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 many such readers' queries during a chat on Thursday. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the tax chat session.
Surabhi asked, Hi, I have an income of 3 lakhs form salary and 5 lakhs from business ( commissions from network marketing). How do I file my taxes. When I had only the business income I had a profit and loss statement where I could shoe expenses incurred, whatis the way out now.
Vikas Gandhi answers, at 2008-08-21 15:43:51For filing your income tax return, you can claim expenses against business income of Rs.5 lakhs and pay tax on the net profit. Prepare Profit & Loss account accordingly. Show your salary income under Capital Account, so that there is no confusion between business income and Salary income. You will have to file ITR-4 for filing income tax return.
Prasad asked, Housing loan interest kept upto 1.5L, anyother way we can show the remaining interest paid as tax deductabile
Vikas Gandhi answers, The amount of Rs.1.5 lac is the maximum limit. You cannot claim interest paid as deduction over and above this limit.
gargnanu asked, is the dividend from mutual funds tax free?
Vikas Gandhi answers, Yes, Dividend received from Mutual fund companies are exempt from tax.
vn asked, Hi Vikas, If I sell land and use it to build a house on another plot of mine, will I be liable to Capital Gains ?
Vikas Gandhi answers, Yes, if you intend to use the sale proceeds for construction of a residential house, you will be eligible for exemption from Capital Gain u/s 54F. However in such case you will have to deposit the entire amount in a Capital Gain Account Scheme.
Kabbur asked, Hi vikas i want to know wheather we can reimberse the medical expenses if Yes is there any limit for salary employee
Vikas Gandhi answers, A salaried employee can claim reimbursement of medical expenses from his employer to the extent of Rs.15,000/- per annum, on which no tax will be levied. However reimbursement of medical expenditure depends upon the company policy and salary structure designed.
rajpraj asked, Is there tax exemption for purchase of land ?
Vikas Gandhi answers, There is no tax exemption available for purchase of land
ajit asked, can we convert conveyance exp. as scooter exp. to save FBT?
Vikas Gandhi answers, While determining FBT liability it is not the nomenclature that matters, but it is the nature of expenses that goes to determine whether FBT is liable or not. Hence whether the expenses is named as conveyance expenses or scooter expenses, FBT will be levied as far as the expenses has been used for conveyance.
thatsamit asked, I wish to purse a part time MBA course for which i need to pay 63000/- yearly as my tution fees. Can i get the benifit in income tax for the above said amount?
Vikas Gandhi answers, Tuition fees paid for children is eligible for deduction. Unfortunately tuition fees for education of self is not deductible and hence you will not be able to claim such deduction.
pradeep asked, house wife having agricultural income of about 50 to 60 thousand a year besides rental income of Rs. 24,000/- pa does she have file a return if so the ITR No. does the exemption of 145000/- not apply to her what king of other exemptions is she eligable
Vikas Gandhi answers, Since the taxable income of your wife is only Rs.24,000/- p.a., she is not required to file