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 and welcome back to taxchat session.
kant asked, what is the tax liability of HUF
Vikas. Gandhi answers, at 2007-07-12 15:58:16The tax liability of HUF is same as that of Individual. That is to say - Upto Rs. 1 lac Nil From Rs.100001 to 150000 10% From 150001 to 250000 20% Above Rs.250000 30% This will be further increased by surcharge (in certain conditions) and Education cess. This rates are for financial year ended 31/03/2007
kant asked, how much rebate is permitted to HUF
Vikas. Gandhi answers, For HUF also the rebate / deduction limits are same as that for Individuals.
Shashi asked, Hi Vikas, If I take home loan to construct a home on the land that my dad owns, can I get tax benefit?
Vikas. Gandhi answers, Yes, provided the home that you construct is in your name and not of your fathers.
Zeeshan asked, Is there going to be an extension on the last day of filing returns, or is it 31 july.
Vikas. Gandhi answers, Till date it is 31st July and there are no news for extension. Please don't wait for such news and file as soon as possible to avoid last minute rush
kirhan asked, hi, last FY i paid more tax in advance while file retun it is returnable about Rs 10K. but so far i have not received my cheque. It is already one year completed, can you sugest on this?
Vikas. Gandhi answers, In such a case you either have to write a letter to your Income Tax Officer or visit personally alongwith the copy of the return filed and claim your refund.
partha asked, Good afternoon Mr. Vikas, My taxable salary is Rs.2.0Lacs PA (after standrad dedcutions, HRA, Medical etc.,), i want to know how much tax i ahve to pay.
Vikas. Gandhi answers, On a taxable income of Rs.2.00 lac you will have to pay a tax of Rs.15,300/- (plus interest, if any)
Sonu asked, Hi, if a housewife invest money in stocks (her separate a/c) but the money invested is from her husband income, then how is the income tax computed?
Vikas. Gandhi answers, If husband is giving the amount as loan to his wife, any income arising from the investment will be income of wife and she will have to file her income tax return. However if the amount is given as gift, the income from such investment will have to be included in the income tax return of husband
suresh asked, My company not included salary of my previous company in form16.what should I do?
Vikas. Gandhi answers, While filing income tax return, show the salary income from both the employers and then calculate tax and finalise your income tax return. You can use www.taxsmile.com for preparing such returns.
sagar_1957 asked, Good afternoon Sir, I am applying ITR-1 by this week end. What enclosures r to be attached with the same. Kindly advise. Regards/Dayasagar sagar_1957@
rediffmail.comVikas. Gandhi answers, You do not have to enclose any documents with the income tax return. Just File ITR-1 to the income tax department.
SMRUTIRANJAN asked, My taxable salary is Rs.1.1Lacs PA (after standrad dedcutions, HRA,) i want to know how much tax i ahve to pay.
Vikas. Gandhi answers, If this Salary is realting to the current financial year, you will not have any tax on this income.
hari_hurry asked, Hi, Is it mandatory for an NRI to file the returns? If so how they can file the returns?
Vikas. Gandhi answers, For NRI, if Indian income exceeds Rs.1.00 lac then they have to file income tax return. The Government has opened the facility of electronic filing of returns and NRI can take benefit of this scheme.
pardeep asked, SIr, My income from Salary is 2 lakhs per year and also gain from equities (trdaing) is 20,000 (STT paid is Rs 1011). what should i do, can i fill itr-1 or else and how i can caluclate the tax for last year. regards pardeep_hans@
rediffmail.comVikas. Gandhi answers, Since your income also includes Capital Gains, you will have to file ITR-2 and not ITR-1. For prepapring / calculating your tax liability you can use www.taxsmile.com which will assist you in this matter
prem asked, need help on form ITR-2. Part B - T1 (item 2) in the form says income from house property is nil if it is a loss. However I believe losses on HP can be added to salaries. So is it a mistake on the form?
Vikas. Gandhi answers, This is not a mistake. In case of loss of cuurent year, you have to mention the total amount in item 6 of Part B - T1. Further in case of loss from house property you need to show this amount in Schedule CYLA (2) and then show as to against which income this loss is been set-off
VINAYK asked, I am a saleried person having home loan,which ITR should I fill?
Vikas. Gandhi answers, A salaried person having home loan has to file ITR-2
Amit asked, hi Vikas, I'va a typical question regarding day trading? I've been told that day trading on a stock market (settlement without a delivery) is considered a speculative income. My understanding is that speculative income such as gambling & winning from horse racing etc. are being taxed at 30% straight. In this case what if I've income or Rs. 90,000/- from day trading only (considering that I do not have any income) do I need to pay any taxes?
Vikas. Gandhi answers, Day trading is
considered as Speculative transaction. However this is not taxed @30%. It is included in your other income and taxed at normal rates. However if your income is only 90,000/-. then you will not have to pay any tax
macmib asked, Hi Vikas,Will there be the same date for paying the tax ie 31st July ? or it will extend
Vikas. Gandhi answers, Yes till date, it is 31st july and there are no news for extension. Please don't wait for the same and file as early as possible
ksjairaj asked, I have my house rent paid by my employer. The rent paid is already included in my salary component as perks. Have I got to pay income tax for it at 20 % as it is done for my income slab? OR is it lower than that OR can I claim rebate for the perk? if so at what %
Vikas. Gandhi answers, Since this amount is already included in your perks, your employer should have already deducted tax on the same and hence you will not be liable to pay any more tax. However refer your Form No.16 and see if any tax is yet payable.
babu_nacka1978 asked, My Income per month is Rs 35000 as a consultancy fees. Previosly i paid for 2 years tax returns Last year i missed to file 2005-2006 returns. I want to file last year as well for this year. Please guide me what are the procedures and penalty for the same
Vikas. Gandhi answers, For filing return for 2005-2006 you might have to pay a penalty of Rs.5000/-, if the officer demands so. However better be late than never and file the return as soon as poossible. Because if the Department detects that you have not filed your return, besides penalty you may also be liable for prosecution.
macmib asked, I am on retainership in pvt company and every month there is a TDS deducted from my fees.How can I recover this TDS amount ? Also would like to clarify,what is current TDS deduction and with effect from when?
Vikas. Gandhi answers, To know whether you will be able to recover this TDs amount or not, you will have to prepare your income tax return and know your tax liability. if the tax calculated exceeds TDS amount, then you might have to pay additional tax and if viceversa, there will be a refund. Currently TDS on professional fees is deducted @10.30% and this rate is applicable from 1.6.2007
a asked, what is the tax percent for capital gains?
Vikas. Gandhi answers, Capital Gains are taxed as follows - Short Term Capital gain (on which STT is paid) @ 10% Other Short Term Capital Gain - @ normal rates Long Term Capital Gain (on which STT is paid ) exempt Other Long Term Capital Gains - either @10% or 20%
Jasbir asked, Can I file my IT return this year in Post Office as I did last year
Vikas. Gandhi answers, Yes you can file your IT Return at post-office this year also.
ravikant_kukreti asked, I have salary as well as business income and its refund case, which itr sould i fill & what is the last date of filing
Vikas. Gandhi answers, You will have to file ITR-4 and the last date of filing is 31st July, 2007. However if your accounts are to be audited, last date of filing will be 31st October
hellovicky asked, are there any changes from the way tax was filed in 2006 versus NOW. do we need to know anything which is very important for 2007
Vikas. Gandhi answers, For 2007, following changes are made - a) Instead of Saral, you have ITR-1, ITR-2 and so on -- these are new return forms. b) Further filing is made annexure-less, i.e. with Income Tax Return you don't have to attach any other documents, not even TDS certificates. c) E-filing is also possible
Shankar asked, Sir, My wife is housewife and is not employed. I have put her name as Second Holder in investments made in Mutual Funds. As you now Mutal Funds wants everybody to intimate PAN No to them. If not having PAN, one should apply for it and produce it for verification and a copy for their records. My wife is not having PAN. I will have to apply for PAN for my wife. I would like to know whether she needs to file her income tax return just because she is holding PAN Card?
Vikas. Gandhi answers, If she is not having any taxable income, she need not file her income tax return, although she is holding a PAN
Jalandra asked, Sir, Good Afternoon. I am going to get a share from the property of my parents. Is it taxable? If yes, then how can I save the tax?
Vikas. Gandhi answers, No, this will be basically a gift to you and hence you need not pay any tax on this share of property
Jagdeep asked, Dear Mr. Vikas, Good Afternoon. I am using your web site for filing taxes. Under Tax credit - Tax Deducted Collected at Sources Column, which figure should I fill in the field -- amount to be allowed as credit during the year? Is it the gross income received as rent from my tenant or the total TDS deducted at source by him. Can you please reply. Thanks.
Vikas. Gandhi answers, You have to enter total amount of TDS deducted and not income received from your tenant
spal asked, AS being salaried which form for ITR i should fill its ITR -1 ver2(2page) or ITR -1 ver3(3page), these i download from the income tax department website? And one more question Should my all short term capitla gain will be caloubed (joint) with income from salary as already paid 10% short term capital gain on that..
Vikas. Gandhi answers, Both the versions of ITR-1 are similar except the Font size and hence you can use any of the forms. However if you are having Short Term Capital gain, you have to fill ITR-2 and show it separately under the Schedule of Capital Gains
Vikas. Gandhi says, That's all for the day, friends. We'll meet next week.
Chat with Vikas every week!
