The time has come to file your tax returns. 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?
Direct tax expert
Vikas M Gandhi answered these queries during an hour-long chat on Thursday. Here's the transcript:
Vikas Gandhi says, Good evening friends and welcome to this tax chat session. You can start asking your queries and I'll be happy to resolve the same
Santoshu asked, Bank has provided me form 16A for TDS. Do I have to pay more than that or just add this amount in IT for calculation
Vikas Gandhi answers, The rate at which tax has been deducted by Bank is @ 10%. However maximum tax slab rate for individuals is 30%. Hence it will depend upon your total income as to under which tax bracket you fall. Hence to know the exact tax liability, you will first have to add the interest amount (gross) to your income and then only you will be able to know about your tax liability
Saurabh asked, I am a salaried person with interest income. I have made donations which are eligible for exemption u/s 80G. Which form should I use for the returrn? The interest in NSCs/ cumulative fixed deposits should be accounted for IT purposes based on accrual or based on actual receipt?
Vikas Gandhi answers, Since your source of income is only from Salary and interest, ITR-1 will be applicable to you. It does not matter under which section you are claiming deduction. It is always better to account for interest on accrual basis as by doing this you'll be able to spread your tax liability over a period of years.
Keshav asked, Is PPF amount which we get after 15yrs taxable if i am in higher bracket?
Vikas Gandhi answers, No. the entire PPF amount you receive on maturity is exempt from tax.
promod asked, Dear Vikas, what is the last date of filing income tax returns for individuals, salaried persons? If I have 'other income' -- on which I have already paid capital gains tax -- which ITR form will I have to fill?
Vikas Gandhi answers, The last date of filing income tax return for individuals, salaried person is 31st July, 2007. Since you have capital gains, you'll have to fill ITR-2 (assumed that you do not have any business income)
Harsh asked, I am salaried employee with no other source of Income. I have taken a homeloan. Where do I claim deduction of interest on Home loan? ITR-1 doesnot have such a column.
Vikas Gandhi answers, You are referring to a wrong ITR form. ITR-1 is applicable only if you are receiving Salary and interest income. However since you are paying interest on home loan, you'll have to fill ITR-2.
virendra asked, I am salaried person, for the last year I was not taxable, If I file IT Return now should I be charged U/s 236A
Vikas Gandhi answers, At first the question is not very clear. However I assume that you now want to file your last years return. If it is the case, since you have mentioned that there was no tyax liability, you will not be charged interest u/s 234A (not 236A)
Rajiv asked, Is TDS deducted from Rent? If yes how much and is there any limit beyond which it is deducted?
Vikas Gandhi answers, TDS on Rent is deductible only if the amount of Rent exceeds Rs.1,20,000/- per annum
Rajiv asked, What is the limit and slab of Wealth Tax
Vikas Gandhi answers, Wealth Tax is applicable if your net wealth exceeds Rs.15,00,000/-. If it exceeds, wealth tax is charged @1% on the wealth above Rs.15,00,000/-.
Rajiv asked, For calculating Income from House Property, if Actual Rent is more than Standard Rent, Fair Rent etc., is Actual Rent considered or such lower one.
Vikas Gandhi answers, For calculating House Property, if actual rent is more than Standard Rent, Fair Rent, actual rent will be considered for the tax purpose.
Ravi asked, How to fill the income tax if one is absent during this period ??? Who can do it for me in my absence ???
Vikas Gandhi answers, For your query you can visit our site at www.taxsmile.com, which helps you in calculating and preparing return online. Government has already initiated e-filing and hence no matter wher you are, you can still file return in time
Ehsaas asked, In ITR-4 form , I am told that one needs to declare all his investments in FD's, Cash in Banks, etc etc. Is that true ? Why should one declare his investments ??
Vikas Gandhi answers, You have somke worng information. It is not that you have to declare all your investments in FD's casg in banks etc in ITR-4. It is only if you have entered into certain transactions, which exceeds the limit mentioned you need to provide the information. For further information in this regards you can refer the instrrcution