Author: Sunny Shettipalli

31. Mr. Prakash is a member of HUF, and he throws his self-earned property into the common hotchpot of the family. The members are his elder brother, brother’s wife, their two minor sons and his own wife and two minor daughters. The self-earned property is Rs. 20,00,000 and it fetches income of Rs 3,00,000 Per annum. Asses taxable income of HUF.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Conversion of Self-Acquired Property into HUF Property Therefore, Mr. […]

30. The assessee is a naval officer, he is. planning to take 2 housing loans of Rs 20,00,000. The assessee seeks your advice if he gets the possession of property of the house only after one year. But he starts paying interest, will he get an income tax rebate? Advice properly.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Section 24(b) – Deduction on Interest for House Loan […]

29. The assessee and his wife owned a joint property with a joint home loan. which is given out on rent. The assessed share of the joint loan is 40: 60. Both are earning members and income tax assesses. In fact, the assessee is paying the entire EMI. Can both claim EMI as exemption and only assessee can claim since he is paying the entire EMI? Your client seeks your advice. Advice your client appropriately with reasons.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Ownership and Deduction – Eligibility In this case, both […]

27. The assessee is a retired employee, and he has income from salary pension. Along with pension and house property and from other sources. His taxable income for the financial year 2019 -202 was Rs 2,90,000. In the month of April 2020, he became a senior citizen. Since he attained 60 years of age his income is much below the exempted income of Rs.2,50,000 and Rs 3,00,000. He has filed nil return. The assessing officer assessed the income and levied tax and interest. You as the consultant advise the assessee.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Definition of Senior Citizen – Section 2(42A) of the […]

26. When a property is received on inheritance or as a gift, it is not taxable for the received. When the inheritor or receiver of this property sells it, capital gain aspiring to the sale of that property is taxable to him.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Section 56(2)(x): Gift Taxation Conclusion: The receipt of property […]

25. The assessee an NRI wants to sell the House Property of his father who purchased it 40 years ago and died leaving behind his heirs i.e. his wife, son and his two daughters. The assessee needs your advice on the following issues.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Capital Gains on Inherited Property – Section 49(1) & […]

24. Assessee, an individual, was entitled to 1/3rd share of the estate of his deceased husband. The remaining 2/3rd share was transferred to the name of the assessee’s minor daughter. The daughter’s share was deposited as a fixed deposit in the Bank, and the fixed deposit receipt was produced before the Court for safe custody until the daughter attained majority. Assessee preferred an application under section 197(1) seeking a certificate for non-deduction of tax with respect to interest accruing annually on such fixed deposit. However, the Income- Tax Officer rejected the application on the grounds that the income of the minor had to be clubbed with the income of the assessee for the purpose of taxation under the Act.

1. Facts of the Case 2. Issues in the Case 3. Legal Principles Covered A. Section 64(1A) – Clubbing of Minor’s Income As per Section […]