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Monthly Archives: August 2015


Upfront lease premium is charged on one time basis but on the other hand annual or monthly lease charges are charged on regular basis. Thus, the premium is the price paid for obtaining the lease of an immovable property. While rent, on the other hand, is the payment made for use and occupation of the immovable property leased.


Renting of immovable property is a taxable service as a declared service. The term of the same has been defined in clause (44) of the new section 65B inserted by the Finance Act, 2012 and already applicable from 1.7.2012 and means –any activity for consideration carried out by a person for another

person which is included in services declared by CBEC.

As per clause (a) of section 66E of Finance Act, 1994, declared services includes rent of immovable property.

Frequently Ask Questions – Agricultural income

Question 1. Does interest on arrears of rent qualify as agricultural income and will this be exempt from tax?

Answer:- If, a tenant pay arrears rent or revenue payments (either in cash or kind) and the landlord charges interest on such arrears, the income of land lord would be deemed income by way of interest and would, hence, be chargeable to tax.

Tax treatment and Taxability of Agricultural Income

Agricultural income in India is exempt under Section 10(1) of the I.T.Act, 1961. So the income earned by way of agricultural operations, as mentioned in Section 2(1A) of the said Act, is not taxable as Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State . However while computing tax liability on non-agricultural income, agricultural income is also taken into consideration only for tax caluculation purpose.

Practicing Chartered Accountant be a Karta of HUF or not ?

There is no specific qualification is required to act as Karta of a HUF. So a CA can also act as KARTA of a HUF under Hindu Law.However, he is subject to restriction as per respective enactment governing our right of practice. The ICAI through its 190A regulation allows members to engage in any act without taking permission from the council. However to act as Karta of HUF, the special permission is required to act as Karta.

Self Assessment To Selfish Scrutiny – Service Tax

With effect from 1st August 2015 Department is coming out with a strong ‘return scrutiny system. It is going to be a two part system of Preliminary and Detailed Scrutiny.CBEC has issued Circular No.185/4/2015 – Service Tax dated 30th June 2015 providing instructions on detailed manual scrutiny of Service tax returns. These instructions for Service Tax will be applicable from 1st August 2015 onwards.

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