Computation of income under the head “ Income from house property"

Friends,

Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has issued Circular No. 17/2014 in which the instructions regarding loss on House Property as been given. While taking into account the loss from House Property, the DDO shall ensure that the employee files the declaration referred to above and encloses therewith  a computation of such loss from house property. Following details shall be obtained and kept by the employer in respect of loss claimed under the head ―Income from house property‖ separately for each house property:

• Gross annual rent/value
• Municipal Taxes paid, if any
• Deduction claimed for interest paid, if any 
• Other deductions claimed
• Address of the property
• Amount of loan, if any; and
• Name and address of the lender (loan provider)

Conditions for Claim of Deduction of Interest on Borrowed Capital for Computation of Income From House Property [Section 24(b)]:

Section 24(b) of the Act allows deduction from income from houses property on interest on borrowed capital as under:-

(i) the deduction is allowed only in case of  house property which is owned and is in the occupation  of the employee   for his  own residence.    However, if  it is  actually not occupied by the employee in view of his place of the employment being at other place, his residence in that other place should not be in a building belonging to him.

(ii)       the quantum of deduction allowed as per table below:

Sl No	Purpose of       borrowing capital	Date of borrowing capital	Maximum Deduction allowable
1	Repair  or  renewal  or  reconstruction  of the house	Any time	Rs. 30,000/-
2	Acquisition or construction of the house	Before 01.04.1999	Rs. 30,000/-
3	Acquisition or construction of the house	On or after 01.04.1999	Rs. 1,50,000/- (upto AY 2014-15)
			Rs. 2,00,000/- (w. e. f. AY 2015-16)

In case of Serial No. 3 above

(a) The acquisition  or construction of the house should be completed within 3 years from the end of the FY in which the capital was borrowed. Hence it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.

(b) Further any prior period interest for the FYs upto the FY in which the property was acquired or constructed (as reduced by any part of interest allowed as deduction under any other section of the Act) shall be deducted in equal installments for the FY in question and subsequent four FYs.

(c) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should also show the details of  Principal and Interest of the loan so repaid.

Interest on Housing Loan - Details of Income Tax Act

Friends,

Interest on borrowed capital is allowable as deduction on accrual basis (even if account books are kept on cash basis) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property.

The following aspects concerning claim for deduction of interest are to be kept in view:

The interest is deductible on ‘payable’ basis i.e. on accrual basis. Hence it should be claimed on yearly basis even if no payment has been made during the year.

For claiming interest, it is not necessary that the lender should have a charge on the property for the principal amount or the interest amount. Means mortgage of House is not necessary.

In Shew Kissan Bhatter v. CIT (1973) 89 ITR 61 (SC) the Supreme Court has decided that interest payable for outstanding interest is not deductible.Interest on late deposit (interest on interest )not allowed.

Taxpayer cannot claim deduction for any brokerage or commission paid for arranging loan either as a one time arrangement or on periodical basis till the loan continues. 

In terms of circular No. 28 dated 20th August 1969, if an assessee takes a fresh loan to pay back the earlier loan, the interest on the fresh loan would be deductible. 

Interest on borrowing can be claimed as deduction only by the person who has acquired or constructed the property with borrowed fund. It is not available to the successor to the property (if the successor has not utilized borrowed funds for acquisition, etc). In other words, the relationship of borrower and lender must come into existence before it can be said that any amount or any other money is borrowed for the purpose of construction, acquisition, etc., of house property by one person from another and there must be real transaction of borrowing and lending in order to amount to any borrowing. 

In case of Central Government employees, interest on house building advance taken under the House Building Advance Rules (Ministry of Works and Housing) would be deductible on the basis of accrual of interest which would start running from the date of drawal of advance. The interest that accrues in terms of rule 6 of the House Building Advance Rules is on the balances outstanding on the last day of each month - Circular No. 363, dated June 24, 1983. 

Any interest chargeable under the Act, payable out of India on which tax has not been paid or deducted at source, and in respect of which there is no person in India who may be treated as an agent, is not deductible, by virtue of Section 25, in computing income chargeable under the head “Income from house property”. 

Loan can be taken from any body,unlike section 80C where the specified institutions has been given in section 24(b) no institution has been defined ,means interest payable even to friend /relative etc for House is also deductible under section 24(b)

CIFT Recruitment of Technical and Administrative Posts 2014-15

Friends,

Central Institute Fisheries Technology,  an Indian Council of Agricultural Research, invites applications for the posts as mentioned below vide Advertisement No. CIFT/1/2014. The interested candidates can apply on the prescribed application form which could be downloaded from the official website of CIFT at www.cift.res.in and also from the link provided at the end of this post. No other means/mode of application will be accepted. Mere eligibility will not vest any right on any candidate for being called for written examination/interview. The decision of the Competent Authority in CIFT in all matters will be final. No correspondence will be entertained from the candidates in connection with the process of selection/ test/ interview/ appointment. Canvassing in any form will be treated as disqualification. The final selection of the candidates will be based on initial screening of the applications, followed by a Written Test/ Interview. Incomplete applications or applications without latest Photograph, Signature and attested copies of certificates received after the last date are liable to be rejected. The brief details are as under : 

1. Name of Post : Technical Assistant (Laboratory Technician)

No. of Posts : 04 Posts

Pay Scale : PB-1, 5200-20200 + 2800 Grade Pay

Age Limit : 18-30 Years

2. Name of Post : Technical Assistant (Field/Farm)

No. of Posts :  02 Posts

Pay Scale :  PB-1, 5200-20200 + 2800 Grade Pay

Age Limit : 18-30  Years

3. Name of Post : Technical Assistant (Press & Editorial) Hindi Translator

No. of Posts :  01 Posts

Pay Scale : PB-1, 5200-20200 + 2800 Grade Pay

Age Limit :  18-30 Years

4. Name of Post : Stenographer Gr.III

No. of Posts : 02  Posts

Pay Scale :  PB-1, 5200-20200 + 2400 Grade Pay

Age Limit :   18-27 Years

5. Name of Post : Lower Division Clerk

No. of Posts :  07 Posts

Pay Scale : PB-1, 5200-20200 + 1900 Grade Pay

Age Limit :   18-27 Years

6. Name of Post : Lower Division Clerk (Hindi Typist)

No. of Posts :  01 Post

Pay Scale : PB-1, 5200-20200 + 1900 Grade Pay

Age Limit :   18-27 Years

7. Name of Post : Skipper Grade II

No. of Posts :  04 Posts

Pay Scale : PB-III, 15600-39100 + 5400/- Grade Pay

Age Limit :   18-35 Years

Age Relaxation : Upper age relaxation of 5 years for SC/ST, 3 years for OBC and 10 years for PH candidates. (The maximum age limit for ICAR employees will be relaxable up to 45 years for the post of Lower Division Clerk and 43 years for the post of Stenographer Grade III.) There will be no age limit for the employees of the Council for the above Technical posts.

Educational Qualifications : Please refer to Advertisement for qualification details. 

Application Fees : Application fee of 200/- (Rupees two hundred only) in the form of demand draft drawn in favour of “ICAR Unit – CIFT” payable at Cochin should be enclosed alongwith the application. The application fee paid by way of Indian Postal Orders/Money Orders etc. will not be accepted. Women candidates and candidates belonging to SC/ST category are exempted from payment of application fee. Persons with disabilities are also exempted from payment of fee subject to submission of prescribed medical certificate.

How to Apply : Prescribed application may be down loaded from the Institute website www.cift.res.in The filled application form duly signed and affixed with a recent passport size photograph along with attested copies of certificates in support of claims regarding age, educational qualifications SC/ ST/ OBC/ PH/ Ex-Serviceman etc. should be sent to the Director, Central Institute of Fisheries Technology, Willingdon Island, Matsyapuri P.O., Cochin- 682 029, Kerala within 30 days from the date of publication of this advertisement in the Employment News. The envelope containing application should be superscribed as “APPLICATION FOR THE POST OF ………………….………….at ………..(place), Sl. No……… at the top of envelope. Separate application form and separate fee are required for each post.

For more details Download Advertisement

Download Application Form

Download Scheme of Examination

Computation of Average Income Tax u/s 192 of the Income Tax Act- Tax Deduction at Source from "Salaries"

Friends,

Every person who is responsible for paying any income chargeable under the head "Salaries" shall deduct income-tax on the estimated income of the assessee under the head "Salaries" for the financial year 2012-13. The income-tax is required to be calculated on the basis of the rates given above subject to provisions of section 206AA of the Act and shall be deducted at the time of each payment. No tax will, however, be required to be deducted at source in any case unless the estimated salary income including the value of perquisites, for the financial year exceeds Rs. 2,00,000/- or Rs.2,50,000/- or Rs. 5,00,000/-, as the case may be, depending upon the age of the employee. (Some typical examples of computation of tax are given at Annexure-I).

Payment of Tax on Non-monetary Perquisites by Employer:

An option has been given to the employer to pay the tax on non-monetary perquisites given to an employee. The employer may, at his option, make payment of the tax on such perquisites himself without making any TDS from the salary of the employee. The employer will have to pay such tax at the time when such tax was otherwise deductible i.e. at the time of payment of income chargeable under the head "salaries" to the employee.

Computation of Average Income Tax:

For the purpose of making the payment of tax mentioned in para 3.2 above, tax is to be determined at the average of income-tax computed on the basis of rate in force for the financial year, on the income chargeable under the head "salaries", including the value of perquisites for which tax has been paid by the employer himself.

ILLUSTRATION:

Suppose that the income chargeable under the head "salaries" of an employee below sixty years of age for the year inclusive of all perquisites is Rs. 4,50,000/-, out of which, Rs. 50,000/- is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.

STEPS:

Income Chargeable under the head "Salaries" inclusive of all perquisites	Rs. 4,50,000/-
Tax on Total Salaries(including Cess)	Rs. 25,750/-
Average Rate of Tax [(25,750/4,50,000) × 100]	5.72%
Tax payable on Rs.50,000/= (5.72% of 50,000)	Rs. 2,861/-
Amount required to be deposited each month	Rs. 240 (Rs. 238.4) (=2061/12)

The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee.

Salary From More Than One Employer:

Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head "Salaries" due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer. The present/ chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).

KISHORE VAIGYANIK PROTSAHAN YOJNA LAST DATE

Friends,

Its a very good scholarship offer for the students who are in XIth, XIIth, B.Sc., B.E., B.Tech.,(Ist or IInd Year), MBBS/B.V.Sc./B.Pharma (Ist or IInd Year). 

ELIGIBILITY

Basic Sciences

Stream SA: Students enrolled in the XI Standard (Science Subjects) during the academic year 2011-2012 and have secured a minimum of 80% (70% for SC/ST) marks in aggregate in MATHEMATICS and SCIENCE subjects in the X Standard Board Examination. [Students promoted through both the Summative Assessments-II conducted by the school and conduced by the Board are eligible to apply, if they satisfy eligibility criteria]. 

(If the candidates have obtained a letter grade in the qualified examination, they are requested to convert it into an appropriate % and fill-up the application form)

Stream SX: Students enrolled in Class 12 (+2) of the academic year 2011 - 2012 and aspiring to join undergraduate program in Basic Sciences (B.Sc/B.S./Int. M.Sc) for the session 2012 - 2013 provided they secured a minimum of 80% (70% for SC/ST) marks in aggregate in MATHEMATICS and SCIENCE subjects in the X Standard Board Examination.

Stream SB: Students enrolled in 1st year B. Sc./B.S./Int. M.Sc. during the academic year 2011–2012 and have secured a minimum of 60% (50% for SC/ST) marks in aggregate in SCIENCE subjects in the XII Standard Board Examination.

SELECTION PROCEDURE

Basic Sciences (SA, SX and SB) 

After scrutiny of application forms and based on the performance in the Board Examination(s), all the eligible candidates from Streams SA, SX and SB have to appear for a written aptitude test (conducted both in Hindi and English). The test will be conducted at different centers across the country on 30th October 2011. The details of the venue of the aptitude tests will be put on the KVPY website  in October 2011. Based on the performance in the aptitude test, candidates will be called for the interview which is the final stage of the selection procedure.

The question paper in SA Stream will be multiple choice objective type. In the objective type, 4 choices for the correct answer will be provided and the choice for the correct answer has to be made. 

SP (Basic Sciences) and SP (Medicine)  

KVPY applicant is required to submit the project report, chosen and executed by the candidate exclusively for this application. The projects done jointly with other candidates are not considered for KVPY Fellowship award. Applicant’s creativity and originality should be amply reflected in the project. This project has to be supervised by a teacher/professional in the relevant field. Based on the project submitted and scrutiny of the application form, short listed candidates will be called for an interview, which is the final stage of the selection procedure. The interview will be conducted at IISc, Bangalore during the month of December 2011 or January 2012.

Please Note that applications without the project report will not be considered. The project should not be a routine one (such as measuring a well known property of a material) The supervising teacher / professional is required to provide a recommendation letter certifying the extent of the applicant’s original contribution in the project.

Application Form