In an hour-long chat on rediff.com, tax expert Vikas Gandhi responded to readers' queries on tax and investment. Here is the transcript:
Vikas. Gandhi says, Good evening friends. Welcome to our Tax chat session
Anirudh asked, Dear Mr Gandhi, what happens if I fail to file my tax return by July 31? What fine will have I to pay, if any? My Form 16 had incorrect PAN so I have given it my employer for changing it, but I have yet to get the corrected Form 16. If I do not get it by July 31 what do I do?
Vikas. Gandhi answers, at 2007-07-19 16:01:31 For late filing of return, following are the consequences -
- In case of additional tax liability, you will have to pay interest @1% p.m
- In case of refund, interest will be calculated from the date you filed your return instead of 1st April
- In case of loss, you will not be allowed to transfer the same to next year.
- You will not be allowed to revise your return in case of mistake in original return.
- And if you don't file even before 31st March, 2008, you will liable for penalty of Rs.5,000.
taxer asked, I have a question. I was deducted TDS from salary by company. Now the company is refusing to give me form 16. How will I file returns? what is last date?
Vikas. Gandhi answers The last date of filing return is 31st July, 2007. If you are not able to get your Form No.16, you cannot wait for the same now. You'll be knowing how much salary was paid to you and also the amount of tax will be know to you. Based on this details, according to me you proceed to file your income tax return. However while filing the return at least mention the Tax Deduction Account No. (TAN) of your employer. Please file your return with this details at the earliest. Since you don't have to attach any documents with the return, you will be able to file return. You can follow -up for your Form No.16 later on.
Vineet asked, 1. My only income is from leasing a car in my name to a company for use of their employees. The other income is from interest. Which form should I file? 2. I have not paid advance tax other than the TDS deducted by the company from the car lease. I have about Rs. 30,000/- as additonal tax to be paid. How do I calculate the interest penalty? And under what section will it be shown 234B or 234C?
Vikas. Gandhi answers, Since you leasing your car and getting rent income, you will have to file ITR-4. For non-payment of advance tax and as you said you still have to pay Rs.30,000/- as tax, both the interest 234B as well as 234C will be levied on you. For calculaiton of interest, other details are required and hence I request you either contact a Tax professional ou visit online tax site which helps you in preparation of return also. (eg : Taxsmile.com)
Arvind asked, What is the formula for calculating long term capital gains in case of sale of flat and what is the current index?
Vikas. Gandhi answers, The formula for calculating long term capital gain on sale of flat is as follows: Sale price (higher of agreement value or sale value as per Stamp Valuation Officer) Less : Expenses related to sale (brokerage, stamp duty etc) Less : Indexed Cost of Acquisiton Inflation index for the current year (2007-2008) -- this has not yet been declared. However, for financial year 2006-2007 the index was 519.
ved asked, I wish to know that whether I can show stamp duty paid to purchase a flat in hyderabad in IT and what is the teax rebate I can get
Vikas. Gandhi answers, You can neither claim any rebate on such stamp duty, nor do you have to show such duty paid in income tax return.
anandrk asked, if I have received an Income Tax refund cheque, why I have not been sent the clearance certificate. Does not refund mean that my return has been accepted?
Vikas. Gandhi answers, In case your return is accepted, without any modification, the return of income filed is itself a clearance certificate. Department will not issue any other document. However if any modification has been carried out, they will issue Intimation u/s 143(1), intimating such changes
user asked, do we need to attach any annexures for ITR-2?
Vikas. Gandhi answers, Not only ITR-2, you are not required to attach any annexures with any of the ITR's except ITR-7.
shree asked, whether profit from derivate is taxable under income from business or capital gain
Vikas. Gandhi answers, In my view, profit from derivatives will fall under Business income and not under Capital Gains
Raj asked, In the past F.Y. 2006-2007, my wife had not informed my PAN to the bank. The bank deducted TDS and issued her TDS certificate without mentioning her PAN on it (as she was late in informing it to them). In F.Y. 2006-2007, her total income (from salary and interest) after taking into consideration deductions under Section 80C doesn't exceed Rs. 1,35,000. Can she get refund of the TDS amount (which is like excess tax paid)?
Vikas. Gandhi answers, For claiming refund of tax, you have to file your income tax return. However since you are not required to attach any annexures with the return and also since the bank has not mentioned PAN, it would be difficult to received such refund. However Department will certainly issue some guidelines in this regards in future. Hence I recommend that you immediatley file the return before the last date.
Shriram asked, In ITR2 where to show deduction towards interest on Home loan for self occupied property.
Vikas. Gandhi answers, Interest on Home Loan for self occupied property should be shown under Schedule HP - (g) Interest payable on borrowed capital
grbbabu asked, Good afternoon Vikas Gandhi. I worked in two different companies and i had two form 16s. But the HRA exemption is not mentioned in one of the form16 (i.e for three months hra from january to march 2007). Can i claim this HRA exemption while filing my tax return now. If so how to mention this in the tax return form ITR-1. Please clarify on this.
Vikas. Gandhi answers, You can certainly claim such HRA exemption in your income tax return. To do this you will have to calculate the additional exmeption amount and show final figures in the income tax return. Keep the working with you for future reference
ani asked, Dear Vikas, I am a salaried person but I have not filed return since last many years but now I am filing the return first time. I have also got the pan card this year only and my income was non-taxable earlier. But I have come under tax slab from last 2 years. Will it effect somewhere in future? Or it is ok. As my previous employers do not have my PAN card details. They have deducted TDS and all everytime but I have never filed return.
Vikas. Gandhi answers, This is a mistake that many employee commit. Deduction of tax does not mean that you do not have to file income tax return. As a citizen of India, it is a responsibility to file income tax return. Not looking at the consequences, according to me you should file income tax return for last 2 years also, since you income was above the exemption limit. And when do not have to pay any additional tax, why should you worry at all.
blr asked, I have income from salary of 220000/- after deducting 20000/- from 80c. I want to know how to calculate my tax if i include agriculture income of 10000/- I am using ITR-1
Vikas. Gandhi answers, To know your tax liability you can visit our site at www.taxsmile.com. This site will also help in preparing your income tax return.
shebby asked, do i have an exemption if i buy a car on loan
Vikas. Gandhi answers, No you do not any exemption for buying a car on loan, except that oyu are having incoem from business / profession and using the car for this purpose.
Raj asked, Corrected question--: In the past F.Y. 2006-2007, my wife had not informed her PAN to the bank. The bank deducted TDS and issued her TDS certificate without mentioning her PAN on it (as she was late in informing it to them). In F.Y. 2006-2007, her total income (from salary and interest) after taking into consideration deductions under Section 80C doesn't exceed Rs. 1,35,000. Can she get refund of the TDS amount (which is like excess tax paid)?
Vikas. Gandhi answers, Mr. Raj, your quesiton is already answered
basanta asked, Please tell us in details about tax payable for next year for a salaried hindu individual.My slab is appx Rs 600000 .00
Vikas. Gandhi answers, On an approximate taxable income of Rs.6,00,000/-, the tax (including cess) will be Rs.1,32,870/- for the current financial year 2007-2008
raja asked, Hi Vikas, I have a question. i have worked in 2 companies in the last financial year. As a result i have 2 form 16 s with me right now. Both shows nill tax. when i tried to file the returns, i was informed that i need to pay tax, can u plz let me know how much tax i need to pay. My 1st form16 shows Rs 98469/- and 2nd form16 shows Rs 86210/-
Vikas. Gandhi answers, Your tax cannot be calculated with this two figures. However since you worked with two employers during the year, each employer gave you the benefit of basic exemption limit of Rs.1,00,000/-. Further while calculating both of them considered the tax slab of 10%, 20% and 30%. On account of this there has been increase in your tax liablity although both Form No.16 shows Nil. You should have informed one of your exmployer about Salary from other employer who would have considered this income and then deducted tax accordingly.
Raghu asked, i have income from house property & Bank interest. I always file my Balancesheet & wealthtax return. now how can i file my balancsheet.because i have to file my return in ITR 2
Vikas. Gandhi answers, You are not required to file balance sheet, for this year alongwith income tax return. Only file ITR-2. Keep the balance sheet for future reference.
d asked, hi, could yo please explain how to fill up schedules CYLA,BLFA and CFL in ITR2. i do not have any other income then Salary and Dividend from Mutual Funds. Thanks and Regards.
Vikas. Gandhi answers, If you are having only Salary and Dividend income, just write Not Applicable in the schedules mentioned in your question.
anjali asked, Hi I have worked in UK last year and have paid taxes there.Do I need to file tax return here in india?I am an indian citizen
Vikas. Gandhi answers, If you have worked for the entire year in UK, your residential status will be Non resident and in such case you are not required to file return in India, if you have not earned any income in India which exceeded the exemption limit.
yashpal asked, Hi Vikash, I have a question. I am a govt. salaried persons and having house loan. Which ITR should I submit?
Vikas. Gandhi answers, You have to use ITR-2 for filing
ashish asked, I bought some shares in 2006 of reliance and reliance communication. When i fill the returns should i also show that i have so much worth of shares. In the last financial year , i had made loss in shares which i informed in my last filling of returns. Can the loss of last financial shares be transferred to next year against any profit if i make.
Vikas. Gandhi answers, You don't have to show the worth of your shares in your return. As regards loss incurred in last year, you can transfer such loss to next year and adjust against profit made in that year. However you will be able to transfer the loss only of you file returns on or before the last date of filing.
sunil asked, i am a salaried person. in form 16 salary head also includes h r a.now what shold i enter in the first column of ITR-1 ie. income chargeble under head salary (i have HRA slip for rebate)
Vikas. Gandhi answers, You have to enter the amount of taxable Salary in the first column of ITR-1.
priya asked, sir, my employer deducted Tds without taking into conisderation of rent paid and others,(lic premium) ,I have to submit again to IT to get back my tax paid?
Vikas. Gandhi answers, You don't have to attach any documents. Just claim the deductions you want to claim and file income tax return.
ami asked, my grandfather wants to transfer his shares to me, do i have to to pay any tax. how can i be safe at this by not paying tax and having shares transfered to my name.
Vikas. Gandhi answers, You don't have to pay any tax on receiving shares from your grandfather
JAGDISHARORA asked, WHAT IS THE LAST DATE OF FILING IT RETURN FOR ASSESSMEN YEAR 2007-08 FOR SALLRIED CLASS
Vikas. Gandhi answers, It's 31st July, 2007
mansi asked, hi...i wasnt in the taxable bracket this year.though my company has has issued form 16 for me. shoyld i file it returns
Vikas. Gandhi answers, If your taxable Salary was below Rs.1,35,000/- you may skip filing the return. However if you were not within the tax bracket, because of deductions claimed, the you will have to file your income tax return.
ami asked, if my employer wants to pay me Rd. 1 lakh as a salaries which is due since 1 year now .. do i have to pay any taxes or i can ask the employer to bear the taxes
Vikas. Gandhi answers, It is your income and you have to pay tax on the same. Someone else cannot bear tax on your behalf.
Vikas. Gandhi says, Thank you friends and it was pleasure answering your questions. Wish i could answer all your queries. Bye.
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