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 spoke to readers during an hour-long chat on rediff.com on Thursday. Here is the transcript:
Vikas Gandhi says, Wish you all a happy new year. Good evening friends and welcome back to the tax chat session.
sanjay asked, Can i avail home loan princ. and interest benefit if i rent that house and stay in rented house in same city and avail HRA benefit also
Vikas Gandhi answers, at 2008-01-03 15:55:52 YOu can certainly get home loan principal and interest benefit for the house which you have given on rent. However if you give your own house on rent and stay in a rented house in the same city, according to me you won't be eligible for HRA benefit. In my view the dual deduction is available only in the situation where you have to stay out of the city on account of your job.
sid asked, Whether profit from mutual fund if invested for 3+ years is exepmted from i.t. and also profit in shares for more than one year is it exempted too?
Vikas Gandhi answers, The period of holding is more than 1 year for mutual fund to become Long Term capital asset. In such a situation only equity oriented units of mutual fund will be exempt provided it fulfills following conditions- a) The units are sold in open market b) You have paid Securities transaction tax on sale of such units. Similar conditions apply for shares also for getting such exemption.
rohit asked, Hello SIR, I just want to know that how much HRA can be exempted from TAX...please reply
Vikas Gandhi answers, For knowing how much of HRA is exempt from tax, you need to first find following three values - a) Actual HRA received b) 50% of (Basic Salary + Dearness Allowance) -- if house is situated in Mumbai, Delhi, Kolkatta & Chennai, else 40%. c) Rent paid - 10% of (Basic Salary + Dearness Allowance) Once this three amounts are known, the least of the three amount is exempt from tax.
nikhil asked, I AM SALREID PERSON WITH ANNUAL INCOME OF 4 LAC. WHAT IS THE I/TAX I NEED TO PAY HOW MUCH IS THE TAX ON EQUITY SHARES BOUGHT AND SOLD WITHIN ONE YEAR ? REGARDS NIKHIL THAKKAR
Vikas Gandhi answers, On a taxable salary of Rs.4 lacs, you will have to pay an approx tax of Rs.71,000/- including education cess. As regards sale of shares within one year of its purchase you have to pay tax @10% on the profit, provided you have paid securities transaction tax on sale
jack asked, Hello Sir, Can i avail tax concession for the amount spend for my wife's education.
Vikas Gandhi answers, NO. you cannot claim any concession for the amount spend for your wife education.
KUMAR asked, Can we claim last years Investment for tax saving,if the same i have not claim last year?
Vikas Gandhi answers, You can claim only current years tax saving investments for the current year income tax. Such brought forward provisions are not available in Indian tax laws.
lb asked, I have a flat in joint name with my husband. I want to give my flat on rent. Can I take the rent cheque in my husband's name to avoid tax
Vikas Gandhi answers, In my view, since you are the first owner of the house, the rent income will be taxed in your hands and cannot be considered as your husbands income even if you take cheque in the name of your husband.
Sdevi asked, Dear sir, i am a house wife and have no income recently i bought some shares and sold it within one year to make a profit of 20000 rs, i want to know how to pay the capital gain tax, my total income for the year is only this profit. which form to fill to pay capital gain tax and where to submit regards Sdevi
Vikas Gandhi answers, Your total income is only Rs.20000/- which is well within the exemption limit and hence you are not require to pay any tax. Further you are also not required to file your returns for the year as the income is below the taxable limit. Any income earned by you upto Rs.1,45,000/- will be tax-free.
TARUN asked, IAM A SALARIED EMPLOYEES & HOUSE IS IN MAE OF MY FATHER IF I WILL PAY RENT TO MY FATHER .IS THEIR ANY PROVISON UNDER WHCIH I WILL RELIEF SIR
Vikas Gandhi answers, In my view you can pay rent to your father and claim exemption from HRA. However see to it that you pay rent by cheque to your father and get a rent receipt for the same.
Suresh asked, I am in job at delhi & receiving HRA but my family residing at Udaipur (Raj). They are paying rent there more than me. Can i claim HRA for Udaipur. Thanks
Vikas Gandhi answers, No. since you are working in Delhi, you can claim HRA exmeption on rent paid for Delhi property and not for Udaipur property.
dinesh asked, Hello Sir, If i girt some money to my sister is there any
tax benifit to me.