp. Also,upgradation of computer config is not a change of enduring nature & hence its REVENUE exp

DT Recent Case Laws - CIT v. Smt.A.Sivakami & Another 2010

CIT v. Smt.A.Sivakami & Another2010
Assessee is eligible to claim depreciation on the busses not registered in her name but she is beneficial owner. Owner is a person who is entitled to receive income from property in his own right. Owner need not necessarily b lawful owner entitled to pass on the title of property to another

DT Recent Case Laws - CIT v. Asian Hotels Ltd 2010(Del.)

CIT v. Asian Hotels Ltd 2010(Del.)
Notional Interest on intt free deposit given by tenant to landlord is NOT assessable either as PGBP or IHP

DT Recent Case Laws - CIT vs Walfort Share & Stock Brokers Pvt Ltd 2010 (SC)

CIT vs Walfort Share&Stock Brokers PvtLtd 2010(SC)
Sec10(35),14A,94(7)
Company purchasd cum-dividend units ofMF &then dividend declared.Company entitled2recv dividend&claimed exemptn u/s10(35)
Thereafter company sold all Units(ex-dividend)at LOSS within3days&set off entire STCL.
Deptt contended assessee incurred exp2earn tax free dividend ¬ allowed as per14A.
SC held that its DIVIDEND STRIPPING ¬ covered by sec14A. Loss to the extend of Div Income wil b ignored

DT Recent Case Laws - Chandra Ranganathan v. CIT2010(SC)

Chandra Ranganathan v. CIT2010(SC)
The SC held that amount recvd by employees retiring frm RBI opting for Optional Early Retirement Scheme are eligible for exemption u/s10(10C)

DT Recent Case Laws - CIT vs.Kisan Sahkari Chinni Mills Ltd 2010(All.)

CIT vs.Kisan Sahkari Chinni Mills Ltd 2010(All.)
Subsidy/grant recvd for recoupment of CapitalEmployed or repayment of Loan from FI for setting up/expansion of new sugar factory in not in course of trade.So,it is a CAPITAL RECEIPT NOT CHARGEABLE to TAX.
Same decision was of CIT vs. Ponni Sugar & Chemicals Ltd 2008(SC)

DT Recent Case Laws - CIT vs.Udupi Builders Pvt Ltd 2009 (Kar.)

CIT vs.Udupi Builders Pvt Ltd 2009(Kar.)
Company established Hotel industry based on subsidy ANNOUNCED byStateGovt to encourage tourism. bt Subsidy was RECEIVED AFTER COMPLETION OF PROJECT&commncemnt of business.
Purpose of subsidy is imp &not the time of receipt(may b recvd even after10yrs).Hence it is CAPITAL RECEIPT

DT Recent Case Laws - CIT vs.Saurashtra Cement Ltd 2010 (SC)

CIT vs.Saurashtra Cement Ltd 2010(SC)
If Supplier fails to supply within stipulated time as per agreement which provides for Liquidated damages without proof of actual loss in this case & liquidated damages recvd by assessee will b CAPITAL RECEIPT because it was not recd in course of Profit earning process

Admin's Announcement

Dear Member!
We please to inform u that we hv completed all Amendments&Notifications of IncomeTax&WealthTax,applicable for both PCC/IPCC&Final May2011 Exams.

Thanks alot for so much appreciation emails.

Further,we are going to cover following thing in next a few days:
1.Recent CaseLaws of IncomeTax &WealthTax
2.Amendment in IndirectTaxes through FA2010&Notification upto31.10.2010
3.Recent CaseLaws of Indirect Taxes

SHAYVIDZ - Exam Tips for DT Final

Prep Strategy4 DT Final:

*PGBP=16Marks

*AssessmntProcedure,Appeals etc,Penalty,Prosecution, SETTLEMENT COMM. =16Marks

*Amendments+CaseLaws =20Marks

*WealthTax=10M

*TDS=6M

*Capital Gain/assessment of LLP=6M

*Sec56(2)(vii)-6M

*DTAA,Trf Pricing,Deductions,NR,assessment of various entities-20M

DOUBLE TAXATION AGREEMENT - Notification No.25/2010

Explanation 2 of Sec.90
Now Specified Territory will include Hong Kong Special Administrative Region of People\'s Republic of China.

Finance Act 2010 - SETTLEMENT COMMISSION

For FINAL Students:
SETTLEMENT COMMISSION
(w.e.f.1.6.2010)

1.Sec.245(b)of I.TaxAct &Sec22A of WealthTaxAct
Now,CASE will INCLUDE any proceeding4assessment/re-assessmnt as a result ofSEARCH/REQUISITION

2.Sec245C of IT Act
Additional Amt ofTax payable on Income disclosed in application
*if CASE is of Assessmnt ofSearch/Requisitn)-EXCEEDS 50Lacs
*Other CASE-Addtn Amt EXCEEDS 10Lacs(earlier,3Lac)

3.Sec245(4A)of IT Act &Sec22D(4A) ofW.TaxAct
Now,TimeLimit forOrder-18Months

DEDUCTIONS FROM GROSS TOTAL INCOME - Notification No. 68/2010 & 48/2010

DEDUCTION from GTI

1.N/N 68/2010-Donation to ArcheryAssociation of India,New Delhi is eligible for dedctn u/s80G fromAY10-11 to12-13

2.N/N 48/2010-LongTerm Bond u/s80CCF,
*Eligible Issuer-IFCI, LIC, IDFC, NBFC(Infrastructure)
*Tenure of Bond-Min5yrs
*Minimum Lock-in-Period for Investor-5yrs(Hypothecation allowed)

INCOME FROM SALARY - Notification No. 43/2010 & 69/2010

INCOME FROM SALARY

1.N/N 43/2010 - For purpose of Calculation of Exemption of Gratuity u/s10(10)
Max Limit upto23.05.2010=3.50Lacs
On or after24.05.2010=10Lacs

2.N/N 69/2010-Interest of Recognised Provident Fund- Now,Taxable Intt=Actual interest received LESS interest@8.5% w.e.f.1.9.2010

Now, Join us on Facebook.

Admin's Announcement

Dear Members!
 
*We hv completed all amendments of FinanceAct2010 applicable for both PCC/IPCC& Final May2011exams.
 
*Now,we will send Notifications issued after30.4.2010 upto31.10.2010
 
*After that,we will send amendment in Settlement Commission& a few Notification upto31.10.2010 which are applicable to Final Exams only

Admin

Finance Act 2010 - Sec282B - Extension of date for issue of Document Identification Number

*Sec282B The date for implementation of issue of Documentation Identification Number(DIN)on each correspondence has deen extended to1.7.2011
(w.e.f. 1.10.2010)

Finance Act 2010 - Sec260A(2A) - High Court empowered to condone delay in filing of appeal

APPEALS

*Sec260A(2A) - High Court has & also had power to condone delay&admit appeal after expiry of 120days,if sufficient cause of delay (Retrospectv effect from1.10.1998)

*Same amendment in provision of Sec27A(1A)of WealthTaxAct,1957

Finance Act 2010 - Sec.143(1B) Time Limit extended for issue of Notifications in respect of Centralised Processing of Returns

ASSESSMENT PROCEDURE
 
Centralised Processing Centre (CPC) has been set-up at Bangalore for centralised processing of ITR. Now Central Government can issue notification upto 31.03.2011 to relax, modify or adopt any provision of law relating to processing of returns.
(effective from 1.4.2010)

ICAI News - Verification Status November - 2010 Examinations - (17-03-2011)

Verification Status November - 2010 Examinations - (17-03-2011)

---

• PCE - NOV, 2010
  
  
• FINAL - NOV, 2010
  
  
• IPCE - NOV, 2010

Finance Act 2010 - Computaion of Profit & Gain of Non-Life Insurance Business (Rule5 of 1st Schedule to IncomeTax Act)

*Computaion ofProfit&Gain ofNon-Life InsuranceBusiness(Rule5of 1st Sch.to IncomeTaxAct)
Sec44r.w.Rule5-UnrealizedGain due2appreciation in value of investmnts wil nt b included in TI &UnrealizedLoss(i.e.Provision4diminution in value of investmnt)is not allowable as deductn

Finance Act 2010 - Deductions from Gross Total Income..

4.Sec80-ID Extension of terminal date for functioning of Hotel & Construction of Convention Centres from31.3.2010to31.07.2010
*5yrs tax holiday to New 2,3,4star & convention centre set up in National Capital Region in view of COMMONWEALTH GAMES in October2010
*Now,It should start functioning from1.4.2007to31.7.2010

Finance Act 2010 - Deductions from Gross Total Income..

 3.Sec80-IB(10) Relaxation of Condition for Housing Project approved ONLY on or after1.4.2005

*Earlier, max allowed built-up area for shop/commercial establishment included in housing project was 5%of total built-up area or 2000Sqft whichever is LOWER.
But Now 3%or 5000sqft whichever is HIGHER

*Time limit of completion of Housing Project, now extended from 4yrs to5yrs

[This is an eligible deduction of 100%of profit from such project which are approvd before31.3.2008]

Finance Act 2010 - Deductions from Gross Total Income..

2.Sec80D MediclaimPolicy or contri to C.GovtHealthScheme
*Self,spouse,dependent children(aggregt):15000
*Parents(independnt/dependnt):15000,SeniorCitizen:20000

Finance Act 2010 - Deductions from Gross Total Income

*Deduction from GTI

1.New ADDITIONAL Deduction(to INDIVIDUALS&HUF Only)u/s80CCF of Rs.20000(SEPARATE frm limit of Rs.1Lac u/s80CCE)for Investment in Notified LONG-TERM INFRASTRUCTURE BONDS.

2.Sec80D, 3.Sec80-IB & 4.Sec80-ID in nextSMS

Finance Act 2010 - Newly inserted Sec 56(2)(viia) & Related amendments..

NewSec56(2)(viia)
Trf of shares without/inadequate consideratn to attract provision of 56(2)in case of recipient FIRM & COMPANIES also if FMV or DIFFERENCE exceed 50000

Exceptions to 56(2)(viia)-Trf of shares OF/TO a public company

ExemptedTransactions:47(via),(vic),(vicb),(vid),(vii)

RelatedAmendments
*Sec2(24)Definition of Income now include money/property ofSec56(2)(vii)&(viia)
*Sec49(4)forCapitalGain on trf of assets of 56(2)(vii)&(viia), COA=Value tkn in (vii)&(viia)

Finance Act 2010 - Answer of Example on Sec 56(2)(vii)

Ans.

IOS
1.CashGift-Taxable75000
2.Bullion(w.e.f.1.6.2010if FMV>50000)Taxable60000
3.StampValue ofLand(WITHOUT Consideratn)Taxable500000
4.Difference of 2lacs not taxable coz shares are stock-in-trade for Mr.AD
5.Appreciation in value of immovable property between time of its booking & its actual regn is outside the scope of Sec56(2)(vii)
Total IOS=635000

CAPITAL GAIN
Sale Consideration7L - COA5L = STCG 2Lacs
Period of holding of previous owner is not to be considered.

Finance Act 2010 - Example on Sec 56(2)(vii)

Imp Example ofSec56(2)(vii)

Mr.AD,a dealer in shares,recvd WITHOUT Consideration frm his friend Ms.DA-

1.Cash-75000 on Annivrsry 7.1.2011

2.Bullion,FMV-60000 on Bday 19.06.2010

3.Land on 1.7.2010,Stamp Value on that date-5Lacs. Mr.B purchased land inApril2005

Mr.AD purchased,from Mr.AK share broker,1000shares of SABC Ltd@400/-each on19.06.2010,FMV of which was600/-each on that date. Mr.AD sold it in course of his business on23.06.2010

On1.11.2010,Mr.AD took possession of Flat booked 2yrs back@20Lac.Stamp Value of property on1.11.2010 is 32Lacs.

On1.3.2011,he sold the land for 7Lac

Compute IOS &Capital Gain for AY2011-12.

Finance Act 2010 - Amendment in Definition of Property for the purpose of Sec56(2)(vii)

*Definition of Property for Sec56(2)(vii) amended:-
1.Property=Only capital assets &not stock-in-trade,RawMaterial&consumable stores of business of recipient
2.Now,Bullion has also been included in movable property w.e.f. frm1.6.2010

*Sec142A(1)w.e.f.1.7.2010,A.O. can make reference to valuation officer forFMV for56(2)

Finance Act 2010 - Transfer of IMMOVABLE PROPERTY for INADEQUATE Consideratn wud always b outside the ambit of Sec.56(2)(vii)..

Income from Other Sources

Sec56(2)(vii)-Now,transfer of IMMOVABLE PROPERTY for INADEQUATE Consideratn wud always b outside the ambit of 56(2)(vii)

So,nowSec56(2)(vii)will cover

1.Trf ofIMMOVABLE PROPERTY- WITHOUT CONSIDERATION if Stamp Value exceeds Rs50000

2.Trf ofMOVABLE PROPERTY-
*WITHOUT CONSIDERATION whr FMV exceeds Rs50000 *INADEQUATE CONSIDERATION whr FMV less Sale Consideratn exceeds Rs50000
[W.e.f.1.10.2009]

Admin's Announcement

Dear Members!

*Its not practically possible for us to send the biggest amendment in CapitalGainTax exemption in respect of LLP through SMS.
So,we will post it in detail (with example question)in our blog after completing all the amendments of IncomeTax.

*We are expecting a question of 6-8marks from this provision of LLP in this May2011 exams.So,plz dont skip these amendment.

Admin

Finance Act 2010 - Sec47(xiiib) inserted-Conversion of Small Pvt Companies &Unlisted public companies into LLPs 2b EXEMPT FROM CAPITALGAINTAX subjct to FULFILLMENT OF CERTAIN CONDITIONS..

CAPITAL GAIN

only 1 bt Biggest&Very imp Amendmnt(for May2011 exam)

i.e.Sec47(xiiib) inserted-Conversion of Small Pvt Companies &Unlisted public companies into LLPs 2b EXEMPT FROM CAPITALGAINTAX subjct to FULFILLMENT OF CERTAIN CONDITIONS.

Related amendmnt in Sec.47A(4),72A,115JAA,32(1),43(6),49(1),49(2AAA),43(1)&35DDA

Finance Act 2010 - Sec44BB & Sec44DA - Tax treatment of Income of NR providing services or facilities for extraction or production of Mineral Oil

Sec.44BB&Sec.44DA /115A

*Now,if INCOME of NR is IN THE NATURE OF fee for technical services,it shall b taxable either u/s44DA or115A IRRESPECTIVE OF BUSINESS to which it relates.

*Sec44BB wud apply only in case where consideration is for services&other facilities relating to MINERAL OIL exploration,extraction,productn activities WHICH ARE NOT IN THE NATURE of tech services.

Finance Act 2010 - Sec.44AB.. Related amendments in Sec.44AD & Sec.271B

Related amendment in Sec44AD& Sec271B..

Sec44AD - Now it covers all businesses with Total Turnover/Gross Receipts upto Rs.60L & 8% of total turnover/gross recpt wud b the business income.

Sec271B-In case of failure to get a/c audited&Report filed,
Penalty =0.5%of turnover/gross recpt OR Rs.1.50Lacs whichever is less

ICAI Important Announcement for MAY Exams

PCC/IPCC Exams postponed:
1.KOLKATA Zone-I/II/III:Accounts
2.ASANSOL Centre:Cost&FM
New exam date for both:18.05.2011 at same time
No other changes

	Announcement as to reschedule of CA May-2011 Examinations in Kolkata and Asansol - (14-03-2011)
	Notification as to reschedule of CA May-2011 CA Examinations in Kolkata and Asansol - (14-03-2011)

Finance Act 2010 - Sec44AB - Increase in Threshold Limit for applicability of Tax Audit

Threshold Limit of Turnover/Gross Receipt for applicability of Tax Audit u/s 44AB has been increased

from Rs.40Lacs to Rs.60Lacs for Business
&
from Rs.10Lacs to Rs.15 Lacs for Profession

Finance Act 2010 - Sec 40(a)(ia).. Related amendment in Sec201(1)

Related amendmnt in Sec201(1)

Earlier,Simple Intt was payable @1%p.m. in both the failure i.e. failure
1.to deduct tax
2.to deposit aftr deductn

Now by amendment,Intt rate has been changed:
1.failure to deduct-1%pm
2.failure to deposit aftr deductn- 1.5%pm

Example

Q.On1.7.2010-Rs.40000 paid without TDS.
On28.2.2011-Rs-50000 paid & TDS@10% Rs.9000 and deposited it on 22.6.2011.Compute intt u/s201(1)

Ans.1%on 4000 for 8Months
&1.5%on 9000 for 4months
=Total860/-

Finance Act 2010 - Example on Sec 40(a)(ia)

*Example on Sec40(a)(ia)
If Tax deducted on Royalty paid to Mr.AD,a resident,during PY2010-11at any time between April2010to March2011&deposited by31st July/31st Sep,then SUCH EXPENDITURE (here,Royalty) wud b allowed as deduction in PY2010-11(A.Y.2011-12)

Finance Act 2010 - Sec. 40(a)(ia) ExtentedTime Limit for depositing TDS

Sec.40(a)(ia)
 
*Earlier,specified pymnt was disallowed if No TDS or after deduction it had not been paid as below:
April to Fab-on or b4 31st March
March-on or b4 due date u/s139(1) i.e.31st July/31st Sep
 
**Amendment-New scheme
+Tax is reqd 2b deducted in P.Y.
+Time Limit 4 deposit of Deducted Tax :April to March (i.e. entire year) - on or b4 due date u/s139(1) i.e.31st July/31st Sep
+ if deducted tax is deposited after due dt,then it wud b allowed in Year of Payment

Finance Act 2010 - Answer of Example on Sec35AD

Example onSec35AD
Ans.CapExp(200L-150L)=50L
CapExp incurrd prior to1.4.2010(i.e.prior to commencemnt of business)& capitalized it=50L
Total deductn u/s35AD=100L

Finance Act 2010 - Example on Sec35AD

Example on Sec35AD
Que.SHAYVIDZ Aqua Ltd commenced operation of business of a New3star hotel on1.4.2010.
Capital Exp Rs.50L (Jan2010toMar2010)& capitalized it.
In P.Y.2010-11,Capital Exp Rs.200L(inclusive of Rs.150L for acquisition of Land)
Compute deduction u/s35AD assuming that no Deduction claimed under chapter VI-A

Finance Act 2010 - Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"..Related amendment in Sec80A....

Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"..Related amendment in Sec80A

Once assessee has claimed benefit of deduction u/s35AD for a particular year in respect of specified business, he cannot claim benefit under Chapter VI-A for the SAME OR ANY OTHER YEAR and VICE-VERSA

Finance Act 2010 - Sec35AD - Change in Condition of "Specified Business"

Amendment in Condition for Specified Business No.3

– must have made available the PRESCRIBED CAPACITY for USE on COMMON CARRIER BASIS any person otherthan assessee or its associated person. PRESCRIBED CAPACITY by Regulations of Petroleum & Natural Gas Regulatory Board is –

1.atleast One-third for Natural Gas

2.atleast One-fourth for Petroleum Product

Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"

Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"

*Last yr-1. Cold Chain facility

2. Warehousing facility

3. Operating Cross-country natural gas/crude/petroleum oil pipeline netwrk

*Addition inFA2010-4.NEW hotel ofTWO-STAR or above in India

5.NEW hospital in India with atleast100beds for patients

6.Developing/building HOUSING PROJECT forSLUM Redevelopmnt/rehabitation under scheme of CG/SG&Notified byCBDT

if OPERATIONS are COMMENCED on or after 1.4.2010