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?
In a chat on
rediff.com on Thursday,
direct tax expert Vikas 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.
rajatmehta asked, Dear Mr. Gandhi Our partnership firm came into existence in FY 2007-08. Except for partners contribution (approx. 1 crore) into the firm's bank account and its utilization to acquire shares in a new company no expenditure (except petty expenses) or income has accrued in FY 2007-08 to the firm. Do we need to get the partnership accounts audited by a CA even though there is no turnover though the capital contribution is significant? The partners are regular assesses and no income has been received by them from the firm. Many Thanks Rajat Mehta
Vikas Gandhi answers, at 2008-09-11 15:39:54A partnership firm is required to get its books of account audited only if the turnover for the year exceeds Rs.40 lakh. If the firm is engaged in profession, the limit is 10 lakhs. From your query it is understood that there has been no income for the firm and hence you are not required to get your books audited under Income Tax law.
jatin asked, i am salary person & have home loan which form can i used? because some person told me you can used ITR-1,is it right?
Vikas Gandhi answers, Since you are having housing loan and claiming housing loan interest, you have to file return in ITR-2 and not ITR-1.
bp asked, Sir, are the dividend payouts received through direct investment in equities taxable?
Vikas Gandhi answers, No. Dividend received is totally exempt from tax.
bp asked, I am salaried. This financial year I have invested in mutual funds & shares with a long term perspective (3-5 years). Which ITR form should be applicable?
Vikas Gandhi answers, The selction of ITR is based on the nature of income you earned during the year. It does not depend upon the investment you made. Thus if you are having only Salary income, you have to file your return in ITR-1.
bp asked, If I apply for a home loan towards purchase of flat which is under construction & expect to get posession not before end 2010. My EMi wil start fom next month. Will I get IT benefit for the home loan interest? Can I claim HRA as well since till such time I get possesion of the flat, I need to pay rent on my current accomodation?
Vikas Gandhi answers, Since you will be getting the possession of your flat in 2010, currently you are not the owner of the flat and hence currently you cannot claim benefit for housing loan interest. However you can accumulate such interest amount and claim 20% in each five consecutive year from the year you get the possession. Currently you can claim HRA benefit.
piyal asked, Dear Vikas, If my bank refuses to give me a form-16A on the FDs , what should I do?Is it possible to pay my taxes without that? I have the Interest amount paid to me from my savings account statement. I also know how much TDS they deducted .But how to convince the tax people? Please help me to pay my Income tax.
Vikas Gandhi answers, Although you have the details of interest received and tax deducted, the information is insufficient from the tax return perspective. With the data available, you can calculate your tax liability, but the Department will not be able to give you the tax credit unless and until you provide other details like TAN, Date of payment, tax payment details by the bank. HEnce it is necessary for you to get Form No.16A from your bank.
ganesh asked, sir, I am the