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Rediff.com  » Business » Here's help to finalise your tax saving plan

Here's help to finalise your tax saving plan

February 06, 2009 11:56 IST
Were you prudent with your investments last year? Did they help you save tax? Or did you end up paying more than you could afford?

What investment mistakes did you make last year? Are there ways to rectify them? What investment options should you go for this year?

What should you do to bring your tax liability to the minimum level?

Direct tax expert Vikas M Gandhi offered some valuable tips on tax saving during a chat on Thursday. Here is the transcript:

Vikas Gandhi says, Good evening friends and welcome back to the tax chat session

pravya asked, How much money i can take from my parents & and reliatives as a gift within a year (without Tax).
Vikas Gandhi answers,  at 2009-02-05 15:56:36There is no specific limit of taking gift from your parents. However as far as relative is concerned, ceryain specific relatives are defined form whom you can take any amount of gift. From other relative (not defined) you cannot take a gift totalling to more than Rs.50,000/-.
winnie asked, Last year, my income tax amount of Rs.25,000/- was deducted. Can I fill up a form this year applying for a refund, showing rent receipts (HRA)??
Vikas Gandhi answers, If you HRA exemption has not been given by your employer, you can claim the same while filing income tax return. To know whether the final calculation results into tax payment or refund, you need to work out the exact calculation. You will ceryainly get the refund, if you are entitled for, once you file your income tax return.
malla asked, If my mother is not a tax assess can i claim the home loan in my IT returns?
Vikas Gandhi answers, If your mother is the owner of the property, you will not be able to claim any tax benefit on account of home loan.
pravya asked, Last year i have applied for refund. till now i have not got. whom & how to approach.
Vikas Gandhi answers, To get your refund, you will have to visit your Income Tax Officer along with a copy of your income tax return and request to issue the refund at the earliest. In case there is still a delay, you can contact Income Tax Ombudsman, who will help you to get your refund.
SaK asked, Vikas, I have been asking this question for the last 3 times you cam on rediff..If possible, please answer it - I had given out my flat for rent for 6 months in this financial year. After that,i got it vacated and it is presently lying idle. I have a housing loan running on that house. How do I calculate my tax benefit (Total interest - 6 month rent ) or (6 months interest - 6 months of rent + 150000/2). Please respond.
Vikas Gandhi answers, Since your intention was to rent your property for entire year, you will be able to claim entire interest payment made during the year, against the rent received.
shiv asked, hi, i am a salaried employee and i have incurred huge losses in shares this year. will i get some relief on account of this in my taxes either now or in future ?
Vikas Gandhi answers, Loss incurred on sale of shares cannot be adjusted against any other income of the year and hence you won't be getting any relief in current year. However this loss can be carried forward to subsequent 8 years and adjust against the profit on sale of shares in any of these years.
prasad asked, sir, if i buy a house in the nmae of my wife, by taking home loan, will i be eligible to claim deduction
Vikas Gandhi answers, If you buy the house in your wife's name, your wife will become the owner and hence you willl not get any tax benefit on account of home loan, since you are not the owner of the property.
pravya asked, My wife recieved Rs.1,50,000 from her parents and that money i have taken as a loan from my wife and purchased land in my name. I am paying her Rs.5000 every month. My wife or I liable to pay tax. to avoid what i have to do
Vikas Gandhi answers, What you are paying to your wife is on account of repayment of loan taken from her and hence neither you nor your wife will have to pay any tax on account of this transaction.
ramki asked, Hi Vikas, I'm a corporate employee. Apart from 1 lakh tax savings, can we also save tax on HRA for the year?THanks,Ramki.
Vikas Gandhi answers, Yes, if you are staying in a rented house, you can claim benefit on account of HRA, apart from 1 lakh tax saving investments.
VIJAY asked, IS THERE ANY LIMIT TO CONTRIBUTE UNDER SECTION 80G
Vikas Gandhi answers, There is no specific limit mentioned in the Income Tax law. However we go thorugh the formula for claiming deduction, your donation should not be more than 10% of your total income.
Pbansal asked, Sir, Kindly explain the taxability of gifts received in cash as well as in kind.
Vikas Gandhi answers, Gifts received in cash from a person other than a relative is taxable if the same exceeds Rs.50,000/-. However if such gift is received on the occassion of marriage or through will or inheritance, the same is exempt from tax irrespective of the amount. There is no tax on gift received in kind.
000314960 asked, To avoid TDS on Fixed Deposits what do we need to Inform Bank some affidavit or something.
Vikas Gandhi answers, If your interest is above Rs.10,000/-, bank will deduct tax on the interest on fixed deposit. However you can apply to the bank for not deducting tax by submitting Form No.15G. This form can be filled only if your total income of the year including the interest is within the exemption limit.
brahmaji asked, hI SIR, i'm physically handicaped person,percentage perment disability is 70 to 75 %,please can you tell me how much exempt i will get
Vikas Gandhi answers, You will be able to claim flat deduction of Rs.50,000/- from your total income under section 80U of the Income Tax Act.
chandra asked, sir, my spouse and i have a joint home loan. and have a joint sb ac from there we pay the home loan emi. so for tax saving how does the principal and interest component is divided
Vikas Gandhi answers, Assuming that the property is also in the joint name, the division of home loan repayment will depend on the ratio of the home loan.
ravid asked, i have taken 5 yrs tax saving Fixed Deposit from a nationalized bank worth 50000 and i will be getting 76000 after 5 yrs, how much i can claim as taxable income from this?
Vikas Gandhi answers, Your taxable income will be the amount of interest earned on fixed deposit. It is advisable that you offer the interest income on annual basis for tax purpose, to avoid heavy tax outgo in the year of maturity of fixed deposit.
Tejas asked, How the interest accrued under NSC gives tax benefit? Does it under add under "Source from Other Income" head also?
Vikas Gandhi answers, NSC Interest has to be offered every year on accrual basis under Income from Other sources. Since this interest is reinvested, you also get tax benefit of this interest u/s 80C.
Ajju asked, I have invested in Post office and the same will be matured in april, the amount which i receive is taxable or i have to show in my IT returns.
Vikas Gandhi answers, The Interest amount that you receive on maturity of Post Office Deposit is taxable.
Dillip asked, I am salaried employee.I missed to fill my income tax return last year.But i am aware that TDS is being cut from the salary. Is it mandatory to fill income tax return every year.
Vikas Gandhi answers, Irrespective of whether tax is deducted or not, once your income is above the exemption limit, you are duty bound to file an income tax return. You have time till 31st March to file your return. Better late than never.
Kiranj asked, Should I required to declared the Interest rate of FD and PPF in tax return
Vikas Gandhi answers, A person is required to declare his earnings in the Income Tax Return and not the interest rate.
sunil asked, Hello Sir, Can i adjust long term capital gain on land with long term loss on shares
Vikas Gandhi answers, You can adjust long term loss against long term capital gain. The source from where such loss or gain is derived is immaterial. However in your question since there is long term loss on sale, since the profit on sale is exempt (assuming that STT is paid on sale), loss also will be exempt and hence in such case you won't be able to adjust the gain against the loss.
Vikas Gandhi says, That's the end of the session friends. Chat with you next week. Good-bye.