Effects of Section 40 (B) of Indian I.T.Act

Today, I am here on my Blog with a special Post which perhaps may not concern to most of my Readers who are not involved in business. Actually, this Article was written for my community members of Accounting and Taxation on PeerPower, an Exclusive web site of Times Group for Professionals only; but, being the same to be extensive to the limit of number of certain words, I thought to publish it here. Our family businesses fall under various categories of firms such as Proprietary, Partnership, Private Company as well as Professional. We are not purely dependent on our Tax Consultants and therefore we take keen interest in Taxation and its planning limited to our own concerns for fair discussion with them prior to finalize the documents of taxation.   

To make my Article precise, I’ll discuss only the provision of   Remuneration to Partner/s under Section 40 (B). Up to Ass. Year 1992-93, the Partnership Firms (Both Business and Professional) were levied Firm Tax; and over and above, the Partners also had to pay Individual Personal Tax on share of profit earned from the firm. Thereafter, as per provision of Financial Act 1992, the Partnership firms have to pay tax on total income at the flat rate of 35% and later on from Ass. Year 2006-07at the rate of 30% with applicable Surcharge as well as Education Cess. The Partners have to mention their share of profit as Non-Taxable Firm Profit in their Income and Expense A/c and such income is tax exempted u/s 10 (2-A).

As per above Financial Act of 1992, some notable provisions were made in Clause 40 (B) and accordingly the working partner/s are allowed to have Firm Management Remuneration. Following Table indicates what amount the working partner can have based on Book Profit of the firm. Remuneration to partners can be paid only to working partner/s authorized by the partnership deed. It should not pertain to period prior to partnership deed and must not exceed the limits prescribed.

 

My Broken Heart! – A Gujarati Poem (ભગ્ન હૃદય!)

My Gujarati Readers,

As you know – my some Articles (Stories and Poetry) in Gujarati, but preamble in English, have been published on my blog previously. For your convenience, I have re-arranged my categories on right side bar. You may click ‘Gujarati’ or ‘pdf Attachment’ to reach those Articles.

Here is an emotional poem. The poet is internally unhappy and this very truth is known to somebody darling only. In the eyes of the people, the poet is materialistically the happiest man; but, but …..

Please proceed on.

ભગ્ન હૃદય!

અમારા આ જીવનવનને નંદનવન સહુ લેખે,
કિંતુ અમ અંતરે છાયા એ રણને તું જ પિછાણે.

અમારી આ જીવનસરિતાને નિહાળે કલકલ વહેતી સૌ,
કિંતુ કકળાટ અમ દિલનો તું વિણ કોણ એ જાણે ?

ભર્યાભાદર્યા આ ઘરમાં, ટહુકતાં સ્વજનો વચ્ચે,
અમારી એકલતાને બૂઝનારી દૃષ્ટિ તું જ પાસે.

અમારા હાસ્યની છોળો દીસે ઊઠતી ચોતરફ સૌને,
ઘૂંટાતા કારમા દિલના રૂદનને એક તું જાણે.

જીવન વિષે તો ભાગ્યશાળી સૌને હું ભાસું,
જીવન ભવ્ય છે કે ભાર,એ તો તું જ તો જાણે.

ભૌતિક સુખસુવિધાઓ તો ખડકાયે જતી મુજ પર,
પારાશીશી એ સુખની ગણાયે કે ન તું જાણે.

ઊઝરડાએલા આ દિલને શાતા મળે ક્યાંથી,
એ તો હું જ જાણું, પણ પાસ તવ વ્યર્થ એ આશા.

(તા.૦૩-૦૮-૧૯૮૪)
- વલીભાઈ મુસા

 

A Grave Note on Shoe-missiles! – ‘Seldom’ such Posts (2)

Click here to read in Gujarati
Records of ancient civilizations indicate many references to shoes. Plenty of evidences are there to prove how and why our primitive ancestors had started using modern shoe-like optional means such as wrapping larger and thicker leaves and skins of dead animals to bottom of their feet and also using wooden sandals for protection from pointed stones, thorns, mud and burning sands while roaming in search of food and shelter.

Utility of shoes has recently progressed excessively and its use as a weapon (missile) and sign of protest has started! An Iraqi journalist named Muntazer al-Zaidi hurled his shoes all of a sudden at US President Mr. George W. Bush during a Joint Press Conference with Iraqi Prime Minister Mr. Nouri al-Maliki at Baghdad on December 08, 2008 and subsequently on February 03, 2009 a protester(whose name could not be traced out) also hurled abuse and then a shoe at China’s Premier Mr. Wen Jiabao at Cambridge University (U.K.).

Above two episodes excited the people of the world with controversial feelings of both fun and disliking. Most of them have enjoyed much with their bias towards victimized fellows and their foreign policies. But a very few have condemned the events on disciplinary arguments that a guest should not be insulted with such a rude behavior.

My attempt here is to analyze and discuss some root causes of both the unfair happenings in a condensed way. Before I proceed on, I would like to quote below the utterances of both so-called heroes while hurling shoes to their targets just to understand how and why they re-acted so in public.