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 there 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?
In online chat with
rediff.com on Thursday, direct tax expert
Vikas M Gandhi replied to many such readers' queries. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the Tax chat session.
JitendraC asked, Hi Vikas,for salaried person we have to fill ITR1 form.For total taxable income, home loan interest is get deducted from head of salries column and Taxable income will get retrived, but I did not seen any provision for mentioning the Home loan interest and Principal on ITR1. How should I fill it?
Vikas Gandhi answers, at 2008-06-12 15:59:02Salaried person do have to file ITR-1, but only in the case when the person has only salary income and interest income. In case the person has any income other than salary and interest, he will have to file ITR-2 and not ITR-1. Hence in your case since you are paying interest on housing loan, you will have to fill ITR-2.
kabita5 asked, Hi Vikas, please let me know the last date of filling return for year 2007-2008 incase if once fails to file it by July 31st,2008. Thanks
Vikas Gandhi answers, The last date of filing income tax return for F.Y.2007-2008 is 31st July, 2008. If you fail to file return by 31st July, you can file return subsequently also till 31st March, 2009. In such a case, the consequence will be as under- a) If your tax calculation result in additional tax payment, you will have to pay addiitonal interest @1% per month for late filing of return. b) If your tax calcuation results in refund, any interest on refund will be calculated from the date of filing return which would otherwise have been calculated from 01/04/2008. If you file return after 31/03/2009, in addition to above you might be penalised upto Rs.5,000/-
Tushar asked, I have my PAN of Mumbai.Till last year due to my employment in Pune I was filling my return in Pune. Now I have shifted back to Mumbai and having my employment in Mumbai only since November 2007.Please advice me as to where should I file my return.
Vikas Gandhi answers, For the F.Y.2007-2008, you will have to file your return at Pune. Alongwith this return you will also have to file a letter to the Assessing Officer asking him to transfer your case to Mumbai, owing to your employment at Mumbai. With this procedure you will be able to file your return at Mumbai next year.
Rajeev asked, What is the maximum excemption limit 100000 or 120000.
Vikas Gandhi answers, For the F.Y.2007-2008, the basic exemption limit is neither 1,00,000/- nor 1,20,000/-. The limit is Rs.1,10,000/-.
shashi asked, dear sir i am govt teacher and i got arrears (remaining salaries )at the last of march and my tax was deducted .i want to know that if i have paid LIC of my unemployed husband can i get rebate under section 80 c on the savings in the name of my unemployed husband
Vikas Gandhi answers, If you have paid insurance premium for your husband out of your income, you will be able to claim deduction for such premium payment u/s 80C.
Anupaam asked, Hi I have bought a house this feb 07 .Can I claim deductions for the home loan[interest ] next year without staying in the house its too far from where I wpork I will not be giving it on rent.
Vikas Gandhi answers, By too far, if you mean in a different city or state altogether, than you can claim benefit of home loan repayment.
Samir asked, After doing my self assessment i found out that i have to pay RS 843 in Tax. Can you let me know the form no(Challan) which i shud use to pay the same?
Vikas Gandhi answers, You can make this tax payment either online or offline. For making the tax payment you have to fill ITNS-280.
Kumar asked, Good afternoon Vikas, I am salaried employee. Till last year i filed my returns in Bangalore as I was working there. I have moved to Hyderabad now. I have two form 16 as I worked for two companies during FY07-08. Could you please let me know where to file my returns now for AY 08-09. Any precautions needed to file the same.
Vikas Gandhi answers, A salaried individual is required to file his income tax return in the city where is employment is situated. Since you are currently employed at Hyderabad, you are required to file return at Hyderabad. However if you have filed return last year at Bangalore, you should file return at Bangalore this year alongwith a request letter to transfer your case to Hyderabad.
JIGAR asked, DEAR MR. GANDHI, I M SALARIED PERSON, I HAVE FILED MY LAST YEAR IT BY MY SELF ONLY - ITR1, JUST WANT TO KNOW THAT CAN I HAVE TO MENTION INTEREST INCOME FROM SAVING ACCOUNT AND UNDER WHICH HEAD AND I AM ALSO INVESTING IN MUTUAL FUND SO WHICH FORM I HAVE TO FILE ITR1 OR 2.
Vikas Gandhi answers, You should mention your interest on savings account. It is your income. this interest amount has to be mentioned under Income from Other Sources -
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