Tuesday, February 2, 2021

HOUSE RENT HOW TO CASTLE FOR A CUT

HOUSE RENT HOW TO CASTLE FOR A CUT

02.02.2021

For those who have been eyeing a home for years, 2021 may be a good year to jump in. Home loan rates are down, as are property prices. States such as Maharashtra and Karnataka have also slashed stamp duties. The bonus is that you get tax breaks

TAX BENEFITS ON PRINCIPAL

Equated monthly instalments (EMIs) are typically divided into principal (the amount you took as loan) and interest (the cost of servicing the loan). The principal is allowed as a deduction from your gross total income (subject to an overall cap under section 80-C with other eligible investments of 1.5 lakh).

TAX BENEFITS ON INTEREST PAID

Interest payable on ‘self-occupied’ property is subject to a maximum deduction of 2 lakh under the head ‘Income from house property’. It can be set off against other heads of income, which includes salary income, in the same year.

This reduces your total tax liability. But to claim this, it is essential that the acquisition or construction is completed within 5 years from the end of the financial year in which the loan was taken; else the deduction will be limited to 30,000.

An additional tax deduction of up to 1.5 lakh has been introduced for interest on home loan taken during the period April 1, 2019 to March 31, 2022 for purchase of residential house with stamp duty value up to 45 lakh. However, the individual should not own any other residential property at the time of sanction of loan. If you still haven’t purchased your first home, do so at the earliest.

If you have rented out your property, the difference between the rent you get after adjustment of municipal taxes paid by you, standard deduction and the entire interest on housing loan is your ‘loss from house property’ which you can set off up to 2 lakh against your other income, say salary.

Deduction of interest on housing loan from a selfoccupied house property is not available under new ‘simplified’ personal income tax regime.

Loss under head House Property shall not be allowed to set off from any other head of income and cannot be carried forward under new ‘simplified’ personal income tax regime.

Please note that no notional rent will be added to the taxable income of your second self-occupied house property. Thus, if you don’t find a ready tenant you can keep it self-occupied. Also, do note that this leeway is available only for up to two houses

TAX RELIEF ON DIFFERENCE BETWEEN CIRCLE AND MARKET RATES

The existing rule stipulated that the transaction value of the property purchased should not be less than the circle rate (stamp duty valuation) — but a variation of 10% was acceptable. If the stamp duty valuation rate was higher by 10% of the declared purchase value, then the difference was taxed as income in the hands of the buyer. For example, if you declared a purchase value of 60 lakh but the circle rate was 72 lakh, then, the difference of 12 lakh would be considered as deemed income in your hands and taxed accordingly. Last November, to boost the real estate sector, (under the Atmanirbhar Bharat 3.0 scheme), the variation threshold has been hiked to 20%, but it is only with respect to first time allotment of residential units. This benefit is available for purchase transactions of 2 crore or less from November 12, 2020 up to June 30, 2021.

When courts fall into the patriarchy trap


When courts fall into the patriarchy trap

02.02.2021

A judge’s problematic rulings in some POCSO cases have sparked a controversy but when it comes to sexual crimes, verdicts often reflect chauvinist mindsets

Himanshi Dhawan & Amulya Gopalakrishnan | TNN

Recently, the Nagpur bench of the Bombay high court observed that touching a 12-yearold girl’s breast and attempting to undo her salwar did not count as sexual assault under the POCSO Act because there was no “skin-toskin contact”, but would fall under outraging the modesty of a woman, Section 354 of the Indian Penal Code. The same judge had also said that a 50-year-old man who held a five-yearold girl’s hand and unzipped his pants had not committed sexual assault. Though the Supreme Court stayed the acquittal in the first case after the attorney general warned of a ‘dangerous precedent’, these judgments appalled many people.

But is this judgment really such an outlier when it comes to crimes against women, or is it an extension of the way the courts have looked through men’s eyes?

“Judges are part of the same society as we are and that society is patriarchal. Objectivity is the greatest myth in law and some judges bring their beliefs about ideal family, ideal woman, ideal victim, into the reasoning table,” says Jhuma Sen, professor at Jindal Global Law School and co-founder of the Indian Feminist Judgment Project. And it is not about the judge alone, which in the POCSO cases was a woman, it is an entire ecosystem of practices. “Lawyers make gobsmacking arguments, judges pick it up and validate them through their judgments and so on,” she says.

MAKING THE WOMAN MARRY OR TIE RAKHI TO RAPIST

From a patriarchal point of view, sexual assault is only a raid on a woman’s honour — which explains the judgments that remedy this ‘dishonour’ by yoking rape victims to their rapists. To end her ‘shame’ (imposed by others) and fit into the fold of a family, she must give up on justice.

A few years ago, the Madras High Court suggested mediation between a rape victim and the man accused of raping her, aiming for a solution with “no victor, and no vanquished”, even citing the “happy conclusion” of marriage in a previous instance. Last year, the Madhya Pradesh high court ordered a man accused of molestation to get a rakhi tied by the victim, and “promise to protect her for all times to come”. These orders trivialise the crime committed by one person upon another, the violation of the woman’s bodily integrity and autonomy, and try to enfold it in the logic of traditional family values. Any reconciliation that perpetuates injustice is a sham.

In the last decade or so there have been many gender-friendly judgments and rape jurisprudence has seen a marked change, says author and academic Mrinal Satish. But even when the judgments around rape or sexual assault are in favour of women, patriarchal reasoning has very often been used to justify it, he adds.

DECIDING WHO IS A GOOD WIFE

“It is impossible to miss the big fat footprint of brahmanical household and Hindu family traditions that get the stamp of authenticity in matrimonial law jurisprudence,” says Sen. For instance, not wearing a mangalsutra has been frowned upon. An Andhra Pradesh high court judgment from the 90s observed that the wife removed mangalsutra even though the marriage was subsisting and her husband was alive. “Such an act is not expected from an educated Hindu Brahmin woman” said the court. One clearly gets what the belief system of the bench is, says Sen. Last year, the Gauhati high court granted divorce to a man saying that his wife’s refusal to wear a shakha and sindoor amounted to a refusal to accept the marriage.

And it’s not just the symbols that cause problems. A few years ago, in Narendra v K Meena, it was held that a wife’s effort to separate the (Hindu) husband from his parents constituted an act of cruelty. Last year the Kerala high court drew nourishment from this judgment for a similar order, says Sen. She places part of the responsibility on unwieldy ‘cruelty jurisprudence’ by the courts.

HER BEHAVIOUR IS ON TRIAL

When it comes to sexual assault and rape, “women are constantly put on trial”, says senior advocate Rebecca John. “There is an expectation about how women should behave and there is no such expectation from men,” she says.

The amendment to rape law in 2013 had made it perfectly clear that consent was crucial. It defined consent as an unequivocal voluntary agreement where the woman communicates her willingness by words, gestures or other communication.

And yet the courts often drag in the old mental frames about the victim’s appropriate behaviour. In the Mahmood Farooqui v state case, where the court said “a feeble no” suggested yes, the burden was again placed on the woman’s resistance being ringing enough, her previous attitude to him, and so on. It shifts the focus to what the woman didn’t do, rather than what the man did. “This is disrespectful to the offence and the journey of women who have faced this offence,” says John. “In the legal community centuries of patriarchy have played on your psyche so you don’t even realise what you are doing,” she adds. In 2016 the Supreme Court acquitted three men of gang rape, saying that the victim’s “conduct during the alleged ordeal is unlike a victim of rape and betrays somewhat submissive and consensual disposition”. Her roommate revealed her to be a sex worker; and so, her evidence, it was decided, could not be regarded as “the gospel truth”.

Last year, the Karnataka high court noted the “unbecoming behaviour” of an alleged rape victim who said she had fallen asleep, saying “this is not the way our women react when they are ravished”. “Is there a handbook which tells a victim how to behave after rape,” asks John.

“There is a long history of judgments that either elevate women to a devi or place her behaviour on trial. Both are problematic,” she says.

CONTROVERSIAL JUDGMENTS

Madras HC while ordering the rapist to mediate with the victim:

Even in Islam, Hinduism and Christianity, there are instances of solving the disputes in a nonbelligerent (manner). The result of it is very good because there is no victor, no vanquished.

Delhi HC while acquitting a rape accused:

Instances of a woman’s behaviour are not unknown that a feeble ‘no’ may mean a ‘yes.’

Gauhati HC granting a man divorce:

The wife’s refusal to wear ‘shakha and sindoor’ will project her to be unmarried and/or signify her refusal to accept the marriage with the appellant.

Karnataka HC while granting bail to a rape accused:

The explanation offered by the complainant that after the perpetration of the act she was tired and fell asleep, is unbecoming of an Indian woman; that is not the way our women react when they are ravished.

There is a long history of judgments that either elevate women to a devi or place her behaviour on trial. Both are problematic

— REBECCA JOHN LAWYER

Chennai couple takes the plunge with a dive

Chennai couple takes the plunge with a dive

Kamini.Mathai@timesgroup.com

Chennai:02.02.2021

It wasn’t so much the stars that decided this wedding date, but the changing tides. At the crack of dawn on Monday, when all was well with the ocean, V Chinnadurai and S Swetha tied the knot 60 feet underwater off the coast of Neelankarai in Tamil Nadu.

“It was a traditional marriage ceremony, only it was underwater. We dived in at an auspicious time in the morning and exchanged garlands and tied the thaali before 730am as per instructions from our priest,” said groom Chinnadurai, a software engineer and a licensed scuba diver.

His bride, Swetha, also a software engineer, began her course in scuba diving about a month ago to prepare for her wedding day. “I was nervous and so were my parents, but we had eight divers with us. It was exciting too because we’ve been trying to tie the knot since last week,” she said. “It was all in the hands of the sea.”

Although the couple had practised in wetsuits, both bride and groom chose to dive right in on their big day dressed in traditional attire – Swetha in a koorai sari and Chinnadurai in a veshti, with all loose ends velcroed firmly in place. The ceremony was videographed and the bride and groom emerged to cheering family members waiting on the seashore for the rituals.

“The entire wedding depended on the ocean currents,” said SB Aravind of Temple Adventures, who helped the couple organise their unique wedding.

V Chinnadurai and S Swetha tied the knot 60 feet under water, off the Neelankarai coast on Monday

Erroneous messages trouble health staff


COWIN GLITCHES

Erroneous messages trouble health staff

Nithya.Mandyam@timesgroup.com

02.02.2021

Bengaluru: Over 120 healthcare workers have received messages saying they have been vaccinated against Covid-19 even though most of them had not received the vaccine. In fact, some said they received messages that they had been ‘fully vaccinated’, implying that they had been administered both doses, 28 days apart.

Bruhat Bengaluru Mahanagara Palike (BBMP) officials blamed technical issues with the CoWIN portal for the confusion. Data accessed by TOI shows 121 people have got such messages, but more than 90% of them had not got the first dose. Since the vaccination drive began only on January 16, the second dose for those who received the vaccine on launch day can be administered only later this week.

Jagadeesh K, a Group D worker at a private hospital, said he was worried when he got the message and wondered whether he would get the vaccine at all.

“On January 24, many of my colleagues and I were due to get the jab. But since I was not well, I didn’t go to the hospital. I was resting at home when I got a message saying I had been administered the first dose and the second dose would be given 28 days later. The truth is I didn’t get the first dose,” Jagadeesh said.

An orthopaedic surgeon in a government hospital said he was marked ‘fully vaccinated’ although he wasn’t inoculated even once. “When I got the text, I was worried because I had not got even the first dose,” he said. “I have not been infected, so I thought I might just skip taking the vaccine. But my family was keen on me taking the doses,” he said.

The doctor later approached his hospital officials who promised to take up the issue with the concerned authorities.

Rajendra Cholan, special commissioner (health), BBMP, said: “When the vaccination drive initially began, the portal had two options — partially completed and fully vaccinated. But due to glitches, many times fully vaccinated was clicked, leading to confusion.”

He said the glitches will be fixed soon.“Those who have been marked vaccinated although they have not got the jab need not worry. They will all get the vaccine,” Cholan told TOI.

Army doc loses ₹19.2L while trying to buy iPad at half price

Army doc loses ₹19.2L while trying to buy iPad at half price

Bengaluru:02.02.2021

A doctor with the Army, who tried to buy an Apple iPad at a discounted price, ended up losing Rs 19.2 lakh to fraudsters.

In March, Dr Chethan B, 29, from KHB Colony in Basaveshwaranagar, who was posted in Jammu and Kashmir, logged into Quikr, an online marketplace. The fraudsters he came across through the platform promised to get him an iPad from Dubai for Rs 45,000 which in India would cost around Rs 80,000.

Chethan transferred the money but did not get the product. When he contacted the men, they made him transfer more money saying they had to clear sales tax and other taxes. They also offered to get him five iPods, five watches and two laptops for an attractive price. Chethan ended up transferring Rs 19.2 lakh in two months. But the products did not arrive. On arrival in Bengaluru, he filed a complaint with Magadi Road police. TNN

80C YOUR TAX-SAVING KNIGHT...


80C YOUR TAX-SAVING KNIGHT...

02.02.2021

Those with taxable income at 30% can save 45,000 by claiming 1.5 lakh as deduction under Section 80C and not opting for the new ‘simplified’ personal income tax regime

1  Your Provident Fund (PF) contribution

2 Principal component of your housing loan from prescribed institutions

3 You can invest 500 to 1.5 lakh every year in a Public Provident Fund (PPF) account

4 Tuition fees of two children

5 Life insurance premiums for self, spouse and kids

6 Contribution to Unit-linked Insurance Plan for self, spouse and children

7 Invest in National Savings Certificates (NSC) schemes (through post offices)

8 A 5-year term deposit with a bank under a notified scheme or a post office

9 Investment of up to 1.5 lakh a year in Sukanya Samriddhi Account in the name of your daughter (limited to two children)

...AND SAVINGS BEYOND 80C

If you have not opted for the new ‘simplified’ personal income tax regime and your basic salary is over 1 lakh a month, your 80C limit will be used up by provident fund contributions alone. Want to save more? You can save up to 82,500 a year in taxes over and above the 1.5 lakh limit allowed under 80C if you invest 50,000 in NPS, pay 25,000 for medical insurance and also repay interest of 2 lakh on housing loan for a self-occupied property.

A few more deductions are available:

1 Interest earned on savings bank account with a bank or post office. If you are less than 60, up to 10,000 (even for NRO savings a/c). If you are 60 or more, up to 50,000. Interest from FD also exempt for senior citizen

2 Interest on education loan. No limit, but deduction available for maximum 8 years

3 Disability-related tax benefits 75,000 ( 1,25,000 in case of severe disability) for expenditure towards rehab, treatment or training of self, dependent spouse, child, parent or even sibling. This can either be claimed by the dependent or by the individual on whom he/she is dependent

4 Treatment for certain diseases such as AIDS or malignant cancers for self and dependents up to 40,000 (up to 1,00,000 for patients who are 60 years or more)

5 Donation: 100% or 50% of the amount donated (subject to conditions), depending on the institute/fund to which contribution is made. No deduction is allowed if donation is made in cash over 2,000

6 Deduction of 1.5 lakh on the interest paid on loans taken to purchase electric vehicles from any financial institution

SALARY COMPONENTS: TRADES & TACTICS TO USE

SALARY COMPONENTS: TRADES & TACTICS TO USE

02.02.2021

House rent allowance (HRA)

This is the most common CTC component. Those staying in rented accommodation can avail of an exemption against the HRA received and only the balance will be taxable

THE EXEMPTION IS LIMITED TO THE LOWEST AMONG

1 Rent paid less 10% of salary*

2 50% of salary* if the house is situated in Delhi, Mumbai, Kolkata or Chennai OR 40% of salary in other cities

3 Actual HRA received

*Salary means basic salary and dearness allowance

If your CTC doesn’t contain HRA, deduction for rent paid is available from gross taxable income, subject to various limits (maximum deduction 5,000 per month)

If you live in a house you own, the HRA component is fully taxable

Work from home expenses

If you are working from home fulltime and your employer is reimbursing certain expenses such as telephone, internet, printing and stationery expenses you need not pay tax on these reimbursements. You may need to provide the requisite bills to the employer for claiming these reimbursements, as per the corporate policy.

While computers and laptops provided by employers do not give rise to any taxable perquisite, provision of any other asset say a swivel chair, computer desk or printer, would be taxed as a perquisite as per Rule 3 (7) (vii) in the hands of the employee, at the rate of 10% of the original cost of the asset as reduced by any charges recovered from the employee.

Leave travel concession (LTC)

LTC exemption is allowed on two domestic journeys taken in a block of four years. The new block commenced on January 1, 2018. Restrictions apply. For example, if you are travelling by air, it is limited to economy class airfare for the shortest route to your destination. No exemption is available for hotel and local conveyance expenses.

LEAVE ENCASHMENT: If you haven’t availed of your entitled leave, you may have an option to get it encashed – your employer may permit this only on retirement or resignation. The maximum aggregate exemption available in a lifetime is 3 lakh.

LTC cash voucher scheme

You may have made plans to travel in 2020 (during the four-year block period starting January 1, 2018), but owing to the pandemic found yourself stuck at home. Well, if you have not opted for the simplified personal tax regime, you can avail of the LTC cash voucher scheme that lets you purchase some goods and services.

However, some conditions have to be met:

You need to buy goods or services worth three times the deemed LTC fare between October 12, 2020 and March 31, 2021. If you spend less you don’t get the full exemption. For instance if the deemed LTC fare for a family of four is 80,000, then the employee is required to spend 2.4 lakh. However, if he spends only 75% of this amount ( 1.8 lakh). In this case, only 60,000 (75% of the deemed LTC) will be eligible for tax exemption.

The money must be spent on goods or services attracting GST of 12% or more.

The payment must be made through digital mode and employee must produce the GST invoice.

The tax exemption will be restricted to the deemed LTC fare up to a maximum of 36,000 per person. This exemption is only available for the financial year 2020-21.

Employee Provident Fund (EPF)

PF withdrawal after five or more years in continuous service is tax free. However, interest earned on accumulated balance in PF account post end of employment or retirement is taxable. If employee’s contribution to PF on or after 1 April 2021 exceeds 2.5 lakh in any year, Interest on contribution above 2.5 lakh shall be taxable on withdrawal.

Gratuity

Gratuity received under the Payment of Gratuity Act after completion of 5 years of continuous service is eligible for exemption of up to 20 lakh. But remember the exemption is the cumulative of all gratuity payments received by an individual in his/her lifetime.

கார்த்திகையில் அணைந்த தீபம்!

கார்த்திகையில் அணைந்த தீபம்!  பிறருக்கு சிறு நஷ்டம்கூட ஏற்படக் கூடாது என்று மின் விளக்கை அணைக்கச் சொன்ன பெரியவரின் புதல்வர் சரவணன் என்கிற வி...