Tax queries answered by Dilip Lakhani, Senior Chartered Accountant

I have received the following shares after dissolution of an HUF: HDFC 1,333, HDFC Bank 667, L&T 200. The HUF was formed in 1993 and the shares were received through public issue subscription. In 2015, all the shares were distributed between HUF members. Am I supposed to pay STT? I had also purchased some shares (Premier Auto) from the market before STT was introduced.
TUSHAR B MEHTA
The proposed amendment us 10(38) will be effective from AY 18-19 (FY 17-18). In respect of the shares acquired by you on dissolution of HUF, the date of acquisition will be the date on which the HUF acquired the shares. As the shares were acquired by HUF through public issue subscription, then this may be covered by the exemption which will be notified in future us 10(38).

As regards purchase of shares of Premier Auto, as the shares were acquired prior to 01.10.2004, there will not be any obligation to prove about the payment of STT on purchase of such shares. As regards the shares which are received on partition of HUF as well as sale of shares of Premier Auto, if sold on the floor of the Exchange by paying STT, you will be entitled to claim exemption us 10(38) of I-T Act.

As a freelance consultant for an overseas company, I receive monthly retainer-ship fee by bank transfer from an overseas bank to my bank in India. Will I have to pay Income Tax as per applicable tax rules? While filling tax return, which form should I use? Do I show it as `salary' or `income from other sources'?
VINOD TAWDE
You are a professional providing consultancy to an overseas company. Based on your retainership arrangement, I assume that you are not treated as an employee of the overseas company. If you are a freelance consultant, then the retainership fees will be chargeable to tax under the head, `Profits and gains of business or profession', not under the head, `Income from salary'.

You can file the return of income in ITR-4. You can claim any expenditure incurred by you, which is laid out or expanded wholly and exclusively for the purpose of your profession. If your gross receipt does not exceed Rs 50 lakh and you are carrying on any of the profession specified us 44AA(1) of I-T Act, then you can opt for presumptive taxation scheme us 44ADA and 50% of the gross receipts will be deemed to be the profits and gains of such profession.

(Please send your queries on Tax to et.tax@timesgroup.com.)