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Want to save more tax? Here's help!

July 24, 2009 09:08 IST
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Union Finance Minister Pranab Mukherjee marginally raised the Income Tax exemption limit, abolished Fringe Benefit Tax and Commodity Transaction Tax and announced some schemes to benefit the aam aadmi.

What exactly does the Budget hold for the common man? Will you benefit from the Budget proposals? Or do you really don't care? How does it affect you?

What are the best investment oportunities open to you? How best can you save taxes?

In an hour-long chat on Thursday, direct tax expert Vikas Gandhi offered some valuable tips. Here is the transcript:

Vikas Gandhi says, 
Good evening friends and welcome back to the tax chat session.

roshni asked, I had worked for two companies, 6 months each. I did not claim HRA, no exemption on Form16, How to claim ?
Vikas Gandhi answers,  at 2009-07-23 15:21:56Even if your employer has not given you the exemption for HRA, you can additionally claim the same while filing your income tax return. For calculating the exemption, you can visit online site like and calculate the same.
Deep asked, Hi, I am planning to sell my existing flat where I am staying right now and buy in different place? Since I bought my existing flat for 10L and now say I am selling it for 30L, and buying new one for 40L, do I need to pay tax on that 20L gain? Let me know.
Vikas Gandhi answers, If the flat that you propose to sell is a long term capital asset (i.e - you held the same for three years or more), then you need not pay any tax on the gain, since you are investing in another house.
dfdfde asked, I have FD accounts in two banks. According to my calculations, the interest gained from both the FD accounts is unlikely to cross Rs. 10000 and therefore, there will be no TDS deduction. I need to know if I still have to show the income as a gain and pay tax for it. Say if I get Rs. 8000 as returns from the two accounts, do i need to add this 8000 with my income and then calculate the tax?
Vikas Gandhi answers, Irrespective of whether tax has been deducted or not, you have to declare all the income that you have earned during the year. Hence declare the income of Rs.8,000/- with other income, pay tax accordingly and then file the same.
asok asked, I am a govt sevant staying ingovt quaters. Paying rent to govt. But still not claimed any tax exemption for the same under 80 GG. Can I Do it?
Vikas Gandhi answers, If all the other conditions of the section are applicable then you can certainly claim deduction for the amount of rent paid under section 80GG.
Vijay-Chennai asked, I have 2 Form-16s (One from the ex-employer and one from the present one) - Do I need to combine both and file ITR or file only the latest ITR? If I combine both, it seems I owe an amt of 35K to be paid as Tax. Pls clarify. Txs.
Vikas Gandhi answers, You have received salary from 2 employers and hence you have to declare salary received from both the employers. As regards additional tax liability, it is because while deducting tax from your salary, both your employers have granted you the basic exemption limit of Rs.1,50,000/- and further calculated tax @ 10% & 20%. However as an individual you are eligible for claiming the exemption only once. Hence when you combine both the income, it results in additional tax liability. Had you declared your previous employers salary to your new employer, this would not have been the result.
ROHIT asked, I filed my income tax return for A.Y. 2008-2009 online on 31st march 2009, however I failed to send ITR-V to the Income tax office in Banglore. Should I file my return and pay the tax amount again or is there any other way for it?
Vikas Gandhi answers, File your return but you do not have pay tax again.
aji asked, if we do not have HRA allowance in our salary structure how much is maximum amt exempted for filing IT return
Vikas Gandhi answers, To claim HRA exemption, HRA should first form part of your salary structure. Since in your case, HRA does not form part of your salary, you cannot claim HRA exemption. If you are paying rent, you may opt for claiming deduction u/s 80GG.
aaaa asked, My friend has bought 2 flats measuring total 710 sq.ft. having combined entrance. he bought on loan. & he is availing deduction on the interest . now he want to rent out one of the flat. He will have to pay tax on it ? If he takes rent in cash then what happens ?
Vikas Gandhi answers, Declaration of income does not depend upon whether you receive income in cash or cheque. Hence if you receive rent, you have to declare the same and pay tax on it.
Ansuman asked, I have salary income of 1.72lakhs per annum.Rs.25000 as LIC premium.I fall below the basic exemption limit.I have a PAN No.also.Should I file the retirns for 1st time.Ist it required since I am below 1.5lakhs
Vikas Gandhi answers, Since your gross income before giving effect to any deduction is above the basic exemption limit, you are required to file your income tax return.
chand asked, hi,i have some tax due. how can I pay that. which chalan i have to use. and also if I pay it by july 31st,then should i also pay the interest on that tax amount or only have to pay the tax amount
Vikas Gandhi answers, For making payment of tax you can use challan no. ITNS-280. If you have net banking facility, you can also make online tax payment. Interest depends on your tax liability. However if the same is payable you have to pay alongwith the tax amount. this is because any payment ou make will first be adjusted against interest and then against tax.
rd asked, I have bought 200 shares of Deba bank on 10/7 and 20/7 (100 on each day) @ Rs. 45/- and Rs. 50/- resp. Out of which I sold 100 shares on 22/7 @ Rs. 52/-. How do I calculate short term capital gain or share peuchased on which date shall I consider for the purpose of short term capital gain?
Vikas Gandhi answers, The shares that you purchased first will deemed to have been sold first. Since you have sold 100 shares, the one you purchased on 10/7 will considered to have been sold.
UIYT asked, i paid 5000 as donation to street children by some orgn and have the receipt (indicating tax exemption) . how much tax saving will be done??
Vikas Gandhi answers, The amount of deduction you will get for such donation is 50% of (the amount donated or 10% of your total income - other deductions)
ramesh asked, I have taken personal loan and paying interest and also i have received some interest from bank. Can adjust same while coputing income tax if so how
Vikas Gandhi answers, Sorry, buut you cannot adjust your saving bank interest income against the interest you are paying on personal loan.
Ghulam asked, What is remedy if I had 2 jobs in a Year and my old employer is not giving me FORM 16?
Vikas Gandhi answers, There is no remedy to my mind. You will have to get your Form-16 from your employer. It is your lawful right to receive Form-16 from your employer.
Vikas Gandhi says, That's the end of this session, friends. Chat with you next week. By that time kindly ensure that you have filed your income tax return.

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