'Can my tax filing mistakes be corrected?'

Do you have any personal income tax query?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Please mail your queries at getahead@rediff.co.in with the subject line Ask Mihir.

Somaskandan Hariharan: I request you to clarify the following point.

I am having a housing loan with an outstanding principal amount of Rs 10 lakh (The flat where I am presently residing. Housing loan was taken during the year 2017). I got capital gain by means of sale of other flat to the tune of around Rs 80 lakh. By repaying the outstanding housing loan of Rs 10 lakh can I save myself from paying capital gains tax?

Mihir Tanna: Repayment of housing loan is allowed as deduction in two parts. First repayment of principal can be claimed u/s 80C (up to 1.5 lakh) and second payment of interest which can be claimed as deduction. Interest deduction is allowed subject to certain limits depending on the fact that house property is used for self-occupation or given on rent.

In addition to that you can save tax on capital gain by investing in another house property or you can acquire specified bonds, if you fulfill other specified conditions.

Bhalwant Singh Raju: Re. Revision in Form 67 for AY 2019-20 & AY 2020-21 and submission of request for Rectification. Erroneously, I have claimed the Tax Relief under section 91, instead of section 90/90A Under DTAA with Canada, which naturally have not been given by IT Dept and Assessment carried out under 143(1).
It is a plain typographical error on my part.

Can the error be corrected by revising Form 67 and submitted with a Rectification request to IT Dept? Please suggest a way out.

Mihir Tanna: Mistake which is apparent from the records can be rectified by Income Tax Department and mistake which requires debate, elaboration, investigation, etc. cannot be rectified. Accordingly, if you can specify in the application that section 91 of Income Tax Act 1961 provides for Unilateral Relief which states that when there is no DTAA between two countries, you have certain income (which is doubly taxed) from Canada with whom India has signed DTAA and section 91 is not applicable in your case. Accordingly, you can request to assessing officer that inadvertently while filing Form 67, you have selected wrong section, as it is mistake apparent from the records, kindly consider revised Form 67 and pass rectification order u/s 154 of the income tax act.

Sadruddin Khoja: I am a retired govt. servant and get pension. Also I get Interest from Deposits, Saving and Acc. Int. I show this income in my Income Tax returns filed in Form ITR-1 SAHAJ. During the current Financial Year I have received the maturity amount of my PPF maintained in the Post Office. Out of the amount received I have a certain amount given as a gift to my spouse. She has invested the said amount received by her from me as a gift in the SCSS A/C and gets interest on that amount.

I want to know whether the amount she receives as interest from the amount given by me is to be included in my income and to be shown in the Income Tax Return. If so, at what place i.e. in which column?

I have to show the income so included as I do not see such places or column. In which I have to indicate this amount Sr. No. B3 Income from Other Sources along with the Interest received by me from Deposit etc.

Since the amount of interest received by my spouse is included in my Income, Whether the said amount is also to be shown in her Income Tax Return or otherwise? As if it is to be shown in her return also then there will be duplication.

This clarification is sought as I file my return myself and since the notice I or my wife may not get. I hope you will kindly guide me in this regard and oblige us.

Thank you in advance.

Mihir Tanna: If taxpayer directly or indirectly transfers an asset to spouse for inadequate consideration than Income from such asset is clubbed in the hands of the transferor. Transferor (taxpayer) should show such income in Schedule SPI of Income Tax Return filed by such tax payer in whose hands income is clubbed. No need to show said income in the income tax return of spouse. 

Read more of Mihir Tanna's responses here.

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