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Not filed tax return? No fine if you do it by Oct 31

September 28, 2007 08:46 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 their 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 replied to readers' queries in an hour-long chat on Here is the transcript:

Vikas Gandhi says, 
Good evening friends. It's thursday - 4.00 p.m and time for tax chat. So let's start...

Jyotiprakash asked, I have an taxable income of 4.2 Lakh p.a. and my wife is having an income of 1.2 lakh p.a..I and my wife are the joint owner of a land property on which we want to constuct a house thru housing loan. Which option will benefit us most in tax saving? Can you clarify for the case whether the loan should be taken in my name only or the loan should be taken jointly me and my wife? If the loan is taken in my name , then whether my wife can claim the tax benefit since she is the joint owner of the land?How the tax benefit can be claimed , whether according to the loan payment ot according to the ownership of the property?
Vikas Gandhi answers,  at 2007-09-27 16:00:26According to me you should take the home loan in your name. This is because your wife's income is already below the taxable limit and hence she won't be benefiting any further tax exemption thru home loan. It is you who requires tax planning and hence it is advisable for you alone to claim the tax benefits of home loan.
hari asked, If I opt for home loan for house under construction what are tax benefits available?
Vikas Gandhi answers, If you take a home loan for house under construction, you will be able to claim deduction for the principal amount of loan paid during the year under sec 80C. the total limit of deduction that you can claim under sec 80C is Rs.1,00,000/-. As regards interest on housing loan, you will have to accumulate such interest till such time the property is constructed. Subsequently you will be able to claim 1/5th of such amount every year till 5 years as deduction under sec 24.
ganapathy asked, Hi, I had bought a Home using Personal Loan as I wasn't given the Home loan because of the property is out of City. Will I be entitled to avail the IT exemption for the interest and principle i am paying for the PL? Thanks,
Vikas Gandhi answers, Since the loan taken is personal loan, you won't be able to get any tax benefit, although you have used the loan for the purpose of buying a house.
Vikram asked, Hi Vikas. Please explain the best way to minimize the tax. My annual income is around 3.6 lakhs.
Vikas Gandhi answers, I assume that the annual income of Rs.3.6 lakhs is from salary. If this is the case, you can ask your employer to include Transport Allowances, Medical reimbursements, Hosue rent allowance (only if you are staying in rented house) Leave travel allowance to form part of your Salary. This will reduce your taxable salary. In addiiton to this you can invest upto Rs.1 lakh either in Life Insurance Premium, PPF, NSC, Fixed deposit with bank and claim further further reduction in your taxable income.
ramkr asked, Hi I am an employee in an MNC with 5 LPA. At present I have given my investment details about 1.2 lakhs to my office. Stilll my Income tax is about Rs4000/- per month. Please advise me to save more on my tax// Thanks
Vikas Gandhi answers, Since you have already opted for investing upto Rs.1.2 lacs, the limit of section 80C gets exhausted. The only thing you can do to save tax, is to restructure the variable component of salary in such a way that it gets exempted. this may be done by including reimbursement of expenses like telephone, motor car expenses etc. as part of your Salary.
bharath asked, Hi Vikas few months back i have taken Home loan from ICICI Bank. I have taken tax certificate from them. On that coapplicant name has been given by my wife's name. Now our accounts people are telling that i can claim only 50% as remaining 50% goes to my wife. Any wife is a house wife...If i speak with the ICICI people they are mum about this...What need to be done....Please advice . Thanks
Vikas Gandhi answers, Since you are repaying the entire loan amount from your account, according to me 100% tax benefit will be available to you only. You need to explain that your wife is just a co-applicant and she is not financing the loan and that she is not having any income also. Her name is added from security point of view. Your bank statement would speak about this fact that you are bearing the entire loan
Solanki asked, I am having 4yrs daughter with 40% disability. I got certificate of disability one month before.can i files revised return to get 80DD deduction.? date of issue of certificate have any problem ?
Vikas Gandhi answers, I don't think the date of issue of certificate should create any problem. You can file a revised return. You may possibly have to explain the Officer, when called for, that you were not aware of such provision and hence didn't get the certificate earlier and hence you are now revising the return on getting the certificate. just try it out.
rajinder asked, Hi Vikas, I am doing job as well as partner in one firm. Now the return filing date is 31 July as salaried person and my remuneration (profits/gains etc.) from my partnership firm will be informed to me in October, after firm auditing. I have refund on Form 16 as salaried person but will have to pay the tax on the income from firm. So what will be my tax return filing date? Will I be charged penalty / interest if I submit my return October? Please advice.
Vikas Gandhi answers, I assume that your remuneration from the partnership is based on the profits determined and not fixed. In such a case you will be treated as owrking partner of the firm. Since the accounts of the partnership firm are subject to tax audit and since you are a working partner in such firm, the due date of filing return in your case is 31st October and not 31st
July. So relax, you have not yet missed your bus. File your return before 31st October and not interest for late filing will be charged to you. However you may have to pay interest for non-payment of advance tax, if any.
Anuj asked, Hi, I am Anuj, with about 4.0 L annual CTC. I am 40% disable how can I get exemption in Tax against this disability.
Vikas Gandhi answers, For a person with disability the Income tax law has given a flat deduction of Rs.50,000/- under sec. 80U, from the income. However you will need to attach a medical certificate to this effect.
nishant asked, Hi Sir.. i am a student.i just applied for a credit card.I dont hav PAN Card.Will i have to income tax?
Vikas Gandhi answers, If you are not earning anything you will not require to pay any income tax or file any tax return. However the expenses incurred thru credit card will have to be reflected by the person who is making the payment of credit card.
nishant asked, Hi Sir.. i am a student.i just applied for a credit card.I dont hav PAN Card.Will i have to income tax?
Vikas Gandhi answers, If you are not earning anything you will not require to pay any income tax or file any tax return. However the expenses incurred thru credit card will have to be reflected by the person who is making the payment of credit card.
ashish asked, Dear vikas My annual salary is 218000 and I have a agricultural income of 525000 per year . besides this I am paying a rent of 120000 per year .. I also have some other expenses like fuel bills of 40000 per year and close to 75000 as donations per year. and I have never invested in any insurance or mutual funds. could you tell me my tax liability. thanks a lot!! ashish
Vikas Gandhi answers, Tax calculations are not so simple that can be calculated at chat itself. You are requested to either consult a tax professional or visit any online tax return preparation site ( is one among them) and know your tax liability. However with the amount given in the query you will have to file your income tax return also.
Vikas Gandhi answers, If your wife is not having any income, she need not file her tax returns.
akk asked, good evening to you thanks for you are our help how do we calculate IT on profit or loss on sale/purchase of shares?
Vikas Gandhi answers, Profit on sale of shares are divided into Short Term Profit and Long Term Profit based on the period of holding the shares. The calculaiton is too long to explain thru this chat session. If you actually want to calculate such profit, you can visit the site at, wherein a free calculator for determining capital gains is given You can use this calculator and know what is your gain / loss and its taxability. YOu will be able to find such calculators on other online site also.
vabz asked, Hi, I haven't filled the Tax return yet, so what is the last date of filling the tax return without penalty. Besides, I am working at Pune and filled last return there at Pune, Can I fill this year tax return in some other city like Lucknow.
Vikas Gandhi answers, Filing your return for the year ended on 31/03/2007 by 31/03/2008, will not attract any penalty. However you will have to pay interest on tax payment, if any. As regards filing your return, you have to file your return where your employer is situated.
nk asked, If I do not pay advance tax and decide to pay self assesment tax at the time of filling the returns, will that be a problem? I know I need to pay the interest.
Vikas Gandhi answers, Knowing that you will have to pay interest at tthe time of paying S.A.Tax, there are no other consequences.
pshorey asked, Dear Mr. Gandhi -i am an nri and would like to give my wife an amount of rs. 400000 what would be tax implications for me or my wife-P. SHorey
Vikas Gandhi answers, Any income that arises to your wife on investing the amount of Rs.4,00,000/- will be treated as your income for the purpose of Income Tax and you will be liable to pay tax on the same.
bnashok asked, While filing my returns for financial year 2006-07, I filed it in ITR-4, in that while entering in different schedules I've written correctly, but while writing in total income I made a mistake by writing income of Rs.120000 from house property instead of writing it in income from profession. What I should do now, should I submit another return or just leave it as it is?
Vikas Gandhi answers, In such a case the column for 'Profits and Gains from Business/Profession' would have gone blank. Without going in for further details the Officer might think that you have filled a wrong ITR and may disqualify the return. It would be better according to me to file arevised return and rectify the anomaly.
Neeta asked, I and my husband stay together in rented flat. Both have HRA in our CTC. CAn we claim the rent paid to landlord in equal proportions under HRA?
Vikas Gandhi answers, For claiming exemption of HRA, you need to actually pay the rent and produce the rent receipt. This will mean that both of you will have to pay proportionate rent from your bak account and get separate receipt for the same. This is possible only if your landlord agrees for such arrangement.
amit asked, Hi Vikas, if i take a home loan of 3 lakh for a house which costs me 5 lakhs, will i be getting any tax exemption on 2 lakh which i hv paid from my own sources?
Vikas Gandhi answers, No. you will be able to get tax benefit only in respect of home loan taken
Vikas Gandhi says, It's 5.00 p.m and time to say good-bye. So friends, see your next week same day same time. Bye.

Chat with Vikas every week!