House Property Income: Tax

June 3, 2009

home-logoTax is on the annual value of the house property after allowing certain deductions. House Property consists of any building, flat, shop etc., and the land attached to the building.

Computation of income from Self Occupied property

Income is computed after giving certain deductions from the annual value of the property.

A) Computation of annual value of self occupied property

The annual value of Self occupied property is taken as NIL if the property is fully utilized for own residential stay during the year or if the property is not actually occupied as owner and is also not let out. If a property is let out for only a part of the year, proportionate annual value will be calculated.

B) Entitled deductions for self occupied property

The only entitled deduction is interest, if any payable, on loan taken for the purchase or construction of the house property. The maximum deduction on this account is Rs.30,000/-; However, for properties acquired or constructed between the 1st April 1999 and the 1st April 2003 out of borrowed funds, maximum limit is Rs. 1,50,000/-

Computation of income from let out property

Income is computed after giving certain deductions from the net annual value of the let out property.

A) Computation of net value of let out property

For let out properties the gross annual value will be the greater of the following three amounts:

  • Municipal value of the property;
  • Actual rent received during the year;
  • Fair rent i.e. rent of similar properties in the same or similar locality.

Out of the gross annual value, municipal taxes actually paid during the year has to be deducted to arrive at the net annual value.

B) Entitled deductions for let out property

The deductions available for computing House Property Income are:

  • 30% of the net annual value for repair and maintenance and rent collection expenses for the property
  • Interest on money borrowed to build, buy or repair the property;

Ownership of property

Besides owning property in own name, a person is deemed as owner in following three cases:

  • As transferor of the property to spouse or minor child for inadequate or no consideration;
  • As holder of an impartible estate or a property in part performance of a contract under the Transfer of Property Act;
  • As share holder of a co-operative society or a company, which entitles to hold any property

Source: Income Tax Department of India


Short term capital gains tax: India

June 3, 2009

As per AY 2008-09 Dividends that are distributed attract a tax of 15 per cent.Short term capital gains attract a tax of 10 per cent under Section 111A.

There is merit in equating the rates and hence increased the rate of tax on short term capital gains under Section 111A and Section 115AD to 15 per cent. [ This encourages investors to stay invested for a longer term.]


Short-term Capital gains tax Long-term capital gains tax
Sale transactions of securities which attracts STT:- 10% NIL
Sale transaction of securities not attracting STT:-
Individuals (resident and non-residents) Progressive slab rates 20% with indexation;

10% without indexation (for units/ zero coupon bonds)

Partnerships (resident and non-resident) 30%
Individuals (resident and non-residents) 30%
Overseas financial organisations specified in section 115AB 40% (corporate)
30% (non-corporate)
10%
FIIs 30% 10%
Other Foreign companies 40% 20% with indexation;

10% without indexation (for units/ zero coupon bonds)

Local authority 30%
Co-operative society Progressive slab rates

ISO 14971:2007 webinar / training

June 3, 2009

Newly Revised Risk Management Standard for Medical Products

The US FDA is increasingly stating that many regulated activities should be “risk-based”. Major resource-consuming activities such as product and process / equipment / facility, and software validation, CAPA investigations, vendor audits can all be tailored to a risk based approach.

You will learn here

  • An overview of the new ISO 14971:2007 standard with emphasis on changes from the 2001 version.
  • The Hazard Analysis and its source material.
  • Use of the Appendices.
  • Concept of risk evaluation, control, reduction.
  • Risk management tools — FTA, FMECA.
  • Residual risk.
  • Risk / benefit analysis.
  • The Risk Management Plan, File and Report.

Aerospace – This AS9100 Rev.C training / webinar and more

June 3, 2009

Aerospace – transitioning to AS9100 Rev.C – Effect of Addition of Risk Management requirements

Revision C to the AS9100 standard has been released by SAE International in January.The AS9100 Rev.C changes impacts every company that is currently AS9100 Rev.B Registered or is planning on certification in the near future. This presentation will cover the changes made in Rev.C and how it might impact your organization including the additional requirements associated with Risk Management.

Learn here

  1. In depth review (clause-by-clause) of differences between AS9100 Rev.B and the new Rev.C.
  2. Steps that your organization will need to take to efficiently transition to the new Rev C Standard.
  3. How to interpret Rev C for applicability to your company’s systems and processes.
  4. Why Risk Management adjustments represent such a significant change to the standard.

First woman Speaker of the Lok Sabha Meira Kumar

June 3, 2009

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First woman Speaker of the Lok Sabha Meira Kumar.

Kumar, who is the daughter of late Congress stalwart Jagjivan Ram, won from Sasaram in Bihar. She quit the Indian Foreign Service in 1985 to join politics.