The time to file your tax returns is here. This is the time when you ponder over the tax you paid and the investments you made.
Were you prudent with your investments last year? Did they help you save tax? Or did you end up paying more than you could afford? 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 readers' queries. Here is the transcript:
Vikas Gandhi says, Good afternoon friends and welcome to this session of chat session relating to tax. It is the season to prepare and file your return of income. I will be happy to answer your questions relating to income tax and online filing of returns
Nayan asked, I want to know how much can a person invest to save taxes, my total salary is 7 lakh per annum, what is the max that I can invest to save taxes. Is it possible to evade tax completely.
Vikas Gandhi answers, To save taxes a person can invest up to Rs 1,00,000 per annum, in various schemes such as Insurance premiums, PPF, NSC, Pension plan. This amount also includes education fees for your children. In addition to this you can opt for paying medical premium to the extent of Rs 10,000 and get an additional exemption of that amount. You cannot evade taxes, but you can plan your income and investment in such a manner, so that tax implication is less
mm asked, Hello, I have recently received my Form-16 from my employer. But I found that my PAN number was wrong on the form-16. I informed the company about the same & they are going to issue me a new Form-16. What my concern is about the TDS, which company has deducted during the entire year. Doesn't the company quote PAN number of the employee while depositing TDS amount with the IT department? If so, the company would have quoted wrong PAN while depositing the TDS amount. In this circumstances what should I do?
Vikas Gandhi answers, In this case you need not do anything. You were supposed to inform your employer and you have done that. What has to be done now is by your employer. If your employer has already filed TDS returns, for all the four quarters of the year, he will have to revise all the returns, wherein your wrong PAN was mentioned. You can go ahead with the new Form No.16 given to you by your employer.
sangram asked, Is there any time limit of getting back IT Returns ? I Have filled IT returns for 2005-06 but still haven't received any money
Vikas Gandhi answers, In normal circumstances, if there is no defect or shortcomings in the income tax return you filed, you should get your refund back within a year. What you can do is wait for a month or so. then too if you don't get your refund, you will have to contact your Income Tax Officer and inform him about the non-receipt of refund
sumit asked, I was wondering if the rent I am receiving for let out flat is taxable or not
Vikas Gandhi answers, Yes. it is your income and hence it is taxable. If you are owning the flat that you have rented, then such income will be taxed under the head "Income from House Property" and if you have taken the property on rent and then further rented out, then the rent income will be taxed under Income from Other Source.
shr asked, Hi! Can u please tell me the tax implications/rules for the interest earned on Fixed Deposits? Thanks.
Vikas Gandhi answers, The entire interest earned on fixed deposits (whether with bank or company) is taxable. there is no exemption available on such interest. However if any tax has been deducted on such interest, then you can claim deduction of such tax amount from your tax calculated.
anantha asked, Hello Sir, Hope you are doing good. Is there way where I can have control of my I.Tax rather my company deducting through TDS
Vikas Gandhi answers, I assume you are receiving Salary income and tax is being deducted on this salary by your employer. As far as controlling your Income tax is concerned, it is actually under your control only. The employer is deducting tax from your Salary on the basis of your salary structure and declaration as regards other income and investments given by you. Your employer is not assuming your income and deducting your tax. It is the responsibility of your employer to deduct tax from your salary income and if he/she does not do so, he will be liable for penalty. At the most what you can do is not declare your income other than salary income and you individually pay taxes on such income. However in such case you may be liable for paying interest in addition to income tax.
Abhijit asked, Can I fill my Income Tax Return online now? I am outside India currently so if this is possible, it would be immensely useful. Please confirm.
Vikas Gandhi answers, Yes, from this year onwards filing tax returns online has been made available to all the categories of the tax-payers and hence you can file your return online. For further information in this regards you can visit
taxsmile.com, where you can prepare and file tax returns online.
nikku asked, sir do we have to give details of each & every credit dates on which the interest in credited for the purpose of TDS in new Form ITR 1 even if there are 40 such entries, where is the space in the form
Vikas Gandhi answers, Yes, you do have to mention all the dates. If the data is multiple, you will have to prepare an annexure in the similar format and attach with the return of income.
ff asked, I want to know how to get the maximum tax benefit out of home loan?
Vikas Gandhi answers, To get maximum benefit of home loans, you can bifurcate your principal and interest portion in such a manner that interest component totals up to Rs 150,000 and balance is covered in the principal amount. With investments in other savings instruments, your principal amount cannot exceed Rs 100,000.
PREM asked, how do I do online filing for IT
Vikas Gandhi answers, For filing tax returns online, you first need to prepare your income tax return in the electronic format (XML format) acceptable by the Income Tax Department. For this you have following options -- a) Either download utility available at
www.incometaxindiaefling.gov.in; b) Use online software available which computes and also generates XML format. You can visit
www.taxsmile.comvertise_div_1">