'Pay tax on any income earned by non-working spouse and kids'
Last updated on: February 06, 2019 11:30 IST
Tax expert Anil Rego answers readers' questions about how Finance Minister Piyush Goyal's Budget affects you.
IMAGE: Finance Minister Piyush Goyal poses with a briefcase containing Budget papers at his North Block office in New Delhi on February 1, 2019. Photograph: Arun Sharma/PTI Photo
Nitin Deshmukh Q: Do you think the Interim Budget 2019 will win the 2019 Lok Sabha election for BJP?
Anil Rego Ans: This is a question which we could not answer with the limited available information. The interim budget has helped in undoing some major damage caused by the government to the middle class section and farmers in the recent past. But about winning the elections, only the polling data can give accurate information about the same
Suman Singh Q: Do Farmers owning upto 2 hectares to get Rs 6,000 per year in 3 instalments. Rs 20,000 crore to be spent on PM Kisan Scheme in FY19
Anil Rego Ans: Yes’s. 6,000 per annum will be credited to farmer having less than 2 hectare farm land. Direct credit will be done in 3 instalments to farmers account.
Vinayak Tavade Q: Biggest sop for middle class in the Interim Budget was enhancement of Income tax exemption limit to Rs 5.00 Lacs
Anil Rego Ans: This is not tax exemption in the slab, this is actually tax rebate. Full Tax rebate up to 5 lakh annual income for all. This helps about 3 cr tax payers out of taxation. Currently those earning up to Rs 3.5 lakh a year are eligible for a tax rebate of Rs 2,500 under Section 87A. The budget has proposed to increase rebate Rs 12,500.
Vinayak Tavade Q: Hello Sir, Can you please answer my question? My increment is due. At present my gross salary is below Rs 5 lakh. And after increment if my gross salary goes to say Rs 5, 50,000 should I accept it? Will I be getting less money in my hand due to this new budget? What shall I tell my HR?
Anil Rego Ans: Sir, please take up the increments per given information your gross income doesn't come under taxable income as of now post increment there wont be much change in the in hand receivable also you will be eligible for getting rebate under section 87A and also standard deduction of 50k
Vicky G Q: What is the tax implication if my income is above 5 lacs? Will the 5 lac tax free income liable to me?
Anil Rego Ans: As per new budget there is no change in tax slab but the tax rebate is increased from 2500 to 12500 (between the slab 2.5 lakhs to 5 lakhs)
Chandrakant Chaudhari Q: If my gross income is 750000, what will be the implication for me, if I invest Rs 150000/- in PPF?
Anil Rego Ans: Your income still falls under tax liability and is liable to pay tax as per the tax slab claim all the eligible exemptions to reduce the tax burden. Please consult a tax advisor for more information
Ruchira-Acharekar Q: Explain 5 lakh rebate funda of Interim budget in detail?
Anil Rego Ans: this is a rebate, not exemption. Previously this was applicable to people whose taxable income is below 3.5 lakhs. Now Gov has proposed to increase this to a limit of 5 lakhs. In this case a person who is earning taxable income of 5 l will be eligible for tax exemption of 12.5k. If your taxable income exceeds this limit, you need to pay tax as per existing tax
Haresh Shirgudi Q: Hi Sir, Do we get tax benefit on the 2nd property owned? How will it work? What will be the tax rollover on two properties owned?
Anil Rego Ans: Notional income on deemed to be let out property (second SOP), he is now exempt from income from house property
Ruchira-Acharekar Q: My uncle is farmer do Rs.6000 received from govt is taxable?
Anil Rego Ans: If your uncle has land less than 2 hectares and is a farmer and no other income other than from agriculture, then he is eligible to get RS.6k in 3 instalments
Aatish Jagmanani Q: Dear Mr Rego, why no government has been able to increase the income tax base? I believe only 5 crore people pay tax out of India's population of 125 crore. Why?
Anil Rego Ans: Every year there is a substantial increase in the number of people who pays tax. Also in India, the no of people who falls under taxable income is low. There is more no of kids, senior citizen (income less than 3 lakhs), non working spouse and students who are not liable to pay tax
Rajaraman Sethuraman Q: Dear Sir, Can my father claim exemption for the LIC premium paid for my policy? BTW I am aged 36 now, married & employed.
Anil Rego Ans: Dad can claim the premium paid towards LIC premium
Amol Chille Q: Hello Sir, I read a report in Economic times that if you earn Rs 7.75 lakh per year and invest properly then you will pay zero tax. Is it true?
Anil Rego Ans: If your total taxable income is coming under 5 lakhs after all deductions then you are eligible for rebate
Rajaraman Sethuraman Q: Dear Sir, in my company while considering our investments for 80C they didn’t consider GST paid on LIC premium. Why is it so? What should we do?
Anil Rego Ans: GST paid is not considered as indirect taxes paid are not considered
Rajan Sha Q: Dear Mr Rego, If I am staying on rent in Mumbai and I have my own house in Baroda for which I have taken a home loan. Will I get income tax rebate on my home loan?
Anil Rego Ans: Yes
Firoz Khan Q: Dear Mr Rego, My son is 22 year old. He has started working for a year now. Do you think I must file his Income Tax return? His salary is only Rs 20,000 per month. Does it help for him to file Income Tax return?
Anil Rego Ans: Yes he has to file return as this is an important document while availing any loans in future. So we suggest filing returns every year irrespective of the tax slab
Sandeep Kumar Gupta Q: Is there any tax benefit if I pay School Fees of my child (only 1) and if yes, is there any limit?
Anil Rego Ans: Yes. There is a limit of Rs.1.5 lakhs
Venkatesh Q: Dear Mr Rego, I earn salary which is above Rs 15 lakh. And I have another Rs 20 lakh in my fix deposit to which I pay additional tax. My spouse is a housewife and has no income. Now if I transfer my Rs 20 lakh in her bank account and put in fix by becoming a joint holder. Will I still have to pay tax on that Rs 20 lakh?
Anil Rego Ans: Yes as per the clubbing provision any income eared by non working spouse and kids, you are liable to pay tax
Sandeep Kumar Gupta Q: Hi, is there any impact if the Salary is 25 lacs and investments are-80C- 1500000 Mediclaim- 25000Home Loan Interest- 200000
Anil Rego Ans: Yes. As per chapter VIA, you can claim all tax exemptions to reduce your tax liability