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 answered to many such readers' queries.
Vikas Gandhi says, Good evening and welcome back to Tax chat session.
Sonal asked, Hi Vikas, My question is can I claim under 80C for a policy which is on my husbands name. we did a cash payment. we both are working.
Vikas Gandhi answers, at 2008-01-31 15:57:13You can claim deduction for such policy provided the payment is made from your account. Since you are making cash payment, you may have to prove before the Income tax Officer (if enquired) that you had so much cash as on such date. In certain cases, the Officer may even ask the reason for making cash payment. YOu have to be ready for all such answers.
dev asked, Hi- I am supposed to receive tax refund of around 10k as per my last year returns which I submitted in june 2007. Any idea when IT Dept will be refunding the same and is there any inquiry facility to check the status Thanks. Dev
Vikas Gandhi answers, It is very difficult to say when you will receive your refund. As far as enquiry with Department is concerned, you can visit the site incometaxindiaefiling.gov.in, wherein the Department has listed the status of refund for various years. You may check this site. Alternatively you will have to visit your Income Tax Officer and request for early issue of refund.
arun asked, i m central govt employee n comes under new pension scheme... in some departments while calculating income account officer are adding govt calculation and while calculating taxable income they are deducting it within limits of 1 lac.. in one way it has become that we have no control over our tax planning... while others are not including govt contribution.. also such things are not happenning in case of epf which is very similar to new pension scheme..plz clarify..
Vikas Gandhi answers, Any contribution made by your employer under new Pension scheme has to be first added to your salary. For this contribution you also get deduction which is covered under section 80CCD. Hence what your employer is doing is correct and there is nothing to worry.
brijesh asked, I have taken a home loan and paying EMI right now. However i will not be getting the possession of flat in this FY. Can I claim the tax benefit on the principal part of EMIs under section 80c.
Vikas Gandhi answers, No, since the property will not be in oyur possession in the current year, you can neither claim interest benefit nor the principal repayment benefit u./s 80C.
anilrohilla asked, hi Vikas ,my question is ,last year i have changed my Job and for IT return ,weather i have to use both Form 16 or my new comapny will provide me single Form 16 which is having details for old one also ,thanks and regards
Vikas Gandhi answers, You have to include data of both the Form No. 16 received from the employers.
JOSEPH asked, Is Non Resident Women Assessee too entitled to get 145,000/- I.Tax exemption for A.Y.2008-09?
Vikas Gandhi answers, No. A non-resident female tax payer is entitled for basic tax exemption of Rs.1,10,000/- only and not Rs.1,45,000/-
rajmathur asked, can my uncle gift a proprty to my daugthers???????pls reply the tax issues in this case?
Vikas Gandhi answers, Your uncle can certainly gift a property to your daughter. there is no tax implication as far as your uncle and your daughter ic concerned, since the gift is in kind and not in cash. However if your daughter is minor and the property that receives is given on rent, the rent income will be taxed in your hands.
rajmathur asked, i have not files IT returns for last year till now,how long is it ok?
Vikas Gandhi answers, By last year if you mean 31st March, 2007 you can stiull file the returns by 31st March, 2008. In such case some interest will be levied, but you will escape from being penalised.
stena asked, Hi vikas, question is i have changed my job and will be working at a new company from feb.what letters(tax) should i collect from my prev company?tax filings and calculations which are not done so far ,will it be done in my new work place or should i ask from prev work place?
Vikas Gandhi answers, From your previous employer atleast take the working of your taxable salary till Jan'08 and tax deducted till that month. You need to give this details to your new employer, who will consider the same while calculating your taxable income and deducting tax thereon.
sk asked, Hi Vikas, I am investing in stocks pls tell me how to pay tax arising because of capital gains, I am having income from salary also for that employer is deducting tax and paying to IT dept. Can I attach cheque while filing IT return? And does capital gains are calculated including all the taxes paid like STT and brokerages?
Vikas Gandhi answers, To pay tax on capital gains, you first need to know whether the gain is short term or long term. If you have kept shares for more than one year the gain will be termed as Long term other wise short term. Long Term capital gain is exempt from tax, whereas short term capital gains is taxed @ 10%. Although your employer is deducting tax , it is only on your salary income. you cannot attach cheque while filing return of income. You need to make tax payment in nationlised bank.
Sudhan asked, In case of Long term gains from Equities(Shares) after paying STT should be declared in IT returns form even if we need not pay the tax for the same!
Vikas Gandhi answers, Yes, you do need to report such income under Exempt income category.
DeepakD asked, If Someone has Short Term Capital Gain by selling of shares and profit on them is less than 1,10,000/- . and no other income. Is it liable to tax ?
Vikas Gandhi answers, No, if the total income is within the exemption limit, one is not required to file the return of income
AK asked, I have a house in my name which is fully paid and now I am buying another house on loan. I propose to rent it out. Can I claim loss of income on this on the rent/interest difference?
Vikas Gandhi answers, Yes, you can claim such loss and even adjust against other income.
girish asked, Hi Vikas, i want to know if there are any stock options that come under incometax rebate?
Vikas Gandhi answers, As per my knowledge, none of the stock options come under income tax rebate.
shabana asked, How does one calculate the capital gains tax; if a property was purchased at 5 lacs in 93 and gets sold at 25 lacs in 2008, tax has to be paid on which amount??? 25 lacs or 25-5=20lacs???
Vikas Gandhi answers, It is neither 25 lacs nor 20 lacs. For knowing the capital gain, the cost of the hosue first need to be adjusted based on the inflation index. I suggest you to visit some website wherein capital gain calcualtor is provided and know your capital gains. Taxsmile.com also provides
Shashikant asked, I have submitted my I T Retuen for the Ass Year 2007-08 in Jan 08 with short term capital loss for the year to be carried forward. Will I get C/F of Loss.
Vikas Gandhi answers, Since you have lately filed your income tax return, you won't be able to claim such carry forward of loss.
rohit asked, hi sir, i am a software professional who is working in an bangalore based company.i've purchased angricultural land worth Rs.10 lacks. can i get tax benefits from this investments. my ctc is Rs.8 lac/yr.
Vikas Gandhi answers, You don't get any tax benefit for purchase of agricultural land.
Diwa asked, Hi Vikas, I plan to invest in a property (Flat), which would be my second one and intend renting it out. Is it possible to claim tax exemption on the interest and principal component for this property as well. regards Diwa
Vikas Gandhi answers, Yes, you can certainly go ahead and claim both the deduction.
sriranga asked, Hi Vikas,Iam staying in my own house with my father.He has not legally entitled his property to me.Can i claim house rent allowance from my father for Tax deductions?
Vikas Gandhi answers, You can pay rent to your father and claim the benefit of house rent allowance.
vivek asked, My father and I live in a Flat. He bought a separate flat in Dec 2006 for 67 lacs for investment purpose. He sold it in Jan 2008 for 74 lakhs. Is he liable to pay captial gains tax? If yes, how much? Is there any legal way to minimise tax outgoing?
Vikas Gandhi answers, Since your father has sold the flat within 3 years of its purchase, the entire profit of Rs.7 lacs will be treated as short term capital gain and have to pay tax @ 30%. There is no exemption available for short term capital gains
vs asked, whether it is necessary to take the details of previous employment of the employees who have joined aftr apr-07 in the current year for the purpose of tax deduction at source u/s 192 and need to include in form 16/16AA or we can deduct only on the salary paid by us to the employee ??
Vikas Gandhi answers, As a good policy you shoud consider the salary and tax deducted by the previous employer while deducting tax. This will relieve the employee from paying additional tax and interest while filing return of income. As far as Form No.16 is considered, since such column is not available you should not include the same in Form No.16. Thus although there will be some refund in Form No.16, the employees return would be perfect and result in Nil tax payment.
sunil asked, my HRA is 72 K per annum. I recently bought a home which will be for possession in August 2008. Till march 2008, I would be paying home loan interest of RS 90000. Now Can I claim both HRA and this Interest as deduction from tax on income earned during 2007-2008?
Vikas Gandhi answers, Since you will be getting possesion in August 2008, you cannot claim interest benefit for the year ended 31/03/08. Thus you will be able to claim only HRA deduction.
p asked, i am a professional consultant to a training organization. do i need to pay advance tax?
Vikas Gandhi answers, If your tax liability after considering the tax dedeucted is more than Rs.5,000/-, you do need to pay advance tax.
Chetan asked, Hi, I a working as consultant. My yearly income is 6.00 lakhs/annum. I want open a shares trading account on my wife name and will give her some amount say 50000 as gift for her to invest in shares. Now if any profit comes from that trading will it be counted as my income OR her. can just keep on giving that amount to her every year
Vikas Gandhi answers, In such situation, whatever profit your wife earns will be treated as your income and you will be paying tax on the same.
kitu asked, I am a NRI if i buy stocks from DUBAI am i liable to pay short term capital Gain Tax?
Vikas Gandhi answers, A NRI does not have to pay tax on income which has not been received or accrued in India.
vs2 asked, the government has allowed to issue form-16 with digital signature last year. pl. infm what is that ?? how we can issue ?? what is the procedure ??
Vikas Gandhi answers, Please refer the circular issued by the Government in this regards. It is circular no.2 issued in May 2007 and will be available at www.incometaxindia.gov.in
Rajan asked, Hi, does our government offer any kind of tax exemption for a expenses incurred for the purpose of marriage.
Vikas Gandhi answers, No exemption is available for expenses incurred on marriage.
vhr asked, Hi...i have given a donation of 15k under sec 80 G, can u please tell me how much tax deduction will i get
Vikas Gandhi answers, As per income tax, you cannot donate more than 10% of your total income. Hence you first need to find out what is your total income. Calculate 10% of such income ans compare with the actual amount of donation. The lower of the two amounts will be avilable for deduction @ 50%.
Tushar asked, I am paying rent in Mumbai.I have a house in Pune on which I am paying Home Loan Installments and Interest.Can I claim both as deduction.My rent amount is Rs.9250/= per month.I am getting HRA of Rs.12000/=.My Pune house vacant and i use it in weekend occassionaly.
Vikas Gandhi answers, Yes, you can claim both the deductions.
pratiksha asked, i am a salaried person and also a LIC Agent receiving commission. whether i can claim the deduction as per income tax given 50% on first premium and 15% on renewal commission. showing income from other sources and not income from business and profession
Vikas Gandhi answers, According to me you have to show this income as your business income and not as income from other sources.
milind asked, Can I get benifit in tax if I am paying Premium of my wife
Vikas Gandhi answers, Yes you can claim such benefit.
shabahat asked, sir money earned through futures and options trading in equity market is treated as capital gain or normal bussines income????
Vikas Gandhi answers, Money earned through trading in futures and option has to be treated as business income and not as capital gains.
ravik asked, to claim exemption of housing loan interest, what all documents are required. loan taken in oct 2006, house occupancy cert obtained in Nov 2007
Vikas Gandhi answers, For claiming housing loan interest you need to get a certificate from the concerned bank / financial institution certifying the payment made towards interets and principal loan repayment.
Vikas Gandhi says, That's all for the session friends. Good-bye and have a happy week-end.
Chat with Vikas Gandhi every Thursday at 4 pm
(Due to circumstances beyond our control, date and time of chat may change)