I am running a restaurant cum bar with annual turnover of less than Rs 30 lakh. I wish to take benefit of Composition Scheme under Goods and Service Tax Act as my turnover is less than Rs 75 lakh. Is this in Order?
n Composition Scheme under Goods and Service Tax Act, is not available to restaurants and caterers serving alcohol (liquor) for human consumption as provided in Entry 6b of Schedule III, of the Act. The Composition Scheme can be availed only by restaurants and food caterers serving food and non- alcoholic drinks.
I am a retired person of 59 years age. My gross total income from all sources is Rs 4.50 lakh. After claiming deduction under section 80C for LIC, PPF, is less than Rs 2.50 lakh. I have filed declaration for 15G with the banks for not deducting tax from my interest on deposits as informed by bank manager.
n Since your age is less than 60, you are considered as non-senior citizen. A non-senior citizen can file form 15G only, if his gross income is below Rs 2.50 lakh without claiming deduction u/s 80C. You should thus withdraw the form immediately to avoid penal action for giving false declaration.
I have claimed deduction of Rs 10,000 for interest earned on my fixed deposit and recurring deposit u/s 80TTA while filing return for current year. Is it correct?
n You have made a wrong claim. This deduction of upto Rs 10,000 is allowed only if you receive interest from bank saving account and not on interest received on fixed and recurring deposits. Therefore, it is necessary for you to file revised returns and pay tax due, if any.
I have a PAN issued by Income Tax Department. My income from all sources is well below the taxable limit of Rs 2,50,000. Am I required to file income tax returns?
n An individual is required to file returns under the provisions of Section 139 of I-T Act, 1961 if the taxable income exceeds basic exemption limit. Since your income is below the taxable limit you need not file tax return even though you are holding PAN. However, it is advisable to keep records of your taxable income to reply in case any communication is received from tax department for non filing of tax return. However, if you expect your income to exceed taxable limits in near future it is advisable to file tax returns for continuity.
Our cashier has misappropriated cash withdrawn from bank for office expenses. Police case is filed. Can we claim this misappropriated amount as deduction from profit?
n Since cash is misappropriated in the course of business, the same can be claimed as deduction from profits under the provisions of section 37 of the Act. This is supported by various high court judgements
I am a Goan girl by birth as also my parents. I am married to a person who is a non-Goan. Our marriage is registered in Goa. We are running a restaurant in Goa. Are we entitled to claim benefit u/s 5A by splitting our income in equal share and claim permissible deduction separately.
n No. As per Article 1107 of Portuguese Civil Code, you will be governed by personal law of male spouse, though you and your parents are Goan citizen governed under Portuguese Civil Code. You will not be able to take benefit of section 5A. You and your husband will be required to file tax returns independently declaring own income.
I have taken loan of Rs 1 crore for construction of my residential bungalow. Are there any conditions required to be fulfilled to claim deduction of interest from taxable income?
— Sharadchandra S Prabhudessai, Borda
n Under Income Tax Act , you are required to complete the house within 5 years from the year of taking loan. The annual deduction for actual interest paid is maximum of Rs 2 lakh.