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Filing tax returns? Here's help

June 27, 2008 13:36 IST
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 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

Jobi asked, What do the tax form mean by income from other sources?
Vikas Gandhi answers,  at 2008-06-26 15:55:53In the Indian Income Tax Act, the income has been classified into five sections, viz: a) Salary b) Income from House Property c) Business / Profession Income d) Capital Gains & e) Income from Other Sources. The income that a person earns has to fall in either of the above category. If the income earned does not fall in any of the four above mentioned category, it falls under Income from Other Sources. this is a residual section. Examples of Income from Other Sources are Savings Bank Interest, FD Interest, Tuition Fees Income etc.
Anurag asked, Till last year i filed my Tax returns from my native palce, and currently i am working in Hyderabad, can i flie IT return from Hyderabad. I have PAN card issued from other city.
Vikas Gandhi answers, Since till last year you filed your tax return at your native place you will have to file return for current year at native place only. However once you file your return, make an application to the Income Tax Officer, requesting to transfer your file to Hyderabad, since your employer is now situated at Hyderabad.
sameet asked, If I do not have a PAN number will I get into trouble if I file a return?
Vikas Gandhi answers, Without PAN you will not be able to file your Income Tax Return. Hence apply for PAN immediately and file return once you get the same.
salariedperson asked, Hi Vikas, I'm a salaried employee and have a home loan. I have no income other than my salary. Which form should I use to file returns?
Vikas Gandhi answers, On account of home loan, you will be paying interest on such housing loan. Hence you will have to file your return in ITR-2, although you don't have any income other than salary.
JIGAR asked, Hello Sir, Sir, I m salaried person I have few questions; 1) can we have to take interest income from saving account in IT calculation and are this taxable. 2) if yes then in which column we have to show this. 3) from my employer TDS has been deducted on my salary, so if I include interest income from saving A/c then my liability will increase, then where & how can I pay this amt to IT department. Thnx
Vikas Gandhi answers, You have to include your savings bank interest while calculating your taxable income and pay tax on the same. In ITR you have schedule of Income from Other Sources. Include your bank interest in this schedule. FOr paying tax you can pay the same either online or offline. For online payment of tax, visit tin.nsdl.com.
skr asked, i am working as engineer and salaried..i have a small business..which gets me some income..do i need to file the tax seperately for both and can i neglect the small business income even though its on my name.
Vikas Gandhi answers, You have file one income tax return, including income from all the sources. It is not advisable to neglect your business income, however small it may be.
Gora asked, How do I deal with income from house property? I do not stay in this property but is rented out to a doctor for his clinic
Vikas Gandhi answers, The annual rent you receive from this property is your income. From this income you can deduct the amount of municipal tax you paid during the year. On the residual income, you can claim 30% flat deduction on account of repairs. In addition to this you can also deduct interest paid on housing loan, if any. the balance amount is your income from house property.
dd asked, Sir I worked as LIC agent and getting commission also after discontinue. I am working in Govt and filing IT. Already TDS as deducted in both places. Whether I can mention the commission in Other income or what I should do?
Vikas Gandhi answers, You can mention commission as your other income and file your income tax return.
rani asked, hi, My previous employer has not given me the benefit of HRA, so while filing my return can i take that into account.
Vikas Gandhi answers, You can certainly claim such exemption, if you are entitled for such exemption.
ksr asked, I have filed the e-return and taken a print out of acknowledgement. What attachments needs to be submitted along with signed copy of acknowledgement to the Income tax office.
Vikas Gandhi answers, Normally you are not required to attach any documents alongwith ITR-V. However it would be safer to carry following documents when you go for filing, just to avoid inconvenience - a) Copy of PAN card b) Copy of last years acknowledgement c) Form No.16
din asked, Can I file the income tax returns online? could you let know the processs Thanks
Vikas Gandhi answers, Yes, you can file your income tax return online. Today various online
sites are available which allow you to prepare electronic return which is foremost requirement for online filing of return. Taxsmile.com is one of such site.
sanjubhai asked, Mr.Gandhi, Sanjubhai na pranam. Iam salaried class and I sold my old flat in July 2007 in which I stayed for five year after taking possision. What are the tax implication as got only a small capital gain and I am planning to buy another flat.
Vikas Gandhi answers, Whatever small gain, it is taxable and you have to pay tax on the same. However if you are planning to buy a new house very shortly, you can open a Capital Gain account with any bank and deposit the amount, before you file your return or due date whichever is earlier. As a result tax on capital gain will be exempted. however you will have to purchase another house within a period of two years.
TESRAJAN asked, I SOLD(AUG07) A HOUSE PROPERTY FOR 60LACS AND DEPOSITED THE PROCEEDS IN THE CAPITAL GAINS ACCOUNTS SCHEME ON 1.3.08 HOPING TO FIND A HOUSE FOR PURCAHSE IN 2YEARS. HOWEVER I FOUND THAT I CAN'T FIND A HOUSE FOR 60 LACS IN CITY.I KNOW I WILL END UP PAYING 22.66%AS CAPGAINS TAX AT THE END OF THREE YEARS.IN ORDER TO MINIMISE THE LOSS CAN I WITHDRAW Rs50 LACS FROM THE CAPITALGAINS ACCOUNTS SCHEME AND DEPOSIT N THE RURAL ELECTRIFICATION BONDS FOR 3 YEARS? WILLIT BE ACCEPTED BY THE TAX AUTHORITIES,BANK?PLEASE ADVISE.INDEXED PRICE OF THE PROPERTY IS ONLY Rs1.18 LACS
Vikas Gandhi answers, Deposit in REC bonds has to be within 6 months from the sale of asset. Since 6 months have already passed, I am afraid you will not be able to plan such a thing. You have two years to purchase and hence wait for suitable time and invest in property within this period.
Manjunath asked, Hi, For the financial year 2007-2008, Tax payable and Tax paid are same and i dont have get any returns from IT. Is it mandatory to file the returns??????
Vikas Gandhi answers, Yes you have to file income tax return although there is no additional tax to be paid or any refund due. Tax is not a criteria for filing income tax return. if your income exceeds the basic exemption limit, you have to file income tax return.
prasadk asked, Hi, Please help with Long term capital gains tax. Should it be disclosed in the tax return and then be claimed as tax free or need not be disclosed ?
Vikas Gandhi answers, Any income whether taxable or not has to be disclosed in your income tax return. Hence you should disclose your long term capital gain, even though the same is exempt from tax. This is in your interest.
tax asked, Dear Mr. Vikas. Good Afternoon to you. I am a salaried person staying in mumbai. I have changed my job in last financial year. Now, how can i file my tax? do i need two form 16 from my both employers? can i file my return from mumbai?? i have shifted from vadodara to mumbai. my PAN belongs to vadodara.
Vikas Gandhi answers, Since during the year you have worked with two employers, you should have two Form 16 and both this income has to be declared in your income tax return. As far filing is concerned, you will have to file the same at Vadodara this year. Also file an application for transferring your file at Mumbai on account of change of job and employer being based at Mumbai.
ajeet asked, i am a Salaried person & i loss 30,000 Rs in share market. Can i claim this loss in IT return form as a loss of my income?
Vikas Gandhi answers, Yes you can and you should claim such loss while filing income tax return. Although such loss will not be adjusted against your salary income, you will be able to carry forward such loss to subsequent years and adjust the same when you have profit from shares.
Jayadev asked, I changed my company 6 months back, and I haven't paid and deductions in the form of TDS in my former company, now this company is deducting TDS - what shal I do for the porevious companies tenure, do I need to pay that to IT whilst filing my return???
Vikas Gandhi answers, It would be better if you declare your salary income from previous employer to your current employer. this will enable your current employer to deduct proper TDS from your salary, as a result of which you will not be required to pay any additional tax.
Vineet asked, I wish to file IT returns online at taxsmile.com. Can they help in submitting the hardcopies too, and take receipt. What is the procedure.
Vikas Gandhi answers, You have all these facilities. Kindly visit the site for further information.
sandy asked, is it mandatory to get the accounts audited if the turnover exceeds 40 lacs ?
Vikas Gandhi answers, Yes it is mandatory to get your books audited if your turnover exceeds Rs.40 lacs during the year. Failure to do so will end in levy of penalty of Rs.1,00,000/- (maximum)
narayanan asked, I want o gift to my son an amount of Rs 2.5 lakhs who is also filing income tax return under salaried head. Can I just transfer the amount from my bank account to his without preparing any legal document. Please advise me.
Vikas Gandhi answers, there should not be any problem as such. But it is always advisable & recommended to prepare a Gift Deed when you give such gift to avoid any unforeseen hindrances.
Vikas Gandhi says, That's all for this session friends. Chat with you next week.

Chat with Vikas every Thursday, 4 pm