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Old 6th January 2017, 18:58   #1066
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I have bought 54EC bonds twice in the past three years. First time for my wife due to the silly circle rates in Lucknow for commercial property, and the second time last year when I sold our old home. The returns are not bad when you vector in the tax savings.

We have also received four certificates - three bronze for my son, daughter-in-law and yours truly, and one Gold for my HUF (there was a major property sale).
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Old 9th January 2017, 16:07   #1067
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Originally Posted by greenhorn View Post
For my 2012 returns, the IT dept raised a demand, and my CA tells me that apparently in the IT dept database, one of the TDS payments by my employer is not reflecting. he has filed revised returns every time i ask him if there is an update, he files a revised return and says is waiting for an update

in the meantime he says someone seems to have paid some advance tax for the 2012 year into my account, and it has become complicated.


I still haven't gotten any income tax returns for the past 4 years. My CA says we have to wait for the IT dept to wait for them to come back on the latest set of revised returns he filed a few months back - and this according to him will take few more months.


Is this expected? for 2014 i have a significant amount of tax returns pending due to me being abroad most of the FY, and I have not seen any of it.
1. Your CA is lying. It is always the tax deductor who has to revise the return. So your employer has to revise their TDS return. I presume your CA is charging you a fee for revision, when in reality he has done nothing.

2. If A has deducted tax on behalf of B but in A's return, A has erroneously shown the deduction on behalf of Z, B is going to insist that A correct his mistake pronto, otherwise B cannot claim credit of the tax deducted. Z can do nothing - he does not even know who A is.

3. You can download your returns of past years from the income tax dept.'s website. You can also see all pending demands raised by the tax dept. If your CA has used his own password and does not share it with you, you can do a password reset (presuming your mobile no. is registered on the tax website).

I repeat what I had mentioned a few days ago - change your CA.
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Old 15th January 2017, 20:46   #1068
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Hi team,

I did some investing through a portfolio manager and I'll have some profits from derivative trading by March. Apparently this qualifies as business income and would entail additional tax filing hassle. (I'm a salaried professional otherwise).

Apparently if your tax due is greater than 10,000, you need to pay advance tax accordingly. So my tax due from F&O trading would not be that much, but if you combine my income tax (for which TDS is being deducted already) my tax due would safely exceed this threshold. Do I need to worry about paying advance tax?
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Old 16th January 2017, 09:49   #1069
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I did some investing through a portfolio manager and I'll have some profits from derivative trading by March. Apparently this qualifies as business income and would entail additional tax filing hassle. (I'm a salaried professional otherwise).
Seems that PMS income is Taxable. They seldom hold for a year plus, so income from stocks will also become taxable. I invested into a PMS once but after a year and a half pulled out. After taxes the returns are not worth the hassles. Some Arbitrage Funds also invest in Derivatives, so you can go there and remember the returns are no taxable after one year.
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Old 16th January 2017, 14:30   #1070
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Originally Posted by sgiitk View Post
Seems that PMS income is Taxable. They seldom hold for a year plus, so income from stocks will also become taxable. I invested into a PMS once but after a year and a half pulled out. After taxes the returns are not worth the hassles. Some Arbitrage Funds also invest in Derivatives, so you can go there and remember the returns are no taxable after one year.
I just started out with mine, am satisfied so far, but it's too early to say conclusively. Will have to evaluate the post-performance fee post-tax returns, but they're doing well even when the markets are flat/volatile, so I'm quite optimistic about them. I do maintain a separate mutual fund portfolio of my own.

Since they trade through a demat account that is owned by me, the fact that the profits are through a PMS is of no significance. As far as taxation is considered, I have invested in some derivatives, profits from which constitute a business income, and I need to decide whether to pay advance tax or not.
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Old 31st January 2017, 10:58   #1071
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Hello All,

Could anyone suggest a good chartered accountant firm in Bangalore, preferably East Bangalore - somebody who is very good with Individual & Company Tax Returns ?

If the firm is really good and adept at their work, I do not mind paying a premium charge.

Please let me know.

Thanks,
SV
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Old 31st January 2017, 12:00   #1072
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The NPS that I have through my employer became more interesting yesterday when the finance team indicated that I cannot claim additional 50000 deduction since the amount that is getting deducted from salary is the 'employer' contribution.
So, for the 80CCD (1B) section, I need actually make another contribution of Rs. 50000.

Has any BHPian claimed 80CCD (1B) benefits?
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Old 31st January 2017, 13:27   #1073
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Originally Posted by S_U_N View Post
The NPS that I have through my employer became more interesting yesterday when the finance team indicated that I cannot claim additional 50000 deduction since the amount that is getting deducted from salary is the 'employer' contribution.
So, for the 80CCD (1B) section, I need actually make another contribution of Rs. 50000.

Has any BHPian claimed 80CCD (1B) benefits?
Yes you will have to make another 50000 contribution for 80CCD-1B, also if I am not wrong you are already getting tax benefit for the contribution made by the employer (cut in your CTC) so no point in putting it under 80CCD-1B
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Old 31st January 2017, 14:46   #1074
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Hi team, recently I sold my flat. The initial proceeds ( about 70%) has been electronically transferred to my SBI account. Awaiting the balance payment in a couple of weeks. Once the final payment is received how long do I have to move this amount to a Capital Gains Account?
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Old 31st January 2017, 15:10   #1075
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@rajivr1612 ASAP if you do not plan to invest in specified securities or another house right away.
You only need to cover the capital gain part of proceeds and not all of it.
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Old 31st January 2017, 15:16   #1076
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Quote:
Originally Posted by sudev View Post
@rajivr1612 ASAP if you do not plan to invest in specified securities or another house right away.
You only need to cover the capital gain part of proceeds and not all of it.
Sorry not clear to me. Could you please explain with some figures?
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Old 31st January 2017, 16:02   #1077
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by rajivr1612 View Post
Sorry not clear to me. Could you please explain with some figures?
What he means is that, if the property was held for more than 3 years before selling it off, then only the long term capital gain portion needs to be invested into either specified securities or new property.

Eg: Property bought for 50L, and sold off for 75L after 3 years.

In this case, the capital gain portion would be 20-22L (taking into consideration the indexation benefit of 50L buying value).
Only this 20-22L needs to be invested back into specified securities or property, to avoid paying Long Term Capital Gain tax, to the tune of 20%.

Hope this clarifies.
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Old 31st January 2017, 17:08   #1078
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Quote:
Originally Posted by vinit.merchant View Post

What he means is that, if the property was held for more than 3 years before selling it off, then only the long term capital gain portion needs to be invested into either specified securities or new property.

Eg: Property bought for 50L, and sold off for 75L after 3 years.

In this case, the capital gain portion would be 20-22L (taking into consideration the indexation benefit of 50L buying value).
Only this 20-22L needs to be invested back into specified securities or property, to avoid paying Long Term Capital Gain tax, to the tune of 20%.

Hope this clarifies.
Quote:
Originally Posted by sudev View Post
@rajivr1612 ASAP if you do not plan to invest in specified securities or another house right away.
You only need to cover the capital gain part of proceeds and not all of it.
Gentlemen, thanks a lot for your inputs. Now things are clear.
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Old 31st January 2017, 19:59   #1079
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by mrvenka View Post
Yes you will have to make another 50000 contribution for 80CCD-1B, also if I am not wrong you are already getting tax benefit for the contribution made by the employer (cut in your CTC) so no point in putting it under 80CCD-1B
Yes. Good point.

Now, our finance guys have closed their investment declaration portal.
So, is it possible for me claim this 80 CCD (1B) deduction directly while filing my ITR 2? I can make an online payment of Rs. 50000 on the NPS portal directly, though I am still evaluating if this 'tax deferrment' is good enough or just pay 30% tax and invest the rest in equities.
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Old 9th March 2017, 01:17   #1080
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

My friend started a Boutique 3yrs back, and had been operating her business from home and the financial transactions from her family's savings accounts (since it was a very small business initially).

Last week while discussing demonitisation she said that since 1.5 years her business had done well but when she went to a CA to see if she needed to pay taxes, her accountant made her pay a hefty amount of Tax. I then suggested her to simply consult some other CA/accountant for a 2nd opinion without hesitation.

Today she went to another guy & was explained that the earlier CA had made her pay IT for 2 years with high income by drawing up 2 balance sheets for 2 yrs & showing a few FD savings as loans & rest of the earnings as "Commissions", and they'd made her pay Income Tax as per slab rates by filing some form ITR1 viz apparently mainly for salaried people.

This new CA says that she should've instead filed Returns under Form 4S where she could've claimed Presumptive Net Profits under Section 44AD at just 8% of turnover (even though it was much much higher) & calculated tax based on that.

And now he has asked her to decide if she wants to apply for filing revised returns with the beneficial provisions of 44AD & claim refund (of almost 70-80% of amount earlier paid). But he senses a great deal of risk of scrutiny by AO on the earlier voluntarily self declared returns and that since she made a few FDs, they would be considered as her income & it might complicate the matter adversely.

She's again asking for advice on filing for revised returns, but I don't know much about this & any risks. What should I suggest ?

Last edited by WorkingGuru : 9th March 2017 at 01:42.
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