Only second flat to attract tax

Under section 23 of the I-T Act,1961,in such case,the annual value of the property shall be taken to be nil. If a person owns more than one house than annual value of one of the house of his choice can be considered as nil and the annual value of the other house(s) shall be determined for the purpose of computation of income from house property. Hence,in your case,as you own only one house,there shall be no tax implications in this regards.

In the proposed DTC,are there provisions to levy long-term capital gains tax if shares are sold through a recognised stock exchange and even after paying the STT?

-Surender Nagpal

Under the present Income Tax Act,capital gains arising on transfer of long-term capital assets,viz. shares/units of mutual fund,on which Securities Transaction Tax (STT) is paid, is exempt from income tax. As per DTC,the long-term capital gains (investment asset held for more than one year) arising on transfer of investment being equity shares of company or unit of equity-oriented fund and such transfer is chargeable to STT,then the capital gains arising on such transfer will be entitled to 100% deduction and accordingly there shall be no tax liability in your hands.

I have been filing I-T returns every year except in 2009. Can I file the return now?

– Sudhir Kapadi

As per section 139(4) of the I-T Act,1961,any person who has not furnished a return within the prescribed time limit may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before completion of assessment,whichever is earlier. So,in your case you can file return for the financial year ended on March 31,2009 up to March 31,2011 as a belated return. Also,keep in mind the interest payable for delayed payment. It may be noted that a penalty of Rs 5,000 may be levied under section 271F of the I-T Act which is at the discretion of the assessing officer.

I joined a partnership firm in December 2010,as senior partner operations. As per term decided mutually I receive a monthly salary and share in profits of the firm. I want to know whether I will be entitled to claim all the deductions which are available under the head Income from Salary?

-Raman Mohan

According to section 28(v) of the I-T Act,any interest,salary,bonus,commission or remuneration,by whatever name called,due to,or received by,a partner of a firm from a partnership firm shall be chargeable to income-tax under the head Profits and gains of business or profession. Hence,the salary receivable in a capacity as a partner shall treated as income from business or profession and you shall not be entitled to claim the deductions which are generally available under the head Income from Salaries. The profits received or receivable from the partnership firm shall be tax exempt in your hands.

* The writer is founder of RSM Astute Consulting Group

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