In an hour-long chat on rediff.com on Thursday, tax expert Vikas Gandhi responded to readers' queries on tax and investment. Here is the transcript:
Vikas. Gandhi says, Good evening friends and welcome to Tax chat session.
nairs asked, Hello Sir, I am salaried person - all taxes paid and no refunds expected. Even though I have a home loan, I unknowingly filed my returns in ITR1. In the gross salary column I had entered (salary-home_loan_interest). Would that be a problem? Would I have to necessarily file revised returns in ITR2 again or it would be okay if I didnt?
Vikas. Gandhi answers, at 2007-08-02 15:57:51According to me, you should file a revised return in ITR-2 and show correct particulars of your income.
amit asked, I got some company shares in ESOP 3 years back, but the company got listed (IPO) only about 8 months back. I have sold those shares after listing - 3 months after listing , but 2.5 years after I got those shares. Would i be required to pay tax on the profits I got from selling the shares?
Vikas. Gandhi answers, Since you have held shares for more than 1 year and assuming that you have sold the shares in open market and paid Securities Transasction Tax on the same, the profit will be termed as Long Term Capital Gain and the same will be exempt from tax, on the basis of above assumption.
vijay asked, Hi sir. We ( co-borrower) have purchased a flat by taking home loan in the year 2006, and one of my friend informed, for the year 2007 to 2008 tax rule 26 under section 24B can avail tax benifts upto 1.5 lakh each person. Eg. both 3lakh. is it true? if this such i can inform by accounts dept. pls advise
Vikas. Gandhi answers, If both the co-owners are contributing to the home loan in equal proportion, both the co-owner can individually claim the deduction of Rs.150,000/- u/s 24.
hemant asked, In housing loan if i pay more than EMI during 07-08, whether it will be considered in 80c for Income tax calculation.
Vikas. Gandhi answers, Whatever you pay towards the principal component of the home loan during the year, can be claimed u/s 80C of the Income Tax Act.
ashwani asked, what are the best option for 80 c for me aged 29 yrs. pf & pension fund deductions around 50,000 and ins premium of rs. 15,000. wht about other 35,000
Vikas. Gandhi answers, You can go for investing in ELSS. If you want to play safe then invest the balance in Postal National Savings Certificate or Bank Fixed Deposits.
gaurav asked, mr gandhi I want to know that Can I take the tax rebate on LIC premium pay by me for my mother LIC
Vikas. Gandhi answers, No. You cannnot claim rebate for LIC Premium paid for your mother. YOu can claim either for your self, your spouse and your children.
vishal asked, whether loans take for buying an open plot can be considered for taxes
Vikas. Gandhi answers, Sorry, Loans taken for open plot of land cannot be considered for tax deduction
KALYAN asked, Hello Sir, I am salaried person - I have not filled return for some reason by 31/07/07, can i filled return by now..
Vikas. Gandhi answers, You can certainly file your returns now. It would better be late than never
gaurhari asked, Hello Sir, I want to know that , i am taken a house loan from SBI is that exempted from taxable income. if exempted what portion will be exempted,is it principal amount or interest amout & another quastion is how much amount i will shown in HRA at the time of computation of taxable income without any receipt produce.
Vikas. Gandhi answers, Home loan taken from any bank is available for exemption. YOu can avail exemption both on account of interest as well as principal amount. The upper limit of tax exemption for interest component is Rs.150,000/-, whereas for principal is Rs.100,000/- u/s 80C. As far as HRA ios concerned, to claim exemption you have to produce the rent receipt. Only if you have paid rent, you will get exemption, otherwise not.
Vivek77 asked, I have made a Rs.15000/- FD for two years. Pls. tell me whether the accrued interest on this FD would be treated as income only after 2nd year. What would be my income tax liability
Vikas. Gandhi answers, YOu have both the options available, i.e. You can either show the interest income on maturity of F.D. or at the end of every year. However according to me it would be beneficial to show accrued interest at every year end, as by doing so you will spraed your income over multiple years and hence reduce your tax liability in the year of maturity.
Kannan asked, whether interest on PPF can be included as the investment?
Vikas. Gandhi answers, No. PPF interest is exempt from tax and hence cannot be included in investments for claimimg deduction.
KALYAN asked, Upto what time I can file the return...any fine to be paid..I received Form-16 from company..
Vikas. Gandhi answers, Since oyu have already missed your last date, you can now still file your return till 31st March, 2008. Till this date you won't be liable for any penalty. However in case of unpaid tax, you will be charged with an interest of 1% p.m.
taxadvice asked, Vikas, is there any way to save tax for short term capital gain
Vikas. Gandhi answers, For short term capital gain, there are no tax exemption available,as has been given for long term capital gain.
Rahul asked, Sir i have a question. Actually i am residing in delhi and working in gurgaon. Can i file my ITR in gurgaon or i need to file it in delhi.
Vikas. Gandhi answers, Since your employer is based at Gurgaon, you will need to file your return at Gurgaon.
nauwaq asked, I live in rented accommodation and have no other income other than salary and interest.Do I file ITR-1 or ITR-2?
Vikas. Gandhi answers, File your return in ITR-1
jasi asked, whether sale of house inherited from father who purchased proir to 1981 would be liable for gains tax
Vikas. Gandhi answers, Certainly you will have to pay capital gain tax when you sale such house.
Kannan asked, I used a service provider called TaxYantra to file my tax on my behalf. They have submitted the return to the IT office and brought the acknowledgement to me. But there is no seal of the IT dept. only a 10 digit 2273103827 serial number is present in that. Plz let me know whether that is sufficient.
Vikas. Gandhi answers, Seal of income tax department has to be present on the acknowledgement. In absence of the same, the acknowledgement has no value and you won't be able to substantiate that you have filed your return.
Prek asked, I have filled IT Returns for a rebate of Rs 1300 for the year 2005-2006. I have given the Bank accnt no and MISCR number too..Till now I have not recieved the refund. When do i expect to recieve it?
Vikas. Gandhi answers, In such a case, I'll advise you to contact your Income Tax Officer and get your refund at the earliest.
ramesh asked, My employer did not consider my daughter's tuition fees under Sec 80ccc. But while my return I took this into account and I have to get a refund. Will there be a problem?
Vikas. Gandhi answers, No there won't be any problem. Only thing is, just retain the copies of school fees paid, so that you can present the same to the Officer when and if asked for.
Mukesh asked, What are the tax liabilities for NSC
Vikas. Gandhi answers, Tax liabilities of NSC are as under - 1) You get deduction u/s 80C when you invest in NSC. 2) Interest accrued every year is taxable and has to be included in the income. 3) Since the accrued interest is reinvested 9except for the interest of 6th year), you can also claim deduction for such interest u/d 80C. 4) Amount received on mnaturity is not taxable. (provided interest has been offered for tax every year on accrual basis)
Vaibhav asked, i gave 18000 rs to the time institute (MBA coaching institute)..... can i minus this amount from my total salary on which i pay tax.... i m a salaried person having 25000 per month. please suggest
Vikas. Gandhi answers, No. You cannot claim any expenses against your Salary income.
brij asked, Hi , Am working with an IT co. I have being told that the last day of submitting the returns was July 30, and the last day is already over, I have being told that I can still file the returns by pauing a fine of Rs.5000. Is it so or kindly guide me ...
Vikas. Gandhi answers, Penalty / Fine can be levied only if you file your return after 31st March, 2008. So you have time and without fear of being penalised, file your return at the earliest.
vipin saxena asked, whether interest income from ppf will be ever taxable because i m doing maximum investment in ppf only pl suggest.
Vikas. Gandhi answers, PPF Interest at present is not taxable.
Manoj asked, Can Short Term loss in Equity / Mutual Funds be set-off gainst business income ?
Vikas. Gandhi answers, No., Short Term Capital loss cannot be set-off against business income. It can only be set-off against either Short Term Capital Gain or Long Term Capital Gain.
kiran2 asked, Hello Sir, I am a salaried person.I want to sell my old car. So do I have to pay tax on the selling amount?
Vikas. Gandhi answers, In your case, car will be considered as your personal asset and hence you need not pay any tax on such sale.
sunil asked, i filed my last two income tax returns in chandigarh. my job was in chandigarh. my IT was cut at source there. now i m in mumbai since last month. Do i have to file my return for last year in chandigarh or i can do it in mumbai ???
Vikas. Gandhi answers, Since as on 31st March, 2007, you were working with employer based at Chandigarh, you have to file return at Chandigarh for the last year.
am asked, If someone earns a dividend from a equity fund (eg. Fidelity), is that taxable, and where to show the same in ITR form?
Vikas. Gandhi answers, Dividend income is tax free. However you do have to show the same in your income tax return.
Sams asked, Hi Vikas.. I had invested in some stocks and booked loss. Can I show my loss in my returns to get a refund of the tax already paid
Vikas. Gandhi answers, The loss on investments can only be set-off against the profit on sale of such investments. You cannot set-off such loss agsisnt any other income. If you don't have such Capital Gain, you have to carry foreard such loss to next year for set-off. However if you have yet not filed your return, you have missed this opportunity also. As if you file your returns after sue date, you are not allowed to carry forward your loss incurred during the year.
popat asked, i had filed my return regularly till last year. but i have lost the 2005-2006 return stamped form. how do i get a duplicate or what are my options ???
Vikas. Gandhi answers, You have to contact your Income tax Officer for this matter.
email@example.com asked, mr gandhi I want to know that Can I take the tax rebate on LIC premium pay by me for my wife LIC
Vikas. Gandhi answers, You can certainly claim rebate for insurance premium paid for your wife.
sanjeeb asked, Hi Vikas, I have incurred heavy losses in F&O and margin intraday trading along with some delivery based short term capital gains. Under what category should I declare my tax returns? Pls help..
Vikas. Gandhi answers, Loss incurred in F&O will be treated as Speculation loss and hence you will have to fill ITR-4 for filing your income tax return.
Amit25980 asked, Hello Mr. Gandhi, I bought an apartment 1 year ago for around 22 lakh Rs., I sold the apartment for around 40 lakhs last month and then purchased a new flat for around 38 lakhs. Please let me know what will be the tax implications for me, if any, for the complete transaction. Thanks in anticipation.
Vikas. Gandhi answers, Since you have kept the aprtament for less than 3 years, the profit on such sale will be treated as Short Term Capital Gain and hence you will have to pay on the entire profit (40 lacs - 22 lacs) at normal rates applicable to you. You won't even get benefit for the new flat purchased.
Vikas. Gandhi says, It's time to bid Good-bye and so friends, good-bye and have a good week-end.
Chat with Vikas every week!