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 an hour-long chat on
rediff.com on Thursday, direct tax expert
Vikas M Gandhi offered many valuable tips. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the tax chat session
Middleclassman asked, Sir. I am a middle class person. I am having housing loan and i am taking benefit of interest payment. Now in my salary package, there is component of HRA also. Can i claim HRA also by producing rent receipts? My accounts people are not accepting that. Pls advise pls.
Vikas Gandhi answers, at 2009-01-15 15:15:22Since you are already owning a house which has been taken on loan, you are already enjoying tax benefits for loan repayment. in such a event you will not be able to claim additional benefit on account of HRA, provided both the houses are distantly situated and it is not possible for you travel to and fro on day to day basis.
Jimit asked, Hi, I have claimed LTA Nov-08. Am I eligible to claim it this year ?
Vikas Gandhi answers, LTA can be claimed twice in a block of 4 years. Currently 4 year block is from 1/1/2006 to 31/12/2009. Within this 4 years you will be able to claim the benefit twice. If you have claimed LTA benefit for the first time in Nov-2008, you will be able to claim another benefit in this year also.
RG asked, Hello Vikas, is it true that In February, an issue of tax Savings Infrastructure Bonds is planned where rebate would be allowed under 80 C over and above present ceiling of 1 lac ?
Vikas Gandhi answers, As per the current tax law, you cannot get any additional benefit for investment in Tax saving infrastructure bonds over and able the limit of Rs.1,00,000/- mentioned in section 80C. If at all such bonds are planned in February, it will be within the limit specified in section 80C.
Boli asked, Sir, Whether an amount of money received by a salaried individual from an another individual through cheque in his savings account is taxable in every circumstance ?
Vikas Gandhi answers, The answer to your quesiton depends upon the nature of deposit. If you have received the amount from another individual in the nature of loan, nothing will be taxable as you are going to repay the same. If you have received it as a gift, it needs to find out the occassion or relation with the person and accordingly the taxation will be decided. There can be other scenarios also and hence it is difficult to answer your question accurately.
Rahul asked, Hello Sir, Whether interest accrued on KVP is counted as income ?
Vikas Gandhi answers, Interest received or accrued on Kisan Vikas Patra is taxable.
Ashish asked, Hello Vikas, My Landlord refuses to give me rent receipts and takes the monthly rent by cash only. I only have the rental agreement which mentions the monthly rent. Is there any way to get the HRA benefit in my scenario?
Vikas Gandhi answers, Since you are paying monthly rent, you should be getting the benefit of HRA. However to substantiate your claim you will require Rent receipt. The onus is on you to get the receipt. The agreement will help but it won't stand as a proof of rent having been paid. To substante rent payment, rent receipt is necessary.
nnm asked, i have PPF account at postoffice where i last paid 2007 sept after that i dint deposit any money in it will my account exist or what are the steps to take care
Vikas Gandhi answers, In my view, to keep the account running, you have to deposit a minimum amount of Rs.500/- in the PPF account. Since you have last deposited in Sept-2007, you still have time to deposit till 31st March.
vs asked, Hi Tax Saver, I am currently working from PUNE, My home town is Hyderabad.I am earning 40k per month. I am planning to take home loan and wanted to save complete tax. I am planning to buy a home in Hyderabad(my parents are going to stay in that home - dependant). I am currently staying in PUNE or rent basis. can I claim both home loan exemption and HRA rent exemption from IT..?
Vikas Gandhi answers, Given the situation,