What investment options should you go for this year? What should you do to bring your tax liability to the minimum level?
In online chat with rediff.com on Thursday, direct tax expert Vikas M Gandhi replied to many such readers' queries. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the Tax chat session.
JitendraC asked, Hi Vikas,for salaried person we have to fill ITR1 form.For total taxable income, home loan interest is get deducted from head of salries column and Taxable income will get retrived, but I did not seen any provision for mentioning the Home loan interest and Principal on ITR1. How should I fill it?
Vikas Gandhi answers, at 2008-06-12 15:59:02Salaried person do have to file ITR-1, but only in the case when the person has only salary income and interest income. In case the person has any income other than salary and interest, he will have to file ITR-2 and not ITR-1. Hence in your case since you are paying interest on housing loan, you will have to fill ITR-2.
kabita5 asked, Hi Vikas, please let me know the last date of filling return for year 2007-2008 incase if once fails to file it by July 31st,2008. Thanks
Vikas Gandhi answers, The last date of filing income tax return for F.Y.2007-2008 is 31st July, 2008. If you fail to file return by 31st July, you can file return subsequently also till 31st March, 2009. In such a case, the consequence will be as under- a) If your tax calculation result in additional tax payment, you will have to pay addiitonal interest @1% per month for late filing of return. b) If your tax calcuation results in refund, any interest on refund will be calculated from the date of filing return which would otherwise have been calculated from 01/04/2008. If you file return after 31/03/2009, in addition to above you might be penalised upto Rs.5,000/-
Tushar asked, I have my PAN of Mumbai.Till last year due to my employment in Pune I was filling my return in Pune. Now I have shifted back to Mumbai and having my employment in Mumbai only since November 2007.Please advice me as to where should I file my return.
Vikas Gandhi answers, For the F.Y.2007-2008, you will have to file your return at Pune. Alongwith this return you will also have to file a letter to the Assessing Officer asking him to transfer your case to Mumbai, owing to your employment at Mumbai. With this procedure you will be able to file your return at Mumbai next year.
Rajeev asked, What is the maximum excemption limit 100000 or 120000.
Vikas Gandhi answers, For the F.Y.2007-2008, the basic exemption limit is neither 1,00,000/- nor 1,20,000/-. The limit is Rs.1,10,000/-.
shashi asked, dear sir i am govt teacher and i got arrears (remaining salaries )at the last of march and my tax was deducted .i want to know that if i have paid LIC of my unemployed husband can i get rebate under section 80 c on the savings in the name of my unemployed husband
Vikas Gandhi answers, If you have paid insurance premium for your husband out of your income, you will be able to claim deduction for such premium payment u/s 80C.
Anupaam asked, Hi I have bought a house this feb 07 .Can I claim deductions for the home loan[interest ] next year without staying in the house its too far from where I wpork I will not be giving it on rent.
Vikas Gandhi answers, By too far, if you mean in a different city or state altogether, than you can claim benefit of home loan repayment.
Samir asked, After doing my self assessment i found out that i have to pay RS 843 in Tax. Can you let me know the form no(Challan) which i shud use to pay the same?
Vikas Gandhi answers, You can make this tax payment either online or offline. For making the tax payment you have to fill ITNS-280.
Kumar asked, Good afternoon Vikas, I am salaried employee. Till last year i filed my returns in Bangalore as I was working there. I have moved to Hyderabad now. I have two form 16 as I worked for two companies during FY07-08. Could you please let me know where to file my returns now for AY 08-09. Any precautions needed to file the same.
Vikas Gandhi answers, A salaried individual is required to file his income tax return in the city where is employment is situated. Since you are currently employed at Hyderabad, you are required to file return at Hyderabad. However if you have filed return last year at Bangalore, you should file return at Bangalore this year alongwith a request letter to transfer your case to Hyderabad.
JIGAR asked, DEAR MR. GANDHI, I M SALARIED PERSON, I HAVE FILED MY LAST YEAR IT BY MY SELF ONLY - ITR1, JUST WANT TO KNOW THAT CAN I HAVE TO MENTION INTEREST INCOME FROM SAVING ACCOUNT AND UNDER WHICH HEAD AND I AM ALSO INVESTING IN MUTUAL FUND SO WHICH FORM I HAVE TO FILE ITR1 OR 2.
Vikas Gandhi answers, You should mention your interest on savings account. It is your income. this interest amount has to be mentioned under Income from Other Sources - Interest.
There won't be any change in ITr form. You can still file your return in ITR-1. If its only investing, there won;t be any change in form. However if you have sold such mutual funds, you will have to file your return in ITR-2.
mhsyed2007 asked, i am working abroad for many years,from my property i am getting 10k rent,is it necessary to file IT? i got PAN Card as well. pl advise
Vikas Gandhi answers, Since the monthly rent is Rs.10,000/-, the taxable income will be within the exemption limit and hence you will not be required to file any income tax return in India.
ravie asked, Hi vikas, Good after noon, If my taxes are nill, and has to file the returns with form 16, should i pay any nominal amount and Can i submit the returns in SBI.Thanks
Vikas Gandhi answers, If your taxes are Rs. Nil, there is no requirement to pay any additional amount. You can file Nil return also. Further you have to file return at Income Tax Department only and not with SBI.
raju asked, Hi I made a loss of 12 k in shares. Can i claim for the refund on it. and what is the % of tax exemption on such things.Do i need to include brokarge charges also for claiming deductions. EX: I bought shares worth 10k and sold them for 4k so the brokarge for Buy and sell is 200. So do i need to claim the exemption for 6k or 6200...Please tell me
Vikas Gandhi answers, Loss on sale of shares cannot be adjusted against any other income and hence you will have to carry-forward such loss to subsequenbt year and will be able to adjust this loss when you earn profit on sale of such shares. You should deduct brokerage expenses from the sale price while calculating the profit / loss
ritu asked, Hi Vikas! My question is if i have purchased a mediclaim policy for my mother and father then would i get any tax rebate on it? Thanks Ritu
Vikas Gandhi answers, Yes, you can claim benefit for the medical insurance premium paid for your parents
Ashok asked, Dear Vikas, Can we claim tax exemption on the interest amount paid towards educational loan.(Regular full time university degree)?
Vikas Gandhi answers, If the loan has been taken for higher education and such loan is taken from either a financial or charitable institution, you will be able to claim tax exemption on the interest amount paid towards such loan.
Ranveer asked, Dear Vikas, I have worked for two companies in the last financial year. Do i have to club both incomes and submit both form-16s when i submit the IT-returns ?- Thanks
Vikas Gandhi answers, You have to club both the salary income and file income tax return. However you are not require to submit Form-16 or any other document while filing return of income.
pragnesh asked, Hello, I am pragnesh. My father owes the home. Now we ( my self and father) have taken Home loan on joint account for Renovation. I am salaried person. The EMI Amount is deducted from my salary account. Monthly EMI RS. 4305/- So am i eligible for tax deduction. IF yes, how much?
Vikas Gandhi answers, Since you are not owning the house, you cannot claim any tax benefit for the loan taken.
deepak asked, I have been filing my return for many years,since on line filing of return began last year.I found that there is no option for claming relief on income from minor ,which is Rs 1500.00 per child.What should be done?
Vikas Gandhi answers, It's true that separate space has not been provided for claiming deduciton u/s 10(32) for minor's income. In such a case, while declaring income of minor, delcare the net income (after reducing Rs.1,500/-) and under Schedule Exempt Income, show that such amount has been claimed exempt.
anand.natarajan asked, Hi Vikas , i had given/gifted my wife Rs.2 Lakhs and it was put under fixed deposit in a joint account of us with her being primary account holder. Can i show the interest from the fixed deposit in her name under tax returns and not pay tax ..also she has some interest coming from the same join account , will that be shown under her return too , Please advice , Thanks
Vikas Gandhi answers, The interest oyur wife is earning is out of the funds gifted by you and hence by the clubbing provisions of Income Tax law, this interest income will be considered as your income and you will have to pay tax on the same.
IPS asked, Dear Sir, If I receive money in cash as gift from my close relatives (father/brother)then in the income tax return form where will I show it and whether the money received would be taxable.
Vikas Gandhi answers, Gift received from relatives are exempt from tax and hence you do not have to pay any tax on such gift income. You can show such gift income under schedule of Exmept Income.
Arun asked, Hi Vikas, Can I sent ITR V by postal mail to any of the nearest IT Office after filing ITR 1 Online
Vikas Gandhi answers, It would be better if you personally submit your ITR-V to the Income tax Department, rather than sending thru postal mail. By personally submitting you will be assured of getting an acknowledged copy of ITR-V.
Vikas Gandhi says, That is all for this evening friends. Chat with you next week.
Chat with Vikas every Thursday!
