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 replied to readers' queries in an hour-long chat on
rediff.com. Here is the transcript:
Vikas Gandhi says, Good evening and welcome to the tax chat session
Ashish asked, My package is 3.8 lacs per annum. I have given a declaration to the company tht i will be investing 1 lac (LIC,MF etc...) and 15K as Medical. Even after this investment ,they deduct 600-800 ass income tax per month. How can i save the money which they are deducting for income tax?
Vikas Gandhi answers, at 2007-10-04 15:58:09According to me you are already availing the exemption kitty you are entitled to by the Income tax Act and hence there is no further scope. Besides saving taxes you will also have to consider your day to day expenses. Hence according no further planning is required.
Taxpayer asked, What's the GIFT tax implication for both the donor (Father-in-law) and the donee (son-in-law) if the amount of gift is Rs. 12 Lakhs ? Son-in-law falls in the highest tax bracket right now.
Vikas Gandhi answers, If a person is receiving gift from a relative than there is no tax on such gift, irrespective of the amount gifted. Gift received from father-in-law falls within the definition of "relatives" and hence there would be no tax implication on the gift received. However since the gift amount is high, creditworthiness and capability of your father-in-law for such gift may be questioned by the Income Tax Officer.
subramanian asked, i have a property worth 23 lakhs. i intend buying another for 30lakhs,which i intend using as self-occupied. i am aware that i should pay wealth tax on 23lakhs property. my slab is 30 percent. what exactly is the quantum of wealth taxpayable . thanks and best regards
Vikas Gandhi answers, Wealth tax is exempt upto Rs.1500000/-. Any excess wealth will attract tax @1% of the net wealth. This rate is irrespective of the slab rate of income tax in which you fall.
sparshganju asked, Hello Mr. Vikas, I have two queries regarding 'Income from House Property'in calculation of Income tax. 1) For self-occupied property, is the maximum limit of 1.5 lakhs (or 30000) for interest paid on housing loan dependent on the date of construction of property (date of issue of occupancy certificate by the municipal authorities) OR the date of availing loan. e.g. If I buy a 20-year old property in this year by availing housing loan, how much maximum deduction is admissible to me? 2) For let-out property, is there a limit on the housing loan interest which can be claimed for deduction? I am told it is subject to the maximum of the annual value of the property. Is it correct?
Vikas Gandhi answers, For self occupied property the maximum amount of interest that can be claimed is Rs.30,000/-. However if the home loan is taken after 01/04/1999 and the possession or construciton of house is completed within 3 years of availing loan, then the maximum amount of interest claim increases to Rs.1,50,000/-. As far as let-out property is considered there is no such limit for interest. the entire amount of interest can be claimed against the rent income.
mukesh asked, what to do after getting a secunity notice from I T DEPTT
Vikas Gandhi answers, On getting a scrutiny notice from the I.T.Department, you need to visit the Officer on the appointed date and time. If he has mentioned any particular documents for verification, you need to carry them alongwith you when you make a visit to him. He will guide you subsequently what additional details he requires to complete the assessment of your income tax return.
bpg asked, Ipurchased a property in the name of my wife for 22 L and sold another property in my mame with Long term capital gain of 20 L in this financial year .Can th eCapital gain be off set by the value of the property purchased in my wife's name
Vikas Gandhi answers, Since the property is purchased in the name of your wife, you won't be able to claim the exemption of such property while calculating your capital gains on sale of property.
kanna asked, Hi I have a salary credit account with a bank. However that account is a joint account with my wife who is a housewife. My question is if she invests in shares or in MF, which has any short term capital gain axes, how to pay that. She has to submit seperate IR returns or jointly with my IT returns? She has to pay the tax even if her short term capital gain taxes for one financial year is below the taxable income (standard detection of 1.45 lakh)?
Vikas Gandhi answers, Your wife will have to file aseparate income tax return for the capital gains earned by her. However if her total taxable income including the capital gains is below the taxable limit then she does not have to pay any tax.
Bigheart asked, Hi, I am an NRI since April 2006; Do I need to have a NRE A/C to file retruns in India.
Vikas Gandhi answers, This is not a necessity for filing your tax returns.
deepak asked, Hi, can please let me know whether recurring deposit income is tax-free or not?
Vikas Gandhi answers, Income from recurring deposit is not tax free
kanna asked, If I save more than 1 lakh in tax savings investmens, then is it possible to carry forward this excess amount to next financial year?
Vikas Gandhi answers, You cannot carry forward such excess investments. There is no such facility in Income Tax at present.
jeet asked, Hello
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