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, Hello Friends
Praveen asked, Is it necessary to declare in Income tax return, all the capital gains made, even those which are tax exempt?
Vikas Gandhi answers, at 2008-07-03 16:06:46All exempt income whether capital gains or any other income like dividend etc have to be declared in the income tax return. There is a specific column for this in the return form.
merv asked, Dear Sir, I have a question regarding filing of IT return. It is very helpful for me, if you can guide me. I have changed my job in Dec' 07. I am not falling into any TAX slab, if you consider two different employers. But, if you combine both employers, then i am falling into 20% slab. My Annual Income was 2,39,000 (By Considering both employers). I have recd FORM 16 from both employers and none of them have deducted TDS as my income did not exceed 1.1 lac. I have provided all my investment details to both of my employers and they also shown the same in my FORM 16. Secondly, I have shifted from Gujarat to Mumbai. My PAN is from Gujarat. Can I file my return from Mumbai?? or I have to file it from Gujarat only. Pls. guide me. How should i file my return?? Kindly advice me. I am very grateful to you.
Vikas Gandhi answers, It is Ok if none of the employers have deducted tax. You have to calculate your total income including both salaries and all other income, then claim your deductions. After doing so pay the tax & then file your return. Reading your question it is not clear but I presume that your current employer is in Mumbai. If yes, make an application of PAN for change in address and get your PAN card updated with your new address. Then you will be able to file your IT return in Mumbai.
Shyam asked, Hi, I am taken home loan and I want to avail tax benefits. What proofs need to be provided?
Vikas Gandhi answers, As per the current procedure, no documents or proofs have to be attached with the IT return. However, you should take the interest & principal re-payment certificate from the Bank or Institution through whom you have taken the Home loan, you will require them as & when you are asked for by the IT dept.
Ram asked, Hi, i have question on teax benefit on gift. If i gift 2L to my father, how can my taxable income will be reduced by 2L and under which act this will be covered
Vikas Gandhi answers, By giving a gift to your father, you can not reduce your taxable income. Only by making tax saving investments you can reduce your taxable income. Also note since your father is covered under the exempt relations the amount you gifted will not be taxed in his hand.
Seshu asked, How many months do I need to hold all my last financial year rental bills after my filing of returns?
Vikas Gandhi answers, As per the IT rules all proofs establishing your income or expense or deductions have to be maintained for 7 years from the end of the financial year it relates
Seshu asked, After I get stamped on my filing returns papers , is there any chance in future to be audited again? I mean if I show some HRA bills and later I lost it, what will happen?
Vikas Gandhi answers, As per the IT rules all proofs establishing your income or expense or deductions have to be maintained for 7 years from the end of the financial year it relates. Therefore retain your HRA bills if called for by the IT dept. you will have to produce the same.
Deepak asked, Hi, I have a 2 flats. One i stay other i have given on rent from Dec'07. How much should i show as income from my House Property
Vikas Gandhi answers, You should declare your Income from House Property as: Show the flat in which you reside as Self occupied & claim exemption. For the one on rent declare the rent income.
mdas asked, I am a slaried person and has housing loan. My form16 says Rs.56 as tax payable, rest was TDS. I paid the amount through a bank. What ITR form should i use and in which column this Rs.56 should be put?
Vikas Gandhi answers, If you have any of these income i.e.Salary, Interest & pension then ITR form 1. Apart from any of the above if you also have capital gain or House Property Income then ITR form 2
Nkd asked, hi vikas, i still not getting picture how tax is calculated cos inspite i am having home loan Principal Amt 8771 and Interest Amt 103897. I am still liable to do investment of 110011.
Why that so ?. My Gross PAckage per annum is 3,86,400/-
Vikas Gandhi answers, As per the limit information given. After deduction your home loan interest & the deduction of your primcipal re-payment amount your income remains above the basic exemption limit. The deduction under tax saving schemes can be claimed upto 1 lakh reduce 8771 & you can invest the balance.
svs asked, I received my revised salary with difference of Jan, Feb & March in Salary of March Paid in April. This difference amount will considered in which financial year? And if i am liable for more tax?
Vikas Gandhi answers, Your salary certificate will include your whole salary for the financial year though it is paid in april. Your TDS must have also been deducted, ehcen declare your salary income based on the Form 16 (salary certificate). This will be the correct taxable income as well as help you claim your TDS properly for that year.
pssesh asked, Tution fees paid is covered under section 80c with a overall limit of rs.one lac. However, most of the tax working packages restricts this exemption to Rs.24,000. Kindly clarify which is the amount exempted
Vikas Gandhi answers, Your understanding is correct, now the tution fees paid are included in the over all limit of 1 lakh under Sec 80 C.
SURESH asked, HI, MY SALARY IS RS 170000 PM,CAN I PAY TAX
Vikas Gandhi answers, Your emploeyer is duty bound by Income Tax law to deduct tax before paying you the salary. Hence if you pay the same you will land up paying excess tax. In case if he does not deduct for some reason (which he should not) Then you need to pay the tax, since at the end it is your liability.
RG asked, Dear Sir, In last Financial Year (2007-08), besides taking a Home Loan from a Bank, i also borrowed some money from an individual for the same purpose and paid interest to him on that. Some amount of this interest was paid in the last financial year and some amount is paid in the current financial year. Can i claim tax exemption on paid interest. Whether interest paid in current year can be claimed while filing return for assessment year 2008-09? Is any document / certificate is compulsory from that individual from whom i borrowed the money.
Vikas Gandhi answers, You can claim interest paid for home loan whether from a Bank or an Individual. The max limit is Rs.150000/- for a year. You can only claim the interest which is paid during the financial year. It is always a good practice to obtain proof of payment of interest, this will be useful in case of any query from the IT dept. in future to establish your deduction of interest
ramchand asked, MY EMPLOYER DEDUCTED THE TDS BUT NOT PAID TO THE GOVT. FOR THE MONTH OF JAN,FEB& MARCH OF 2008. HOW DO I FILE MY RETURNES.IAM IN THE 30% TAX BRACKET. IF MY EMPLOYER HAS NOT PAID AFTER THE DEAD LINE WILL THERE BE ANY PENALTY FOR ME FOR NOT FILING THE RETURNS ?
Vikas Gandhi answers, If you have only salary income & your employer has deducted the tax on the whole salary income properly, then there wil be no more tax payable by you. In such case delay in filing your return there will be no interest to be paid since there is no tax payable by you. I have presumed that you do not have any other taxable income. You will have to wait till you get the Form 16 with all TDS payment dates to claim the credit, so delaying your return can not be avoided.
nitin asked, I own a house in aother city than where I am staying, do I need to mention notional income/expected rent even though I have not given house on rent?
Vikas Gandhi answers, Since you have not given the other house on rent, it means both are under your occupation though one is not physically occupied. You need to make a choice to declare one house as self occupied as per your selection. Then declare the other house mentioning notional income. If you do not do this in future on sale of that house the capital gain exemption can be denied to you, since the condition is that such house needs to be declared under income from House property.
ramu asked, hi sir, Myself and my wife took house loan jointly. shall both go for tax benfit?
Vikas Gandhi answers, If both have bought the house jointly & also the loan then each one of you can proportionately re-pay the loan & interest according to the proportion of share. Doing this each one of you will be able to claim the tax benefit accordingly of your respective re-payments of principal & interest paid.
Vikas Gandhi says, Good bye friends, the scheduled time is over. Meet you all on next Thursday.
Chat with Vikas every Thursday at 4 pm
