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 back to the tax chat session.
harilal asked, Dear Mr. Gandhi, Can i use any other section for tax saving after exhausting my 1 lakh under 80c, if i do not have a home loan or medical premiums. also i would not make any donations. i can go for any other investment option as such which gives returns and saves tax.
Vikas Gandhi answers, at 2007-08-09 15:59:20Sorry, but after exhausting the deduciton u/s 80-C and given the reservation that you won't be paying any medical premium or giving any donations, you are left with no other options for claiming any deduction under any other section. There are no other investment options left for claiming tax benefit
vijh asked, As on date, my son is minor (17 and half years. I have invested in FD in his name. On maturity, he will be major. How the interest gain will be evaluated for taxation - whether in his income or to be clubbed in parent's
Vikas Gandhi answers, SInce on 31st March, 2008, your son will attain an age of 18 years, he will be major as per Income Tax law, and hence all the income will be taxed in his hands and will not be clubbed in your hands.
Sumit asked, Vikas, Is there a provision to claim tax benefits on stamp duty and registration amount paid for a house if the house is occupied in the same financial year as the registration was done?
Vikas Gandhi answers, You can claim such benefit u/s 80C of the Income Tax Act.
amiyasahu asked, what are the capital gain tax rates
Vikas Gandhi answers, The different Capital Gain tax rates are as under - a) Short Term Capital Gain (on which STT is paid) ---- 10% b) Other Short Term Capital Gains ---- At normal rate of tax c) Long Term Capital Gain (on which STT is paid) ---- no tax d) Long Term Capital Gain (on shares & Securities) ---- 10% or 20% e) Other Long Term Capital Gain ---- 20%
maanu asked, sir, if i give 10000 as donation what will be the % saving for tax purpose.. what is the max limit ?
Vikas Gandhi answers, Your answer depends on where you have donated the amount. For claiming tax benefit first the institution where you have donated should have given you a certificate stating that the amount donated is eligible for claiming deduction u/s 80G of the Income Tax Act. If such certificate or declaration is not given, you will not be able to claim tax benefit. Assuming that such declaration is given, deduction for amount donated is given either on 100% or 50% of the amount donated depending on the institution where the amount is donated. In certain cases, the deduction is also restricted to 10% of your total income (as per Income Tax law.
deepakm asked, I have not filed my 05-06 return but have filed 06-07 return. Is there any problem with it.
Vikas Gandhi answers, This depends whether you have filed your returns for 04-05. If you have filed for earlier years, then of course department will find a gap for one year and approach you for filing return. In such a situation you will have to face consequences if any. However if this is the first time you are filing your return you may ignore filing return for 05-06. However according to me if you were liable to file return for 05-06, you should file the same, before the Officer detects such non-filing.
paidi75 asked, Hi vikas,I have lost Rs50000 in F&0 shares.Can i show this amount as a lost in income tax return?Is it possible?
Vikas Gandhi answers, Dealing in F&O shares is considered as Specualtive transaction and hence the loss incurred will be treated as Speculation loss. You should show this loss in your income tax return. However you will not be allowed to set-off such loss against any other income. YOu can only carry forward such loss to subsequent year and claim set-off against Speculation Profit only.
todd asked, Are mutual funds better option than PPF/NSC?
Vikas Gandhi answers, If you have the capability of handling the risk attached with mutual funds, of course mutual fund are better option than PPF / NSC. However if you want to play safe then PPF / NSC are better option. It's your decision.
mukesh asked, There is no tax on long term capital gains so far as I know ( viz. more than 1 year of locking).But, what I heard is that there are some capital bonds that can be used to avoid taxes on short term capital gains//Please tell me how could I buy these capital gain bonds.
Vikas Gandhi answers, Only those long term capital gains are exempt on which you have paid STT while selling. Other long term capital gains are taxable. Further against short term capital gains there are no exemption available yet. There are no such bonds, on purchase of which you can claim exemption from short term capital gain.
mjk asked, I am salaried employee. My employer deducts TDS from salary. Apart from salary, I have interest income & short term capital gain from time to time .Whether IT for these is required to be paid as advance tax??If yes, when & how??
Vikas Gandhi answers, If your net tax liability aftyer deducting TDS on Salary and on other income is more than Rs.5,000/-, you do need to pay advance tax. The dates for advance tax for non-corporates fall on following dates - a) 15th September ----- 30% b) 15th December ----- 30% c) 15th March ----- 40% For paying such tax you need to fill ITNS-280 and deposit the same to any bank accepting tax payments, alongwith cash / cheque
ravimittal asked, Dear Sir, Can i take house loan on purchase of land and claim the tax exemption? Please answer
Vikas Gandhi answers, At the outset, no finance company or bank will give home loan for purchase of open plot of land. Even if you manage to get such loan, you will not be able to claim any tax benefit under Income tax. Such tax benefit is available only for residential property and not for land.
RAMBABU asked, I received a notice from Income Tax department that they had some doubts relating to the returns filed for 2005-06. What documents should I take to the IT office?
Vikas Gandhi answers, According to me, you first visit the officer on the appointed date and ask as to what details are required and then submit/produce such details. On the first date you may not take any documents.
manu asked, Hi Mr. Gandhi, I want to know whether HRA exemption is based on monthly calulation or it's calculated annually & taxable amount is deducted per month.
Vikas Gandhi answers, The HRA exemption calculation is done on annual basis.
jay asked, Dear Sir, Can I cliam Persoanl Loan interest part for income tax
Vikas Gandhi answers, No. Interest paid on personal loan does not qualify for any deduction under Income Tax law.
Praveen asked, Dear Mr.Vikas, I'm Praveen from chennai working for an IT company. my company was owned by OWNER1 from April 2006-July 31 2006. Then OWNER2 acquired it from August 1 2006. So should i submit TWO FORM 16? I have only my current employer's FORM 16. what should i do? can i file my return with just this one?
Vikas Gandhi answers, If Owner2 has included the salary from Owner1, in Form No.16 you can go ahead with filing return with Form No.16 you have. Otherwise you will have to consider saalry from owner1 also while filing return. In any case, since you are not required to submit any documents alongwith the return, you can just go ahead and file a correct tax return
stock asked, IF I INVEST IN IT STOCKS, CAN I CLAIM EXEMPTION UNDER SEC 80C ?
Vikas Gandhi answers, Investment in stocks does not qualify for any tax deduction.
Kanth asked, for some mostake done by my employer my all tax saving proofs have not been included for the IT and as a result I had paid more tax.IS there anyway to get that money
Vikas Gandhi answers, File your returns claiming all such deductions. This will result in refund, which you will get at a later date. Remember, you can get back excess tax paid, only on filing returns.
RAJESHCJAIN asked, Sir, Is there any set-off rule whereby I can set off the losses of my business in my salary income ??
Vikas Gandhi answers, Income Tax law, strictly prohibits set-off of business loss against Salary income. Such loss can be set-off against other income but not against Salary.
MANIVANNAN asked, iF I GET HIGHER EDUCATION LOAN IT WILL GET BOOKED IN 80E , WHAT IS THE MAX LIMIT
Vikas Gandhi answers, The entire interest amount paid during the year for such loan will be allowed as deduction from your total income u/s 80E. However such loan should be from financial institution or any approved charitable institution. Loan taken for higher education from any other organisation or person will not qualify for claiming deduciton u/s 80E.
VIJIII asked, IF I PUT 5 LAKHS IN MY SON NAME, WHETHER THE INTEREST ON THAT INCOME WILL BE CHARGED FROM ME. THANKS.
Vikas Gandhi answers, If your son is below the age of 18 years, then entire interest income will be taxed in either of the parents, whose income is higher.
sundar asked, I got the deduction for the Housing loan principle & interest ? and now i am paying property tax for the same house, it is possible to get deduction for the property tax.
Vikas Gandhi answers, You cannot claim property tax as deductgion under Income tax law.
Vikas Gandhi says, Its time to say good-bye and so friends have a good week-end.
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