The Tax Preparation Blog

Posts Tagged ‘incometax’

Question: Tax Return H1B : Can I fill a blank 1040NR and attach 1040 with schedule A?

I am a dual status alien with no income for Non-residential portion as I left for India in Oct. Thus the only income I have is for the residential portion.

Appreciate your help

Answer: Yes, you can file a dual-status return, if you select an earlier termination date.

Follow the dual status rules (in reverse) shown in publication 519.

You would fill out the 1040 with schedule A (labeled dual status statement), using only income and deductions through October.
You would attach these to the 1040NR (labeled dual status return). The 1040NR would not be blank–it’s just not going to show any additional income/deductions for October to December.

Virtually no credits are allowed, etc.

Cypress Reports First-Quarter 2010 Results

SAN JOSE, Calif.—-Cypress Semiconductor Corp. today announced that revenue for the 2010 first quarter was $202.3 million, up 4.3% from $194.0 million for the prior quarter, and up 45.2% from $139.3 million for the year-ago period.

Income Tax officials grill Lalit Modi during 10-hour raid

Question: Income Tax on Rental Properties in India for NRI?

I m a NRI and have a PAN Card from india ,also has a property which is rented .

Total Rental Income = 3,60,000 Rupees

Home Loan Intrest Payment= 1,40,000 Rupees
House Improvement = 40,000 Rupees
Renting Agent Commision= 15,000 Ruppes

I’m a Female, and this is the only income I have, I dont have any income in India as well as in other country where I m residing.

as per tax bracketts I should be eligible NOT To file taxes for this year.
because for woman your earned income should be more than 1,80,000 rupees.

Can some help me over here.

Thx.

Answer: * Home loan interest is allowed as deduction on Rs.1.4 lakhs

* House improvement is not allowed. Already there is a 30% standard deduction on rent. So Rs,40,000 is not allowed.

* Rental agents commission Rs.15,000 not allowed,

*Your income after disallowing 40,000+15000 is as follows:

3,60,000 is the rental income
1,08,000 Less 30% deduction for repairs and maintenance
———–
2,52,000
1,40,000 Less interest paid on housing loan
———–
1,12,000 Net taxable income. (No tax- below 1.8 lakhs.)
=======

The 30% deduction on rent is allowed even if you do not spend any amount on house repairs.

IT gets expenses report of IPL-2 from SA

The Income Tax department probing alleged irregularities in the funding and bidding of Indian Premier League franchisees has received reports relating to expenses incurred by franchisees in South Africa where the second edition of the T20 tournament took place last year.

Little_PAN_Card_Holder_Of_India

Question: Tax questions? Income tax in India?

I am doing freelance work on internet, so I wanted to know whether I have to show it as other income or somewhere else? which form I have to use? Although my tax Will be nil, but still I wanted to know. Also I wanted to know, I got married but my PAN number is with father’s name, if I file return as “married filing separately” can I use my husband name and new address?
Thanks of all of you.

To Jss, I have to file return only if I have income above 1,80000. I thought even if we do not have taxable income, we are suppose to file nil return. Is this rule changed? since when?

Answer: Is your question about Indian Taxes or US taxes ?

If your income is below taxable, then no question of any form or which head.

In India the PAN number will be with father’s name (Son of or Daughter of). The reason is father will not change and husband may change.

Nick Robinson

This campaign lacks Gene Hunt’s refreshing candour

Question: Can you sue your CPA or tax preparer if the IRS audits your tax returns and finds a mistake made by the CPA?

I was audited by the IRS for my 2004 federal income tax returns and they found an error, which then affected my 2005 federal returns. I am being charged interest for both years. I am appealing their decision but I would like for my CPA who prepared my returns to share in the mistake. Is it possible to sue your CPA for such mistakes and is it common to sue the tax preparer for mistakes on income taxes? It appears that the CPA was either not aware/familiar with a tax law or just made a mistake. Whatever the case, I was audited and I have to pay for this mistake because I signed the tax returns. Please help!

Answer: You can’t sue the CPA for the tax amount, you would have had to pay that amount anyways. As for the interest, you had use of the money for the time that you didn’t pay the tax on it, but you could ask the CPA to pay for the interest. If there is any penalty the CPA should definitely pay for that. Also, you might see if you can some of the tax prep fee you paid returned to you. You might also want to look for another tax preparer, one who is more up-to-date on tax law changes. If the CPA refuses to pay anything, then you could sue him, more than likely in small claims court, and also report him to your state’s CPA society.

April 15 looms for tax procrastinators

Procrastinators have little more than a week until the April 15 deadline to turn in state and federal income taxes. The good news is there are several filing options available. Tax associates or accountants can prepare them or people can fill the forms out themselves by using computer tax software or paper forms or going online.

Elaine Brown: “Prepare for full blown slavery!”

Question: What are some ways to save tax in India for a salaried employee?

Other than stuffing it in pillows and sofas?

I’m a salaried professional and will be working in India but the pay will be banked into my Singapore bank account as usual. The tax grade is 30% so is there any way to minimize it by investing it in bonds or trusts?

Any links would help.

Answer: For salary breakup to get maximum deductions, read:Income From Salary http://mytaxes.in/index.php?topic=17.0

Read about Investments based Deductions from the Income: Section 80C, 80CCC, 80CCD, 80CCE http://mytaxes.in/index.php?topic=24.0

No tax on payment to UK, US affiliate for professional support

Payments made by an Indian arm of a multinational to its US or UK-based affiliate for professional support service will not be taxed here in India, the Authority for Advance ruling has said in a recent ruling.

Outsourcing Overseas – Internet Marketing Strategy