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 rediff.com. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome again to the tax chat session.
HYD asked, Hi, I have worked 2 companies last financial year. In first company, I paid TDS upto the date of my relieving. In 2nd company, they didn't cut anything from my payrolls since I didn't cross 1 lakh cap. I did n't file my returns since I recived my last company Form-16 in September. So, what amount I need to pay now? Do I need to pay interest amount to tax? any fine to non filing returns?
Vikas Gandhi answers, at 2007-10-25 15:59:24In your case, to know how much tax you will have to pay, you will have to calculate the same or take help of a Tax Professional or an online return preparation site. If the additional tax to be paid is more than Rs.5000/-, you will have to pay interest otherwise not. Fine for non-filing will be charged only if you file after 31st March 2008.
HYD asked, If I bought some agriculture land and show agricultural profit, are my land amount, crop amount taxable?
Vikas Gandhi answers, Agricultural income is not charged to tax. However such income has to be first added to your normal income and then you get rebate for such income.
sushil asked, I have purchased a house worth 11.50 lacs around 1.5 yr back and wants to sold at Rs. 14.5 lacs .pl. tell any short term gain is applicable if i want to invest in amother house
Vikas Gandhi answers, You will have to pay tax on the short term capital gain. No exemption is available against short term capital gain even if you invest in another house.
TG asked, what is the sodexho food coupons limit in a financial year?
Vikas Gandhi answers, No limits have been fixed for food coupons.
AnujMistry asked, I am yet to file returns for the last financial year. I am a salaried professional, so the tax was deducted at source. Can I still file my returns without any penalty?
Vikas Gandhi answers, You can certainly file your returns as on the date. If there is no additional tax payment, you won't be charged any interest also. As far as penalty is concerned, you will have to pay penalty only if you file your return after 31st March, 2008.
manishcacs asked, Can one claim HRA & Home Loan deductions simulteneosly? If yes then what are conditions to fulfill or if No under which section of Income Tax Act.
Vikas Gandhi answers, In mu opinion a person can claim HRA as well as Home Loan deductions.
prasad asked, Is it exemption seperately for 2 housing loan interest seperately of Rs. 150000/- each
Vikas Gandhi answers, The limit is on overall interest paid on home loan, irrespective of the home loan taken.
Nelson asked, Hi Vikas, As we all know the for Income tax calculation the salary which we draw from Apr - Mar is taken in India. But i come acroas an instance where in few Government Organization for Income tax calculation they take the salary drawn from Mar - Feb. In Form 16 also the period column is Mar - Feb only they have mentioned. Is it legal? May i know which section of IT act allows this. Thanks
Vikas Gandhi answers, In my view Salary for the month of March should also be included. This is because salary is taxed on due or receipt basis. If the Salary was already due in the month of March, then although it is received in the month of April, the salary has to be included in the earlier year.
jose asked, I am a phisycally handicapped person.My anuel salary is inr92000.I hold some NSE shares also.What is the upper limit to which I need to start paying income tax.Do i get any exemption being handicapped.
Vikas Gandhi answers, In case of a physically handicapped person, he gets a threshold deduction of Rs.50000/- from the taxable income. Further if such disability is more than 80%, the limit of Rs.50000/- increase to Rs.75000/-. Thus in your case you will be starting paying tax only when your income exceeds Rs.1,60,000/-.
testms asked, If I sell shares alloted through IPO on the listing date, What would be tax liability? And in case of intra day trading what would be tax liability on profit/loss?
Vikas Gandhi answers, In case of sale of shares on the listing date, the profit will be treated as Short Term Capital Gain. If such shares are sold through Stock Exchange, you will have to pay tax @10% on the profit. In case of intra-deay trading, the profit or loss will be considered as Speculative and hence the same will be taxed at normal rate of tax.
cheenaa asked, can you give some online tax filing sites that is available always (after july)?
Vikas Gandhi answers, www.taxsmile.com,
www.taxspanner.com, www.taxshax.come are some of the sites
sijo asked, Hi vikas, My permenant address is from kerala. Now i am working at mumbai. i want to know that which circle i have to mention on PAN card application form? mumbai or kerala?
Vikas Gandhi answers, Since you are working at Mumbai, it means that your employer is based at Mumbai and hence your returns will be filed in Salary Range. Thus on PAN card application form mention the circle where Salary returns are filed.
cheenaa asked, can you explain how the online tax filing services work? I tried filling up online e-filing forms .It never allowed me to enter the date.It always said 'invalid date'.I finally gave up.So i want to know how the sites work?
Vikas Gandhi answers, Online tax filing service and online return prepration site are two different things. In Online tax filing service you can just fill up the forms and e-file the same. Calculation has to be done by you on oyur own. Whereas in online return preparation site, you have to enter all your income and investment data and it will calcuate your tax liability and also generate income tax return, in the format required for e-filing. This file can then be e-filed thru Income tax Department Site.
nav asked, I had given part money to my wife to buy a property in her name. What are implications?
Vikas Gandhi answers, If you have gifted the money to your wife and with this amount if she buys a property in her name any income received from sich property will be treated as your income and accordingly will be added to your income and accordingly you will be paying tax. However if the amount given to your wife is on account of loan, there will be no tax implications. It is a safer option for you.
joseph asked, is it compulsary that one should file income tax return if the income is below taxable.
Vikas Gandhi answers, In case where the gross income is below the taxable limit, filing of return is optional. However this is advisable only if you have not started filing your returns. In case where you have been filing your return regularly in earlier years, I would advise you to file the return even if the income is below the taxable limit. This will maintain continuity with the department and no query will be raised to you for non-filing of returns.
saurabh asked, Can i file my income tax return even after 31st Oct? Will i have to pay any fine? There is some issue with my Form 16 which needs to be corrected
Vikas Gandhi answers, The Due date of 31st October is for those who have to get their accounts audited under the law. In your case, it seems that you are a Salaried employee and hence due date of filing return in your case was 31st July, which has already passed. Since you are already late, you may be required to pay interest. I would suggets you to file return at the earliest in order to avoid paying interest. In any case file your return before 31st March, 2008, otherwise you will be fined with a penalty of Rs.5000/-
ravi asked, Hi Vikas My brother bought a house and co applicant as me in the housing loan . We both combinly paying paying EMI .And the house is registred on both of us .Shall we both claim tax exemption on the housing.
Vikas Gandhi answers, Yes both of you can claim tax exmeption on the proportionate amount of loan repayment.
saini asked, I have given some money on loan to my wife who in turn has invested the same in GOI bonds. The income of these bonds will be considered her income or will it be clubbed with my income
Vikas Gandhi answers, Since you have given loan to your wife who in turn have purchased GOI bonds, the income of these bonds will be considered as her income and will not be clubbed with your income.
nav asked, in case if it is a plot where there is no income then can IT question about the source? and will it be treated as her income and added to her salaried income?
Vikas Gandhi answers, The Income Tax Department can ask for any source of asset purchased. As far as the source is legal, you should not worry about the same. As regards treatment of income, it can be added only if there is a income. As said if the plot is not earning any income, no income will be added, either in your case or in case of your wife.
nd asked, What is the reaonable limit for Petrol reimbursement,newspaper and periodical for a salaried employee who is getting 15 Lakh per annuam?
Vikas Gandhi answers, There is no limit specified for such reimbursement. Whatever be the amount of reimbursement, the amount of such expenditure you incur should be justified and has to be supported with relevant documents.
Vikas Gandhi says, So friends, its time to wind up and so Good bye and have a nice weekend.
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