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, considering the finance minister has made life easier for taxpayers? What should you do to bring your tax liability further down?
Our readers got answers to more such questions from direct tax expert Vikas M Gandhi, on March 6 at rediff.com. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome to the Tax Chat session
kam asked, do i need to give form 16 to my employee as i do not deduct tds.
Vikas Gandhi answers, at 2008-03-06 15:52:52If the salary of your employee is below the taxable limit, then you may skip giving salary certificate in Form-16. However if the income is above taxable limit, but there is no deduction of tax on account of loss from house property or on account of investments, then you will have to issue Form 16 although TDS is Rs. Nil
ij asked, I recently found out that I did not include some of my income on my tax return. What should I do?
Vikas Gandhi answers, YOu should inlcude all your income while filing your income tax return. If you have missed out some income, you should file a revised return as early as possible.
uj asked, I moved recently. How do I notify the I-T department of my change of address?
Vikas Gandhi answers, One you will have to make the necessary changes in your PAN data. For this you can download a form from the website of NSDL http://tin-nsdl.com, fill it up and submit to NSDL with suppoprting documents. In addition it will be advisable if you also intimate your Income Tax Officer about such change by writing a letter and getting it acknowledged from him.
Shyam asked, I live in a rented accommodation and get HRA. I booked a house with a home loan. Can I claim the HRA as well as benefits from the home loan? The house I bought is not yet ready
Vikas Gandhi answers, To get benefit of home loan, the first and foremost condition is that the property should not be under construction. Here since you have mentioned that the property is not yet ready in the current year you won't be able to claim any home loan benefit.
Akash Khanna asked, Dear Vikas, Please let me know whether income from fellowship, if exceeds 1.10 Lac, is taxable? I am at present drawing 15000 + HRA in a research project as fellowship. Thank you
Vikas Gandhi answers, Any income when exceeds the exemption limit is liable for tax. Hence you will have to pay tax and also file your income tax return.
TSS asked, Hi good evening I got 50,000 profit in shares apr2007 to now ?But i am in losses now. I dont want to sell now . How can I declare TAX for this
Vikas Gandhi answers, Your profit in shares can be adjusted against the loss that you have incurred. While filing your income tax return, you will have to show net capital gains after adjustment of losses. However keep in mind that Long Term Capital Loss cannot be adjusted against short term capital gain, although the reverse is applicable.
be asked, Hi, I changed to a new company 6 months back. My income crosses 1.5 lacs this financial yr. But i have not been deducted TDS in my previous company. Will I be given a FORM 16 by my previous employer?
Vikas Gandhi answers, If during the period of employment, your salary was within the exemption limit of Rs.1,10,000/-, your employer might probably not issue a Form 16.
mridul asked, lic premium due on march,paid on april.again paid regular premium on march. can it be claimed in the same financial year ?-mriul
Vikas Gandhi answers, LIC premium paid can be claimed only in the year in which the payment has been made, irrespective of the fact as to which year it relates to.
gaurav asked, i have applied for the PAN through online mode since 10 days.About the status in the site it says it is "under process in NSDL". What should i do to get my PAN?
Vikas Gandhi answers, Since it shows that your PAN application is in process, you need to wait and watch. Alternatively you can call up NSDL, refer your application no and inquire about the status.
killo asked, my house owner is paid rent of rs 70000/ month but i have not deducted tds what to do
Vikas Gandhi answers, If you are an individual having no business income, you are not required to deduct any tax while paying rent to the owner. An individual is required to deduct tax only when he his carrying on any business or profession and his books are liable for audit under Income Tax Act.
Aditya asked, Do i need to File ITR since my company already deducting Tax from my salary & i will be getting TDS certificate for the same later on. plz clarify.
Vikas Gandhi answers, This is very common notion among the employees about filing income tax return which is totally incorrect. The Form 16 given to you is just a certificate of having salary paid to you and tax deducted and deposited on your behalf to the government. The responsibility of filing income tax return is your and you have to file the same even though no additional tax is to be paid.
Siddharth asked, Hi vikas, what is the max limit allowed in 80C for tuition fees of kids
Vikas Gandhi answers, There is a overall limit of Rs.1,00,000/- under section 80C. Tuition fees is a part of section 80C and hence you can claim maximum benefit of Rs.1,00,000/-. There is no specific limit for tuition of kids. However the tuition fees is restricted to two children only.
Rajendra asked, I want to buy a home on loan. Will i get the tax benifit on principle as well as Interest part or will get only on interest part
Vikas Gandhi answers, You can claim tax benefit for both the components. For interest you get tax benefit u/s 24 (maximum limit Rs.1,50,000/-) and for principal repayment you can claim deeuciton u/s 80C (max Rs.1,00,000/- alongwith other tax saving instruments)
km asked, Hi Vikas, I stay in a rented accomodation as well have bought an apartment recently in the same locality, which is ready but lying vacant. Can I claim both HRA and Home Loan benefit?
Vikas Gandhi answers, No. Since your ownership flat is in the same locality, where you are staying currently and paying rent, you are eligible to claim either of the deduction only.
bhanu asked, bhanu, hi sir,i am employee and my annual salary is 2.5 lack, and i am also part time studying can i get tax rebate on my fees.
Vikas Gandhi answers, No deduction is given for tuition fees paid for self
andy asked, If i have not filed my returns last year what should i do will i get penalised for it?
Vikas Gandhi answers, If you have not yet filed your return for the year ended on 31/03/2007, you can file till 31/03/2008 and avoid penalty. If you file such afterwards, the officer may levy a penalty upto Rs.5,000/-
Sachin asked, Does Gurgaon comes into 50% slab of HRA like Delhi
Vikas Gandhi answers, No. for flat situated at Gurgaon, the slab is 40% and not 50% for the purpose of calculation of HRA.
dassanjaykr asked, Do my closure proceeds of 149000/= from the maturity of PO RD account (@ Rs 2000/= per month for 5 yrs) attract tax? If yes, then how much?
Vikas Gandhi answers, Rs.2,000/- per month for 5 years adds up to Rs.1,20,000/-. This is the principal amount that you have deposited. the balance amnount of Rs.29,000/- received on maturity is your income and you need to offer this income for tax in your income tax return.
eknath asked, from which period the new budget income tax exemption effected
Vikas Gandhi answers, The new budget proposals will be effective from next year starting from 1st April, 2008.
Kanty asked, I have a NRI daughter who has a house in India, receiving rentals. Since it is taxable, should she get a PAN card as NRI, and file tax returns?
Vikas Gandhi answers, She has to apply for PAN and file income tax return.
raani asked, IS employer contribution in PF subjected to TAX..?
Vikas Gandhi answers, Employer's contribution to your PF a/c will be subject to tax only if the contribution exceeds 12% of your salary. In such case the taxable portion will be only the excess contribution and not the entire contribution.
klkl asked, Hi Vikas, within a year if i want to sell my new home, how much tax do i need to pay as short term capital gain?
Vikas Gandhi answers, You will have to pay 20% of the profit as tax on such sale.
Rajesh123 asked, My father has physical disability of hearing 70% approved by civil surgeon. Can I get IT benefit & how?
Vikas Gandhi answers, If you are carrying out medical expenses of your father and he his totally dependant on you for survival, you will be able to claim tax benefit u/s 80DD of Rs.50,000/-. For this you will have to get a certificate in Form 10-IA form medical practitioner.
akhil asked, dear Vikas, i am working as s/w engineer and my father is a retired lecturer. i have submitted my sister's engineering fees this year - approx - 65000. last year my father got tax benifit as he submit the fee. can i get the same benifit in this current year?
Vikas Gandhi answers, No. You will not be able to claim any tax benefit. Such tax benefit is available to the parents and hence your father could claim it last year. Since you are brother, you are not eligible to claim such deduction.
Vikas Gandhi says, That's all for the day,friends. Chat with you next week. Good bye.
Chat with Vikas Gandhi every Thursday at 4 pm
(Due to circumstances beyond our control, date and time of chat may change)