The Tax Preparation Blog

Posts Tagged ‘income-tax’

Question: What rules govern monetary gifts to adult children?

I would like to give some money to my adult children. I will NOT have a taxable estate at the time of my death, Does gift tax still apply to amounts over $10,000? Does income tax apply?

Answer: You can give more than the minimum as long as you fill out the form for the IRS which credits this amount to your eventual “total estate”..

Personal Finance: Prince looking like more of a pauper

Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain “signatures” by someone other than the actual author will be removed.

Myth #1: There’s income tax on a gift over 13K

Question: I have a house in Mumbai. But I stay in Hyderabad for job. Can I claim tax deduction for mumbai house?

I have a house in mumbai . I stay in a rented house in hyd ( for job).
. Can anyone explain what is the meaning of self occupied. Need that says i needs to stay in mumbai , or my dependents stay in mumbai or should I keep vaccant.
Right now I do not have any income from there and my family stays there.
Can any one explain if can i claim both HRA and Home loan tax deductions as per india tax laws.

Answer: Self occupied means not rented out. If your family is residing in the Mumbai house or if it is vacant then it means self occupied.

If you are receiving HRA then you can claim exemption on HRA u/s 10(13A). Even if you rent out the Mumbai house, still you can claim exemption on HRA because you stay in a rented house in Hyderabad.

You can also claim benefits u/s 80C & 24(b) on home loan for Mumbai house.

India tackles deficit in budget

India vowed Friday to rein in its gaping public deficit with a new budget that counts on higher tax revenue and sales of stakes in state firms to sustain the government’s flagship social spending.

Д.Медведев.Проблемы инвестиционного климата.02.02.10.Part 1

Question: Regarding LTA (Leave Travel Allowance)?

Hi All,
Beginin June 09, im gonna be flying to Andaman & Nicobar Islands for a vacation trip. Can this be claimed as LTA (leave travel allowance)? Is this acceptable by the Income Tax dept of India??

Anyone?

Answer: You can claim the travel expenses under LTA. Please preserve the airticket foil/bus tickets or rail tickets and attach with your claims.

FAQ: How to claim leave travel allowance

Here’s all you wanted to know about how to claim your leave travel alowance but did not know whom to ask.

Question: How to file the income paid to non resident alien in foreign country?

We are an organization in US. We want to outsource software coding to a firm in India (so that makes the work as NON US work and the income to be paid to non resident aliens). Now we are paying them for the software they develop for us. How do we report this to IRS? What form do we need to file for reporting income given out so that they pay taxes in their own country but have nothing to do with US taxing while we still get to write it off in our expenses to IRS.
Well what form should we use in that case so that we report income that we are giving out to the non resident alient company (registered in India) as an expense to us and get it written off to IRS?

the work would be done in India (non US work) and the payment would be made to non US person (citizen of India, company registered in India, so non resident alien)

Answer: They are simply paid as any other supplier of goods or services. This is not an employee income issue, it is a contractual issue with another company.

As a purchased product, it is deductible on your side, and whether they pay income tax in India is, quite frankly, not your problem, any more than it is if a US supplier fails to properly deal with their own tax situation.

SC stays ruling on tech firms deducting tax on payments to NRIs

The Supreme Court has stayed the Karnataka High Court ruling that asked technology firms to deduct tax on all payments made to non-residents on software purchases.

India Government Incometax Website Hacked

Question: Calculate the “income from other sources as per income tax of India?

Dear All,
I need soultion of the following question:
Mr. Lalit an ordinarily resident in India earned the following incomes during
financial year 2008-09:

Rs.
Director’s fees 20000
Income from agricultural land in Pakistan 50000
Interest on postal saving bank account 1000
Dividend from foreign company 7000
Rent from sub-letting a house 262500
Rent payable by Mr. Lalit for the sub-let house 120000
Other expenses occurred on this sub-let house 10000
Winning from Race-course 123000
Interest on securities 40000

You are required to calculate ‘Income from Other Sources’ of Mr. Lalit for the Assessment
year 2009-10.

Kindly help me by emailing the proper solution of this question.

Thanks & regards
Jitendra

Answer: What is this? Are you asking us to do your home work / assignment????

HMT

Niko Reports Results for the Quarter Ended June 30, 2010

CALGARY, ALBERTA–(Marketwire – Aug. 12, 2010) – Niko Resources Ltd. (TSX:NKO) (“Niko” or “the Company”) is pleased to report its financial and operating results, including consolidated financial statements and notes thereto, as well as its managements’ discussion and analysis, for the quarter ended June 30, 2010, the first quarter of Niko’s fiscal year. The operating results are effective …

Suvarna TV – Now prepare your income tax return in India for FREE (Kannada)