Fire your tax related quieries and i would get it solved!!!

diosys · #**391** 25th August 2008, 02:53 PM

Quote:

Originally Posted by vasa1

A senior citizen makes a deposit u/s 80C. This has a lock-in of 5 years. On the basis of the 80C benefit, tax is not required to be paid for the relevant year. Now, a couple of years later, the senior citizen dies. What happens to this FD? Is it still in lock-in? Who reports and pays tax on the deceased senior citizen's FD?

In general, what are the problems tax-wise that the survivors have to deal with and be prepared for?

There would be no tax liability in such a case on anyone....The FD cannot be redeemed before the due time and would be given to the person who is the legal heir but only on completion of the said 5 years.

vasa1 · #**392** 1st September 2008, 08:43 PM

Quote:

Originally Posted by diosys

There would be no tax liability in such a case on anyone....The FD cannot be redeemed before the due time and would be given to the person who is the legal heir but only on completion of the said 5 years.

Diosys:
I googled for 80C + nominee and got the impression that the FD can be prematurely terminated by the nominee implying that there is no need to wait for the full five years.

From http://*********/legal/fullstory.php?id=14276859

Right of nominees

(1) In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.

(2) For the purpose of sub-paragraph (1), the surviving nominee or nominees shall make an application to the branch manager of the bank, supported by proof of death of the holder and of deceased nominee or nominees, if any.

and from http://www.hindu.com/2006/08/07/stor...0700871600.htm

In the event of death of a holder before maturity, the nominee will be entitled to encash the same "before or after maturity of the term deposit'' under Clause 13 of the scheme on application to the bank with proof of death of the holder.

diosys · #**393** 2nd September 2008, 08:56 AM

Quote:

Originally Posted by vasa1

Diosys:
I googled for 80C + nominee and got the impression that the FD can be prematurely terminated by the nominee implying that there is no need to wait for the full five years.

From http://*********/legal/fullstory.php?id=14276859

Right of nominees

(1) In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.

(2) For the purpose of sub-paragraph (1), the surviving nominee or nominees shall make an application to the branch manager of the bank, supported by proof of death of the holder and of deceased nominee or nominees, if any.

and from http://www.hindu.com/2006/08/07/stor...0700871600.htm

In the event of death of a holder before maturity, the nominee will be entitled to encash the same "before or after maturity of the term deposit'' under Clause 13 of the scheme on application to the bank with proof of death of the holder.

If that be the case then Vasa thank you for informing me also....I will look into it...

vinay8483 · #**394** 5th September 2008, 10:19 PM

Hi,

I am sorry to ask this question since you might have replied similar question earlier ,I couldn't read all the posts.
My Questions are:

1.I trade in intraday,short term and in F&O,so how to calculate the turnover for each?
2.Do i need to maintain any book of accounts,if yes how is that done
3.while filing return do i need to submit all the electronic contract notes printouts?
4.how to add this income in my salary income?
5.when is tax audit applicable in each case that is intraday trading and F&O.

please guide,it will be helpful to me.

diosys · #**395** 6th September 2008, 09:45 AM

Quote:

Originally Posted by vinay8483

Hi,

I am sorry to ask this question since you might have replied similar question earlier ,I couldn't read all the posts.
My Questions are:

1.I trade in intraday,short term and in F&O,so how to calculate the turnover for each?
2.Do i need to maintain any book of accounts,if yes how is that done
3.while filing return do i need to submit all the electronic contract notes printouts?
4.how to add this income in my salary income?
5.when is tax audit applicable in each case that is intraday trading and F&O.

please guide,it will be helpful to me.

Dear,

1.) Tax audit is to be done when one's turnover is above 40 Lacs...For those in other industry it is the basic sale achieved....But in the case of transactions of F&O there is a difference...

For the purpose of F&O transactions the limit of 40 Lacs is the profit or loss in absolute terms...Let me explain with an example....

Suppose you bought one lot of 150 shares of Financial Technology at Rs. 3000...Then you sold it at 3100....Therefore your profit is 100*150=15000...

Now you bought one lot of 1400 shares of HCC at 100 and then sold it for 110...so your profit if 10*1400=15000...

Third, you bought one lot of 8000 shares of IFCI at 60 and then sold it for 50...so you incur a loss of Rs. 10*8000=80000...

therefore for the purpose of determining the total turnover you achieved would be 15000(FTIL profit) + 14000(HCC profit) + 80000(IFCI loss) = 1,19,000....

it would not be the total transaction values but the absolute profit or loss incurred in the transactions...

I hope it is now clear .....

2.) Books of accounts are required of the income from business exceeds 1,20,000 so judge from yourself....In any case i suggest maintenance of books.

3.) NOTHING is to be attached with your ITR.....absolutely NOTHING !!!

4.) Very simple.....simply add both the incomes and then calculate the tax payable on them....

5.) Tax Audit is required when the sale exceeds 40 lacs....determine it according to the formula given to you in the Answer 1....

rkgoyal_98 · #**396** 7th September 2008, 03:40 PM

Hello,

While maintaining books i found that i have not counted income of interest on infrastructure bonds that matured in the year. income is about 6180 though i have paid excess tax on other parts about 800/-
kindly tell me if i can deposite the balance now, what method i should follow now. how much penality/interest shall i deposite
regards

diosys · #**397** 8th September 2008, 09:18 AM

Quote:

Originally Posted by rkgoyal_98

Hello,

While maintaining books i found that i have not counted income of interest on infrastructure bonds that matured in the year. income is about 6180 though i have paid excess tax on other parts about 800/-
kindly tell me if i can deposite the balance now, what method i should follow now. how much penality/interest shall i deposite
regards

Dear,

You can revise your return and file again....There would be no interest or penalty since there is a tax refund.

rajfal · #**398** 8th September 2008, 12:41 PM

Dear Diosys,

I do share trading in my own personal name through internet from my small office where I do not employ any person nor have I put up any advt./marketing board on my premises.

I do not carry out any other activity from this premise.

I would like to know whether I am liable to pay professional tax to local municipal corpn.?

Please advise...

Regards,

Raaj

diosys · #**399** 9th September 2008, 06:59 PM

Quote:

Originally Posted by rajfal

Dear Diosys,

I do share trading in my own personal name through internet from my small office where I do not employ any person nor have I put up any advt./marketing board on my premises.

I do not carry out any other activity from this premise.

I would like to know whether I am liable to pay professional tax to local municipal corpn.?

Please advise...

Regards,

Raaj

Dear Raj,

I am only competent to advice on taxation matters fiscal in nature. In the above tax matters i am as good as you...

Smart_trade · #**400** 10th September 2008, 08:50 PM

Quote:

Originally Posted by rajfal

Dear Diosys,

I do share trading in my own personal name through internet from my small office where I do not employ any person nor have I put up any advt./marketing board on my premises.

I do not carry out any other activity from this premise.

I would like to know whether I am liable to pay professional tax to local municipal corpn.?

Please advise...

Regards,

Raaj

Yes Raaj,professional tax has nothing to do with you put up board/employ people or even handle clients.It is even paid by salaried employees and Govt employees.What you have in mind is probably shop act registration and fees which will not be applicable to you.

Still consult the professional tax professionals but we are like you and we pay professional tax. Recently some of the traders here have got professional tax notices so dont be in arrears !!!

Smart_trade

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The Following User Says Thank You to diosys For This Useful Post:
vasa1 (25th August 2008)