If you are a non-resident under the Income Tax Act, then any income accrued or earned outside India is not taxable in India.

The transaction between two nonresident foreign citizens is with respect to assets which is situated in India.

The moment you convert business assets into capital assets i.e. investment, business income arises.

I am an individual and an interior designer.

I am an individual and a resident of India. I have transferred USD 400,000 under LRS to my foreign bank account in the US.

Tax Queries by Jayesh Dadia, Chartered Accountant.

Tax Queries by Jayesh Dadia ,Chartered Accountant.

Tax Queries by Jayesh Dadia ,Chartered Accountant.

I am an individual and in service with a corporate organisation. In FY 2021-22, I joined a MNC that paid me a joining bonus of ₹ 10 lakhs with the condition that I should work with them till March 2025.

It is a settled law that assessment cannot be made in the name of an assessee who has already died.

A reversed mortgage loan enables a senior citizen to avail of periodical payment from a lender against the mortgage of his or her house while remaining the owner and occupying the house.

Tax Queries Jayesh Dadia Chartered Accountant 

The provision of Section 281 of the Income Tax Act can be invoked only if there is sale, mortgage, gift, exchange or any other mode of transfer of your asset in favour of any other person. The assets referred to in Section 281 are specific and tangible in nature.

Tenancy right is a capital asset. Therefore, consideration received on surrender of tenancy right is subject to Capital Gain Tax. It seems that you have been staying there for more than three years. Therefore, the entire capital gain would be in the nature of long-term capital gain.

Tax Queries By Jayesh Dadia Chartered Accountant

My father died during the financial year 2020-21. As per my father's legal will, an executor was appointed and the assets are to be distributed amongst myself, my brother and my mother. Pending distribution, I have filed the return of my late father's estate as an individual. Is this action correct?

I am holding shares of a private limited company with an investment value of ₹1 crore. The company is now under liquidation. It has ₹4 crore in the bank account which is accumulated over a period of years out of the profit of the company. I was told by the liquidator that on distribution, they will deduct 10 per cent withholding tax. Can you clarify whether the action of the liquidator is correct and what would be the tax implication in my hand?

Tax Queries By Jayesh Dadia Chartered Accountant 

I am employed with a closely held private limited company. During the current financial year, I resigned and claimed encashment of leave salary of ₹ 3 lakhs. The employer wants to tax this amount since the same is encashment not on retirement but on resignation. What is your view? 

I am an individual and doing F and O activity (derivatives) at Nifty through a registered broker.

I am a non-resident settled in Singapore. I hold investments in equities of Indian listed companies.

Tax Queries by Jayesh Dadia, Chartered Accountant

Tax queries by Jayesh Dadia Chartered Accountant 

I am an individual. The Indian Railways had acquired my land situated in my native village for a total consideration of ₹10 crore as compulsory acquisition. Although the compensation was determined in 2016 I received the same in the current financial year along with interest of ₹2 crore.

I am an individual. I own four residential houses.

Tax queries by Jayesh Dadia Chartered Accountant

In the current financial year I have signed one sale agreement as a power of attorney holder on behalf of the property owner. The sale consideration was received in my name and was credited to my bank account which subsequently I have transferred to the account of the owner.

Tax Queries by Jayesh Dadia Chartered Accountant

In the latest Olympic Games India’s performance was at an all-time best.

I am an individual. For the financial year 2020-21, TDS has been deducted on my rental and interest income.

Senior citizens above 60 years of age and very senior citizens above 80 years of age are entitled for various benefits under the Income Tax Act.

Conveyance allowance will also be considered as a perquisite. However, it is exempt to the extent of amount actually spent.

I am a senior citizen of 62 years and my wife is 58 years old. We both have earned long-term capital gain on sale of shares and old ancestors’ property. We also have regular interest income. Kindly let us know whether we are liable to pay advance tax for the financial year 2021-22 and if yes, then what is the time limit?

I am a resident of Bangalore. I owned two residential houses at different locations but in Bangalore itself.

I am presently working with an MNC. On my application, the employer has provided an interest-free loan to me. Is there any tax implication?

It seems that you have always held the watches for your personal use.

As stated by you, the residential flat inherited by you from your father was acquired by him in 1966.

Jayesh Dadia Chartered Accountant

In a bid to make the taxation procedure and its follow-up as transparent as possible, the central government has launched a new platform, details of which are explained by Jayesh Dadia

Tax Queries By Jayesh Dadia Chartered Accountant

Tax Queries By Jayesh Dadia Chartered Accountant

Tax Queries Answered By Jayesh Dadia

I am an individual having interest and capital gains income for the financial year 2019- 2020.

I sold a residential flat during the current financial year 2019-20.

I have received a notice under section 148 of the Income Tax Act for the assessment year 2013-14 requiring me to file Return of Income. I have not filed Returns of Income since assessment year 2012-13 as I did not have any taxable income in all these years. I am dependent on my son who earns and files his Return of Income regularly. What action should I take or tell me the procedure I need to follow and if I do not follow the same, what would be the consequences? 

My father died leaving house property to my mother, myself and my brother. The property was jointly owned by my mother and my father. Therefore, the society has transferred the flat in the name of my mother. Now we all have decided to sell the flat and distribute the sale consideration equally. Can we first sell the flat and distribute the sale consideration or is it that myself and my bother first become members, then sell the flat and take the sale consideration separately? Can you explain what are tax implications ?

From your question it is very clear that the builder has not honoured the purchase agreement entered with you.

 I am an individual working with a private company as an employee for almost 10 years. I have not availed much leave and, therefore, as on today, I have a credit of leave of almost nine months, which is equivalent to Rs.6 lakh. As per the company’s rules, I can encash the same even if I am in continuation of service. Kindly let me know whether there is any tax implicationif I encash the unavailed leave and receive Rs.6 lakh? 

I am an individual having HUF. The annual income of HUF is around Rs.10 lakh. The HUF has paid life insurance premium on behalf of the members of family. Can HUF get deduction under section 80C of the Income Tax Act and what is the maximum ceiling?

Individual Taxation 
No change in slab and tax rates. Present rate continue for the next financial year 2019-20.

From the financial year 2018-19 (assessment year 2019-20), all salaried employees (including pensioners) will now be allowed a Standard Deduction of Rs.40,000 while computing their salary income. The amount of deduction will be Rs.40,000 or amount of salary whichever is less. However, the exemption given to employees in respect of reimbursement of medical expenses and conveyance allowance has been withdrawn. 

Queries Related to Tax

I have made a public appeal for contribution/donation for medical treatment of my son as I cannot afford his medical treatment. There was a good response and I am likely to receive around Rs.10 lakh. The cheque will come in my name or my son’s name. The issue for your consideration is whether such money collected and spent for medical treatment is chargeable to tax under the Income Tax Act?

Under Section 56(2)(x) the Income Tax Act, any amount received in excess of Rs. 50,000 is taxable in the hands of recipient.

I am an individual and was out of India for more than 200 days in the financial year 2018-19. Am I a non-resident under the Income Tax Act for the financial year 2018-19 relevant to assessment year 2019-20 ? 

I am an individual and in the current financial year I have sold shares of a closely held company and made Long Term Capital Gain (LTCG) of Rs 2 crore. I don’t own any residential house and I stay in my father’s house. 

The Finance Minister Piyush Goyal presented a very bold interim budget of the Modi government on February 1, 2019. This is the first time aFinance Minister has given concession in the direct tax provisions in the interim budget.

I, along with my three friends, are jointly purchasing an immovable property of Rs 1.8 crore. All four of us will pay separately the purchase consideration, although the agreement is one. Are we supposed to deduct tax at 1% while making payment of purchase consideration as prescribed under section 194IA of the Income Tax Act? 

I am an individual and I own various paintings which I had acquired almost 20 years back and always treated them as personal assets. If I sell these paintings, these would fetch Rs2 crore. I am planning to sell these paintings. Could you please explain what are the tax implications?

Under the law, as on today, you can file the return of income only for last financial year 2017-18 relevant to assessment year 2018-19 Jayesh Dadia Chartered Accountant I am an individual holding 90% equity shares in a private limited company which owns residential property.

I am an individual. I was told that gift from relatives is exempt and not taxable. I have received a gift of `10 lakh from my cousin brother, i.e. from my mother’s sister’s son. As this was a gift from a relative, I have not offered it to tax in my return for assessment year 2018- 19.

Under Section 54 of the Income Tax Act, any individual who sells residential house, which is a long term asset, can reinvest the entire capital gain in a new residential house

These days, the system immediately intimates you that your return is defective since you have not paid tax or it may process the return and raise tax demand on you

The long term capital gain in respect of listed securities would be taxed @10%, while other long term capital gain is taxable @ 20%. The short term capital gain in respect of STT paid transaction is taxable @15% while other short term capital gain is taxable @30%, plus applicable surcharge. 

If your income exceeds Rs 5 lakh and you file your ITR before December 31, 2018, then you are liable to pay late filing fees of Rs 5,000. But if your income is less than Rs 5 lakh, then late filing fees is only Rs 1,000. 

Can you tell us about the amendments in respect of investment in capital gains bonds?

At present,an assessee can claim deduction upto Rs 50,00,000 from Long Term Capital Gain (LTCG) on the sale of any capital asset by making an investment in specified bonds under section 54EC of the Act within six months of the date of sale.

We are a partnership firm where I, along with one Mr B, are the partners having profit share of 40% and 60%, respectively. The firm has unabsorbed losses of Rs10 crore upto the Assessment Year 2017-18. Due to the losses, Partner B wants to resign and in his place one Mr C is ready to join. Please let us know whether there will be any impact on the allow ability of carried forward losses in the subsequent years with myself and Mr C as partners? 

ITR Forms The CBDT has notified 7 types of ITR forms which are applicable for the assessment year 2018-19 in respect of income earned during the financial year 2017-18. ITR 1 (Sahaj), ITR 2, 3, 3 & 4 are applicable to individuals and HUFs. ITR 5 is applicable to firms including LLP,AOP, BOI, legal authority and artificial judicial person ITR 6 is applicable to companies, other than companies claiming exemption under section 11 ITR 7 is applicable to persons who are engaged in the business of charitable activities and are required to file their returns under section 139( 4A)to (4F) of the Act 

I have sold my residential house on March 15, 2015. I have reinvestedthe entire capital gain of Rs 4 crore in a new residential flat which was under construction. Even after three years, the builder could not complete the building and I have still not got the possession of the new house. What would be the tax implications as I understand that new property must be acquired within three years? 

I want to know how to decide the residential status of an individual under the Income Tax Act and its implications?

The Finance Bill 2018 has proposed certain amendments with regard to the scheme of taxing Long Term Capital Gain (LTCG) arising on transfer of listed equity shares and units of mutual funds. Under the existing tax regime, LTCG arising from transfer of long term capital asset on which STT is paid is exempt from the income tax u/s 10(38) of the Income Tax Act. However, the present tax exemption was misused and abused as a tool of tax evasion.

Present rate continuous for the next financial year 2018-19. However, it is proposed to increase the education cees of 3% to 4% under the new name of “Health & Education Cess”