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 back to tax chat session.
dbdelhi asked, sir if i did'nt fill return yet & want to start filling return what i have to do & i do'nt have any correct record of my past & trade in shares also & holding mutual funds & shares how can i tart from now
Vikas Gandhi answers, at 2007-09-20 15:59:21At the outset if your gross total income is exceeding the exemption limit than you need to file your income tax returns. So assuming that you fall under tax bracket, you will first have to gather all your income and investment information. The best way to start with is prepare a summary of your bank account transaction, classify them into categories of income and investment made. Do this excercise of atleast last 3 financial years. Once this is done consult a tax practitioner who will help you finalise your income tax return.
R asked, Hello, Myself & my hubby are co-owner of house & co-applicant of house loan, Can we claim interest of 1.5 lac each(total 3 lac) if our actual interest is 3.5 lac?
Vikas Gandhi answers, Yes, both of you can claim deduction of interest from your total income, provided both are financing the house and both ar co-owners of the house as mentioned in the question. If you are maintaining books of account, both will have to show the property as 1/2 share in Residential property.
yogesh asked, CAN I OFFSET MY SHORT TERM EQUITY LOSS AGAINST DERIVATIVES INCOME?
Vikas Gandhi answers, Short Term Capital Loss can be set-off only against Short Term Capital Gain or Long Term Capital Gain. Income from Deriviatives is not considered as Capital Gain and hence you will not be able to set-off your short term loss against this income.
pooja asked, CAN U TELL ME I SHOULD BUT MUTAL FUND OR SHARE
Vikas Gandhi answers, Gievn an option of buying shares or mutual fund, according to me you should go for mutual fund. By investing in mutual fund your risks get divided in various companies and hence loss if any incurred is minimum.
raju asked, My Salary is Rs.1.76 lac per annum. kindly let me know the tax liability and how to save tax if any. your advice pl raju
Vikas Gandhi answers, On a net taxable income of Rs.1.76 lacs you will have to pay a tax of Rs.9,476/-. In order to reduce your tax liability you can invest in either PPF A/c or purchase NSC from post office. You can also go for fixed deposit with scheduled banks for minimum period of 5 years. Since income upto Rs.1.10 lacs is exempt for the current year, you should not invest more than Rs.66000/-. However so consider your household withdrawals before investing the entire 66000/-.
charan asked, my wife is earning approx 3.6 lac PA as a salary...she is having just 1 lac of LIC.every month they are deducting 4000 as a TDS.Sugest me how to save...
Vikas Gandhi answers, Since your wife has already invested Rs.1 lac in LIC, she has exhausted the deduction availabel u/s 80C. No more deduction can be claimed by her. In order to further save the taxes, she can contact her employer and see if any changes can be made in the salary structure which would result in lower tax liability. Normally this is done by increasing allowances and reimbursements in the CTC component. Beyond this nothing else can be suggested or sone.
aks asked, Hi I have recently switched jobs so can I show i ex-employer a medical bill of 5000/- and my current employer a medical bills of 15000/-.
Vikas Gandhi answers, No. Reimbursement of medical expenditure is restricted to Rs.15,000/- per tax payer per year. Hence irrespective of the number of employers, you cannot claim exemption on account of medical reimbursement in excess of Rs.15,000/-
Hemant asked, Hi Vikas, My Company Deduct TDS and I have filed my return, By what time I will get my extra charged money back and Is their any way to check your file return status online?
Vikas Gandhi answers, There is no statutory limit for issue of refund and hence nothing can be said about it. You just have to wait and watch. However if the refund is long due, you can contact your Income Tax Officer and request for early issue of refund. As far cheecking your return status online is concerned, it can be done only if you have filed your return electronically. Here also you will just know whether the return is filed or not and on which date the same is filed.
ashu asked, i am working in an mnc ,my sal is 4 lacs per annum,where i have to invest for saving the taxes.
Vikas Gandhi answers, YOu can reduce your taxable income by Rs.1.0 lac by investing in any of the following - a) LIC Premium (Self, spouse, children) b) PPF c) NSC d) Fixed Deposit with Bank (min 5 years) e) ELSS You can go with a mix of all or any of the above categories.
Suraj asked, Mr.Gandhi, Good afternoon, I am employed, i want to reduce my tax burden. I want avail a loan to purchase a Plot to construct house . Can I get IT benifit on this loan? Pl. explain.
Vikas Gandhi answers, Loan taken for purchase of plot of land will not be able for tax exemption. Loan taken for construction of residential house qualifies for exemption. Further interest paid on loan during the construction period will have to be accumulated and will be able to claim the same in 5 equal instalments once