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GST - Credit card holder offered loan - Service rendered by Citi Bank in extending loan is nothing but a service pertaining to the said credit card - Interest component of EMI of loan advanced by bank is not exempted: HCGST -Since the petitioner has prayed for a relief to compel the respondent bank to grant exemption, the writ petition is maintainable: HCCus - Order cancelling Special Warehouse Licence is an appealable order before the Tribunal - Respondent to work out the remedies in accordance with law: HCGST - Printing of content provided by recipient using paper & materials of applicant and supply of such printed leaflets to recipient is a composite supply - Supply of service of printing is principal supply; GST @18%: AARCX - SVLDRS, 2019 - In the SCN, it is not mentioned that the duty demand is jointly and severally payable - A co-noticee is one who is liable for the very same amount along with others: HCGST - Authority has proceeded to pass order for cancellation of registration on new material or facts which neither formed part of SCN nor the same were disclosed to writ applicant - Order set aside: HCGST - TRAN-1 - Rule 117 being directory in nature, the time limit for transitioning of credit would in no manner result in forfeiture of rights even when credit is not availed within the period prescribed: HCGST - Age is just a numberI-T - Amount received in excess of amount standing to credit of partnership firm which is paid towards notional gain on revaluation of land is liable to tax : HCGovt revises tariff value of edible oils & goldI-T - Prosecution of assessee upheld where wilful concealment of correct income by not filing ITR within time stipulated, is clearly established : HCDigital Assets transfer - CBDT notifies Form 26QF for crypto exchangeI-T - Re-assessment - Best of judgment order - Assessee not diligent in pursuing matter, failed to give adequate reply to notices; cannot later allege contravention of natural justice: HCCBDT notifies NFT resulting in transfer of ownership to be excluded for taxation purposeI-T - One opportunity can be granted to assessee as offence is compoundable: HCNiti Aayog & WFP table report on Take Home Ration schemeI-T - Case can be fixed for either limited scrutiny or complete scrutiny and in case it is for complete scrutiny, then no written approval is required by AO from PCIT: ITATConsumer Price Index for Industrial Workers for May 2022 rises by 1.02%I-T - Penalty imposed u/s 271(1)(c) sustained where assessee does not submit any evidence to show that it made voluntary disclosure during assessment proceedings, before detection of bogus loss claimed: ITAT8 Core Industries - Power, Cement, Coal & Fertilisers record high growth in May 2022I-T - Assessee did not write off provisions for doubtful debts due to fear of losing right to civil proceedings for recovery of debts; deduction allowed for provision of doubtful debts: ITATGovt releases calendar for Treasury Bills auctionI-T - Amount received in excess of amount standing to credit of partnership firm which is paid towards notional gain on revaluation of land is liable to tax : ITATGST Tribunal - Challenge is to remove microbes of bias in fleshing it out!Cus - Once in 100% EOU, raw material imported duty free is used in manufacture of final product and same is cleared on payment of duty in DTA, customs duty on raw material cannot be demanded: CESTATGST FileCX - Empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of CCR, 2004: CESTATGovt releases Public Debt Management report for Jan-Mar 2022ST - Relevant date for computing six months periods under Notification No. 41/2007-ST to be taken the date when service tax paid and not first day of month following quarter in which export made, merely on the ground of limitation refund cannot be rejected: CESTATMigration of e-BRC Portal/Website to new IT platformST - Since the typographic error in challan number and corelation of compiled record of appellant is impressed upon by them, request of remanding the matter is hereby accepted: CESTAT
Chapter VIA Compliance for Planned Tax Reduction

JUNE 17, 2022

By CA. Lukose Joseph & CA. Jobby George 

TAX payer looks for proper tax planning so as to reduce his tax liability to minimum. The objectives of tax planning include minimum litigation; increase the income by suitable investment plan, reduction of tax liability, proper growth of economy, maximized retirement income etc. Tax planning sometimes is hundred percent permissive and sometimes based on loopholes or interpretation of law.

Chapter VIA of Income Tax Act, 1961 gives amble opportunity for taxpayer for proper planning so as to meet the above objectives. But if the assessees claiming deductions under this chapter, fails to check/comply to certain conditions attached to each of sections under this chapter, will leave himself in trouble, that is if conditions are not complied, deductions cannot be claimed.

The Chapter VIA deduction has various parts. This article is to put different parts of the chapter in a table format for comparison between each part. There are certain aspects in common and others with differences.

For the benefit of claiming the legitimate deductions given under Chapter VIA, table below gives a bird's eye view.

Chapter VIA
Sections Covered 80A and 80B 80C to 80GGC 80H to 80RRB 80TTA-80TTB 80U
Deduction Dealt with General Payments Income Income Disability of Person
Filing of return and Eligibility Section 80AC Eligible to claim even if return filed after due date Not eligible to claim unless return is filed by due date Eligible to claim even if return filed after due dates Eligible to claim even if return filed after due date
Maximum Amount of Deduction Amount paid subject to limits specified in that section. Income derived in the sections limited to Gross total income Lower of Deduction permissible or Gross Total Income Rs.75,000/- or Rs.1,25,000/- depending on extent of disability subject to gross total income
Specific Conditions Deduction under section 80DD requires certificate from prescribed medical authority and deduction under 80G for donations can be claimed if recipient has approval from tax authorities . Audit report in prescribed form depending on section under which deduction claimed and to be filed before the due date prescribed under Section 44AB. 80TTB can be claimed by Senior citizens only Certificate from Medical Authority in proof of the disability
Other requirements
Payments to be made before the close of the previous year or within the extended time if any.80C not available against capital gain. Inter division transfer to be at Market value for the purpose of claiming deduction s under this part Deduction under section 80TTA is limited to Rs.10,000/- and that under section 80TTB is up to Rs. 50,000/- Deduction subject to disability
Deduction based on enhanced profit on disallowance If the eligible income increased due to any disallowance or exemption , deductions are permissible on enhanced amount -circular-47/2016
If gross total Income is Nil No deduction under Chapter VIA
No double deduction If any deduction under the sections of this chapter ,no further deduction admissible under the Income tax under any other section
Members eligibility Members of association or body cannot claim deduction in respect of the amount for which deduction already claimed by association or body.
Subsidy If any subsidy is received, the same is considered as income for the computation of deductions under this chapter.
Company assesses opting tax as per Section 115BAA/115BAB Deduction under section 80JJA on new employment and 80M on Inter Corporate dividend only permitted
If section 115 BAC is opted (new tax regime) Deduction under section 80JJA on new employment generation and 80CCD(2) on investment in national pension scheme only permitted
Claim even if Gross total is nil It is advisable to disclose the eligible deductions under this chapter in the return even if loss to safeguard the situation that in scrutiny any loss is converted to income.
Set off of losses All the losses which are eligible to set off are to be set off and then the deduction under this chapter is calculated from resulting Gross Total Income
Carry forward of losses The deduction under this chapter is restricted to gross total Income which is arrived at after setting off carry forward losses .

[The views expressed are strictly personal.]

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