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Rediff.com  » Business » Have old car? Claim tax rebate on depreciation

Have old car? Claim tax rebate on depreciation

March 14, 2008 11:54 IST
Finance Minister P Chidambaram has proposed major relief for taxpayers in this year's Budget. You need to plan your investment afresh for the next financial year.

Did you make any investment mistakes 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 possible?

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

afadf asked, Hello Sir,.. I am taking loan from Bank on my Mother name . Can i take income Tax benits or not...plz tell me ..it is very urgent...
Vikas Gandhi answers,  at 2008-03-13 15:51:26Firstly you have not mentioned whether it is a home loan or some other loan. In any case, since the loan is in the name of your mother, you will not be getting any tax benefits.
abhijeetsat asked, Do only Home Loan comes under Tax Exemption? Is there any other loan like Educational Loan taken for Brother's study OR Children's study come under Tax Exemption?
Vikas Gandhi answers, Not only home loan come under Tax Exemption. Education loan do come under Tax Exemption. However such loan should be for Higher Education and the loan should have been taken from any financial or charitable institution. Interest amount paid for such loan gets exemption. However such loan should either have been for yourself, your spouse or child. It cannot be for your brother. Children education expenses are also exempt and this is under the overall cap limit of Rs.1,00,000/-.
manmohansingh asked, vikash, first of all, its my real name...so dont take it otherwise, can you explain section 80d for kming yr. i read that we can save upto 30k.
Vikas Gandhi answers, Your understanding is correct. You can pay mediclaim premium upto Rs.15,000/- for yourself and your family and claim deduction for the same. In addition to this you can pay mediclaim premium for your parents and claim additional deduction upto Rs.15,000/-. this limit will increase to Rs.20,000/- if the parents are senior citizen.
vijay asked, Hi Vikas, I and my wife have a joint home loan. The Interest component comes upto 2.7lac/Pa. My company considered only 50% of it, which 1.35lac for tax exemption. Out of remaining 1.35lac on interset component, she will claim upto 1lac, after that her tax will be NIL. Since i have claimed 1.35L, Can't I make this amount to 1.5L/PA which is the ceiling? To utilise full tax exemption on our loan, we have to claim 62% and 48%. Like this sharing can we do so?
Vikas Gandhi answers, No the share has to be 50%.
Mahi asked, My Father is 65 yrs old. He has deposited some money in a joint account where he is the primary applicant and I am the secondary applicant. Please tell me whether I will have to incur any tax as I am the joint holder. Can he show it as his income only?.
Vikas Gandhi answers, Since your father is the first applicant, any income generated out of this deposit will be considered as his income.
ssd asked, waiting for answer. my question was - an Incometax assessee living in own house and not claiming any hba rebate. is he eligible to take rebate on the house tax paid to the municipal authorities
Vikas Gandhi answers, No. When your yourself are occupting the house, you don't get any such benefit except interest paid on housing loan, if any.
ilango asked, dear vikas as i have three accounts and one is a sb account linked to demat andother one with iob where my salary is credited how should i compound all accounts in my IT RETURNS
Vikas Gandhi answers, You are not required to compound all accounts in your IT Returns. What have to add up is your income, irrespective of which bank you have deposited. You are required to prepare a statement of all the income earned from different sources and show the same in the income tax return.
Ronald asked, Sir , My take home salary is Rs. 6 Lac. My saving LIC + PF is Rs One Lac and Housing Intrest I pay Rs.One Lac 50K. Please let me know what is the Tax implication and on what amount and how much tax I need to Pay.
Vikas Gandhi answers, Based on the facts given, your taxable income works out to Rs.3.5 lacs. On this you are will be paying total tax of Rs.55,620/-. This is on the assumption that your entire take home salary of 6 lac is totally taxable.
umeshpandit asked, Good Evening Sir, I have mentally retarded sister-in-law. No father & mother. All expenses are born by me. Whether eligible for 80dd benefit.
Vikas Gandhi answers, Unfortunately sister-in-law does not fall in the definition of relative, as given by the Income Tax Act. Hence although she is dependant on you, you won't be able to claim any tax benefit u/s 80DD
rajm asked, I HAVE BOUGHT PROPERTY IN MY DAUGTHERS NAME,WHP ARE MINORS AND REGISTERED THE SAME IN THEIR NAME,AND AS I GURDIAN I HAVE SIGNED IT,PAYMENT IS ALSO GONE FROM MY ACCOUNT,PLEASE TELL ME WHAT DOES THE LAW SAYS TO THESE TRANSCTION,I MEAN INCOME TAX AND LAW?AND TAX ISSUES ON THESE,CAN I SAW THESE AS GIFT TO MY DAUGTHER
Vikas Gandhi answers, You can certainly show these properties as having gifted to your daughters. However as said since they are minor, any income that arise on account of either renting it out or on sale, the income will be treated as your income and you will be paying tax on the same. However this will be the case only till they are minor. Once they attain majority, all such income will be their income and they will pay tax.
ravindersinghalang asked, Hi Vikas, What is the starting age for "Senior Citizen", as per Tax laws? I heard it is 65 yrs and 60 yrs.. is it correct?
Vikas Gandhi answers, For the purpose of Income Tax, a person is said to be a Senior Citizen, if he has completed 65 years of age or more as on 31st March of the financial year.
chandu asked, Please a sincere request for advice .I am employed with a proprietory concern. The concern is into development of a software. And till now it hasnt applied for TAN. As the company doesnt have TAN it cannot issue Form 16. I am getting my salary through bank only. Now i want to file my return. How to file my return. please advise. I am working here since last one year.
Vikas Gandhi answers, Since you are not getting Form 16, you will not be able to provide certain information which is required in the ITR form. As aresult of this you might not be able to file your return electronically. In such case I suggest you manually fill up the form and file it physically to the Income Tax Department.
hitesh asked, Hi, My wife have no other Income, H/E she is doing on line share trading from her saving. So, does she need to pay any tax or file I.T. return. When I.Tax reurn has to file, pls advise.
Vikas Gandhi answers, In case of female, the basic exemption limit is Rs.1,45,000/- for the year ending on 31/03/2008. Hence if the income of your wife is below this amount, she is neither required to pay tax nor file returns also.
Varma asked, Vikas, I may get into 10 Lakh+ net salary this year. I understand there is 10% surcharge. My questions are 1) What is meaning of Net taxable income? Are HRA, PF, Insurance deducted in the net taxable income or later? 2) How is surcharge calculated? On complete income or net taxable income? 3) What will be my savings as per new budget when we consider revised tax brackets?
Vikas Gandhi answers, Answers to your various questions are as under - 1) Net taxable income is the final income arrived after deducting all possible exemptions and deductions. This is the amount on which tax is calculated. 2) In case of an Individual, Surcharge is levied @ 10% on the tax, if the net taxable income exceeds Rs.10 lacs. 3) As per the new tax rates proposed, overall savings in respect to Tax will be approx Rs.44,000/-.
rohit asked, I went for Kailash Mansarovar in year 2007. There in Ministry of External Affairs in New Delhi told us that there is the exempition for the amount spent on Kailash Mansarovar Yatra can you please specify under what section is it
Vikas Gandhi answers, As per my knowledge, there is no such provision in the Income Tax Act.
kan asked, I sold property acquired under a will. What is the rate of capital gains tax to be paid with and without indexation?
Vikas Gandhi answers, Since you have sold a property which was received under a will, for calculating capital gains, you will have to consider the cost of property as was incurred by the previous owner of the property. If he purchased the property before 01/04/1981, then market value as on 01/04/1981 will have to be taken into ocnsideration. The date of purchase will be the date when you acquired the property under will.
sada asked, Hello-My Brother is 26 year old, he is a doing articalship & I am paying for his insurance premium can i claim rebate-
Vikas Gandhi answers, NO. you cannot claim incurance premium paid for oyur brother as deduction.
rvbalaji asked, I am hired by a company as an employee for 7 Lakhs per annum and as a consultant for their sister company for 7 Lakhs per annum. I have a car which is nine lakhs and two years old, can i claim depreciation of the car on my consultant tag and for employment use my other reg investments like housing loan, Ins policies,HRA and mediclaim totalling to 30000 worth investments per month?
Vikas Gandhi answers, From the income earned through Consultancy, you can claim depreciation on car.
Vikas Gandhi says, That's all for the day, friends. Good-bye and have a happy week-end.

Chat with Vikas every Thursday at 4 pm

(Due to circumstances beyond our control, date and time of chat may change)