The Hindu Business Line : Should I file returns?

I am earning by taking tuitions (for school students) and I have a PAN card. In the last financial year, my tuition income was Rs 1, 37,000. I paid Rs 200 as income-tax and filed my returns. In the current financial year, my tuition income i s Rs 1 lakh only.

I have earned profit of Rs 30,000 from selling shares within one year from the date of purchase. Kindly clarify whether I have to pay any income-tax and whether I have to file IT return?

G. Chitra, Thanjavur

You have paid Rs 24 short towards your last year’s tax liability. The amount you have forgotten to add to your tax liability is the education cess of 2 per cent. For the current year, you don’t have to pay any tax because your total income is going to be below Rs 1,45,000, the tax-free limit for non-senior ladies. You don’t have to file return either, because your gross total income will be below the tax-free limit.

Disqualification of directors

Sub-section 3 of Section 388E of the Companies Act, 1956 provides that the person against whom an order of removal from office is made under this section shall not hold the office of a director or any other office connected with the conduct and management of the affairs of any company during a period of five years from the date of the order of removal.

However, Section 274 of the Companies Act, which deals with the disqualification of directors, is silent about the above. Is it an anomaly or any other interpretation is available?

NRK Marimthu, Namakkal

Since Section 388E bars a person under cloud from appointment to directorships for five years and Section 274 too bars a person convicted and sentenced to imprisonment for not less than six months for appointment as director for a period of five years there is no anomaly. In fact, Section 388E disqualification is implicitly in-built under Section 274.

Effect of forex reserves

What is the effect of increase in forex reserves on the stock market?

Bapi, email

A sizeable part of our forex reserves is constituted by FII money, and FIIs are the movers and shakers of the Indian bourses. Therefore one can establish a positive relationship between the two — FIIs have confidence in India and in Indian stocks.

Allotment of shares

Can additional shares be allotted in a private company ousting the existing shareholders completely?

Parvathy, email

Allotment of additional shares on ‘rights’ basis is applicable to public companies. Therefore, the articles of a company can authorise the directors to make allotment in the manner prescribed therein.

S. MURLIDHARAN

ASK! Send in your queries to ask@thehindu.co.in

http://MentorQA.blogspot.com

More Stories on : Income Tax | For the Asking

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Accounting by infrastructure companies

Some light on spectrum

Joy@work

How can we ensure the trickle-down?

Are you an obnoxious boss?

Culture couture: What’s wrong in partying?

Business analytics

Just Do IT

Number Crunch

Should I file returns?

Will FDI in retail result in lower prices for consumers?

Be honest and forthright

For whom the dog barks