Were you prudent with your investments last year? Did they help you save tax? Or did you end up paying more than you could afford?
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?
In an hour-long chat on rediff.com. direct tax expert Vikas M Gandhi answered to many such readers' queries. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome to the tax chat session.
siva asked, sir i am salarised person and my wife having lic policy paid by me in my wifename in this the maminee name is my father in law can i show this recipt to my income tax reduction
Vikas Gandhi answers, at 2008-02-07 15:57:07You can claim deduction for premium paid by you for your wife and even your children. This is irrespective of the nominee listed in the policy.
gopi asked, sir, hello, i am lic agent, kindly let me know what is the last date of filing form 16 for year 2006-2007
Vikas Gandhi answers, At the outset, you have to file ITR and not for Form 16. Further as stated you are LIC agent and hence you will be receving commission and not salary. Hence you should have got Form No.16A & not Form No.16. As far as last of filing is concerned, it was 31st July, 2007 in your case. However you can still file return till 31/03/2008, without inviting any penalty from department. Of course some interest might have to be paid.
vinod asked, sir, i am salarised person. my son doing CA his tution fee paid by me whether tution fee rebatable under Income tax rule.
Vikas Gandhi answers, Yes you can claim deduction u/s 80C for such tuition fees paid for your son.
rajesh asked, sir, is interest on saving bank account is taxble or not.
Vikas Gandhi answers, Yes, interest on savings bank is fully taxable.
snehasish asked, hi im snehasish, i am working as a manager in pvt. ltd. company and side by sode i am completing my MBA from symbiosis pune, so can i get a tax benifit for the fees paid for my higher studies and i have also taken a loan of rs.100,000 from my company and i pay it in easy istallments every month, is there any way to get tax benifits
Vikas Gandhi answers, In my view you cannot get any benefit u/s 80C for fees paid for your own studies. this deduciton is available only when tuition fees is paid for your children. Secondly as regards loan also you won't be getting any tax benefit. Had you taken loan from any financial or charitable institution, you would have been able to claim deduction on account of interest payment u/s 80E.
Abhinandan asked, hello sir, i have demat account thru which i buy/sell shares, after tds i get money, now do i need to show this income or transcations in ITR form. if yes then how and do i need to pay any further tax.
Vikas Gandhi answers, Yiur question is surprising. There is no provison in the Act which says that tax has to be deducted on sale of shares. No TDS is deducted when you sale your shares. the tax which is deducted is known as Securities Transaction Tax and this is not the same as TDS. Hence oyu have to show such sale in your income tax return. If you have kept the shares for more than 1 year and then sold off, the entire capital gain will be exempt otherwise the sale will be treated as Short Term and hence you will be taxed @10% on the profit earned.
neelam asked, HI This is neelam , i got married last year and also shifted to a new job , th enew job i had joined is by my after marriage name , pl advice if i can file the tax using the same pancard with my before marriage name on it .
Vikas Gandhi answers, You can still file your income tax return, but I would advise you to apply for change in PAN data and get the new PAN card. Of course there will be no change in your PAN number.
Vidya asked, Hi Vikas, my name is Vidya. I returned to India in Feb 07 and now i need to file tax returns as i have lost the NRI status. Please suggest me any exemptions that can be had being ordinary resident. What all documents would be required for filing returns. Please advise.
Vikas Gandhi answers, Main deduction available to any individual tax payer is under sec.80C. You can claim this deduciton by investing in PFF, NSC, Insuarnec premium, Bank fixed deposit, ULIP, ELSS. Evebn principal repayment of housing loan is covered in this section. The eupper limit forn deduction in this section is Rs.1,00,000/-. Besides this there are other deduction which you can know by visiting any tax related site. As far as documents are concerned. you are now not required to submit any documents alongwith the income tax return.
GKArora asked, 1. My major/independent son proposes to gift Rs1,00,000/- to my wife (his mother). Is this gift taxable? Can this amount of gift be kept seggregated from my income? 2. Can I make tax-free gifts to my major/independent son and/or his spouse? Will income from such gift be kept seggrgated from my/my son's income? 3. Can I make tax-free gifts to my minor grand sons. Will earnings from such gifts be added to my/my son's income.
Vikas Gandhi answers, 1. A son can gift any amount of money to this mother and there will be no tax implication. 2. As a father you can gift any amount to your major son and in such case also there will be no tax implication. But be cautious while gifting money to your daughter-in-law. Any income that she receives from such gift will be treated as your income and you will have to pay tax on the same. 3. Of course you can gift to your grandsons. However whatever income is generated in minor's hand will have to be clubbed in either of the parents of the child.
Anish asked, Sir, I have one house where I am staying and the Hsg loan is paidup. Now I am buying a flat, in same city , which I will let out . Can I get exemption in interest of Hsg loan and principle amount paid ? Thanks, Anish
Vikas Gandhi answers, Yes you can claim exemption on account of interest and principal amount repaid on loan taken for new house that you intend to give on rent.
Cherian asked, I am an NRI who has flat in india which I constructed with a housing loan, when I was working in india. As i am now abroad, I have given this flat on rent. The rent from the flat and my savings in India go towards repayment of the loan. What will be my tax liability in relation to this flat. The only savings I have in India is the amount I have in my SB account and the amount in the EPF account which I have not withdrawn till date.
Vikas Gandhi answers, As oyu have not mentioned the figures, it is difficult to comment on your question. However base don the facts it seems that your taxable income will be NIL and hence there won;t be any need to file the return.
roy asked, Hello Sir, I have a house in Kerala which I purchased on bank loan. My parents stay there. But I work and stay in Bangalore. Can I claim tax deduction for the interest paid on the loan.
Vikas Gandhi answers, Since you are owning the house and also repaying the loan, you are eligible to claim deduction for the interest paid.
Thomas asked, I am an NRI. If i take a PAN, am i bound to file income tax returns, while i dont have any domestic income. The only income i have in india is the interest on the NRE FDs
Vikas Gandhi answers, You are required to file return only if the total income exceeds Rs.1,10,000/-.
BPRA1970 asked, For a speculator how to show the losses while filing the return and is it adjustbale against the income for that year?
Vikas Gandhi answers, Against specualtion loss, only speculaiton income can be adjusted. You can carry forward such loss for four assessment years and during these years, you can adjust only against speculation income.
david asked, As an employer, we have taken the declaration form from the employees, is this required to take the photocopies of the receipts which they have shown in their declaration form?
Vikas Gandhi answers, As a proof of investment having made, you have to take such copies from your employee.
oliver asked, Vikas, I havent filed the tax return for 2006-07 year but have paid the tax. Can i file return now? if yes then how?
Vikas Gandhi answers, Yes you can file the return now. the procedure for filing the return is same, there is no change.
viraj asked, 1 LAcs investment includes all section eg. 80C, 80D, 80 G etc
Vikas Gandhi answers, The limti of Rs.1 lac is appplicable in total to section 80C, 80CCC & 80CCD. Deduction under sec 80D & 80G is in addition to deduction available in sec 80C
ANAND asked, Hi Mr Vikas, All are enthusiastic to know whether we can file nil returns ie after adjusting all the deduction claimed and investments made. Pl clarify. becoz last year IT Dept had not recd my return as I had not paid any TDS and my total taxable income was below the taxable limit. Thanx and Regards, A. Ananda Rao.
Vikas Gandhi answers, If before adjusting all the deductions, your income is above the taxable limit i.e Rs.1,10,000/-, you are required to file your income tax returns, although it might be resulting in NIL after adjusting the deductions.
prasad asked, hi sir, I am an associate, I was late to send my documents to my HR for tax, now its showing i need to pay approx 6,000/- as tax, wch will be deducted in march. Is there any way i can get this money back showing the documents to any concerned dept.
Vikas Gandhi answers, What you now have to do is claim such deduction while preparing your income tax return. As a result of this the calculation will result in refund which will then be granted to you by the Income Tax Department, upon filing the Income tax return.
ANAND asked, Hi vikas, I am receving salary of Rs 20kpm I am getting Rs 1250/-pm month as medical allownace included in my pay slip. Can I claim medical allownce as non taxable salary kindly clarify. Thanx and Regards, A. Ananda Rao.
Vikas Gandhi answers, To claim such reimbursements, you need to produce medical bills to your employer and only then you can claim the same as non-taxable salary.
john asked, can i avail tax benifit underhome loan ..loan has taken by my wife and she is availing the benifit ..
Vikas Gandhi answers, Since your wife has taken loan, you cannot claim any tax benefit.
RajeshG asked, This year I ended up paying more than my 1 month take home salary as tax, but one of my friend who is in the same scale paid less that half of what I paid. He said most of his package is offered as allowance and he submits a bill to claim those allowances which does not reflect in the CTC. Is this possible?
Vikas Gandhi answers, Yes this is possible. There are several allowances which are exmept, if proof is expenditure is presented to the employer. You can contacr your HR and get such allowances included in your CTC.
shaan asked, Dear Sir, my married sister has gifted me an insurance policy (premium paid by her). My question is can she claim tax benifit on the premium paid?
Vikas Gandhi answers, No neither you nor your sister would be able to claim deduction for such insurance premium paid.
NMT asked, I have not filed my tax returns for 2004-05, now i need to submit form for visa how can i do the same
Vikas Gandhi answers, You cannot file returns for 2004-2005 now. Such returns are considered as time-barred. Income Tax officer might nbot even accept such return.
vivek asked, I am recieving house rent about Rs 50000. will I get 30% rebate on this amount for maintenence purpose.
Vikas Gandhi answers, Yes deduction of 30% is a standard deduction, irrespective of whether you spend so much amount or not.
sukhiz asked, suppose if a person doesnt file taxes for 2-3 years can he file the previous returns along with the current year filing. Pls confirm along with tax implications such as penalities if any. also can one submit combined reciept/statement of Insurance paid for each year with current date
Vikas Gandhi answers, You can file such returns, provided the Assessing Officer aggrees to accept the same. This is because if he accepts such late return, he has to select your return for assessment. Hence you would be called with all the documents and explanations for the return filed. Further he may also levy a penalty of Rs.5000/- for each year.
ummachan asked, I have bought a second hand flat. The Stamp duty and Registration fees had been paid on March 7, 2007. I have not claimed for Ta Rebate last year. Can I claim for deduction in Tax under Section 80 C in this year for the above mentioned Registration and Stamp duty ??
Vikas Gandhi answers, No since this expenses relates to previous year, you cannot claim deduction for such expenses in current year.
Vikas Gandhi says, That's all for this session, friends. Will be available for answering your questions, next week. Till then good-bye.
Chat with Vikas every Thursday at 4 pm
(Due to circumstances beyond our control, date and time of chat may change)