Income Tax : Understand deemed ownership under Section 27 of the Income Tax Act, 1961. Learn about conditions where non-legal owners are treate...
Income Tax : Learn about income from house property, including self-occupied, let-out, and inherited properties. Explore tax implications, dedu...
Income Tax : Explore the intricate details of different heads of income, including salaries, and their tax implications. Gain insights into tax...
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Income Tax : While presenting interim Budget 2019-20 FM proposed to exempt the levy of income tax on notional rent on a second self-occupied ho...
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Income Tax : Analysis of ITAT Ahmedabad's decision in Mansha Textiles vs ITO case. ITAT allows interest deduction u/s 24(b) when income is rece...
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A Revised Discussion Paper (RDP) on Direct Taxes Code (DTC) has been released by the CBDT on 15th June, 2010, taking into consideration the vital and critical issues raised by the various stakeholders on the DTC. It is extremely satisfying to note that six of the eleven significant issues identified in the RDP are as per the specific suggestions of the Direct Taxes Committee of the ICAI.
Revised Discussion Paper on the Direct Taxes Code: The draft Direct Taxes Code (DTC) along with a Discussion Paper was released in August 2009 for public comments. Based on the Feedback, the Revised Discussion Paper has now been released for public comments, before Finalizing the Bill for introduction in Parliament.
Where the assessee as the owner of the building was only exploiting the property as owner by letting out the same and realizing income by way of rent, such rental income was liable to be assessed under the head `income from house property’
As per the lease agreement, the assessee agreed to create a laase in favour of the tenant m respect of the premises, which is part of the building known as ‘The Forum’. The tenant as well as its bonafide visitors, guests, customers, clients, employees have a right of ingress to and egress from the premises by use of entrances, landings, passenger elevators, service elevators, escalators etc.
When the interest payable on the original loan is not allowable u/s 24(1)(vi), then the interest paid or payable on the second loan for repayment of original loan is also not allowable.
5. From the facts of this case, it transpires that the Hon’ble Supreme Court has not laid down any universally applicable principle that income from immovable property, be invariably taxed under the head ‘Income from House Property’. It was on the consideration of the cumulative effect of all the factors prevailing in case, which have been noted above, that the income from immovable property was held to be taxable under this head
5.11 Now coming to the merits of the case. For this purposes, we are required to consider the scheme of taxation of income from house property. Section 22 says that the measure of income from house property is its annual value. The annual value is to be decided in accordance with section 23. Sub-section (1) of section 23, by virtue of the amendment with effect from the assessment year 1976-77
30. In our opinion, the assessee must succeed on his Ground. There is no dispute about the fact that the assessee being an employer made the valuation of the perquisite provided to Mr. Brian Brown at Rs. 90,40,880/-. The definition of the salary is given in section 17 of the Act and as per the said definition salary includes perquisites. The perquisites in its normal meaning means direct and indirect benefits
3. At the threshold on behalf of the appellant, the learned counsel submits that the concept of ownership considering the provisions of the Transfer of Property Act read with Registration Act is different in the context of the provisions of the Income-tax Act. What is to be considered for the purpose of Income Tax Act are the provisions of section.
5.1 The Act mandates a particular head for each type of income, so that the same has necessarily to be assessed under the said head and in the manner provided under the relevant Chapter. As such, the assessee’s contention of being contractually obliged to bear the said expenditure under the relevant (rent) agreement would be of no moment; the assessee being entitled to claim only the deductions as enumerated u/s. 24 of the Act in the computation of its income assessable u/s. 22.
