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 an hour-long chat on
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.
gah asked, What is the date for filing return this year?
Vikas Gandhi answers, The last date of filing return is 31st July, 2008
sanjiv asked, Dear Sir, I am living in a house owned by my mother and paying rent to her. If i will buy a house in NCR (far from my office) can i claim both deduction from rent payment and interest on housing loan. thanks and regards
Vikas Gandhi answers, at 2008-05-29 16:00:06You can claim both the deductions, provided the house you own is in a different city and owning to your employment, you have migrated to another city and staying on Rent.
Ajay asked, hello Vikas my brother in us if he trnasfer funds to my account in india will it be taxable if yes what is the limit ? and also tell me it will be automatically deducted by bank once it is credited ?
Vikas Gandhi answers, The transfer of funds by your brother is not your income and hence you are not required to pay any tax on the same.
vinod asked, should we declare mutual fund purchases while filing returns? what is the limuit above which we have to decalre?
Vikas Gandhi answers, If you invest more than Rs 2 lakh in one mutual fund company during the year, you should declare such investment in yoiur income tax return.
sanju asked, hi in last year i earned around 70,000 in options and loss of 10,000 in intraday, i am salary man with form16 avaliable with me, which form should i fill ?
Vikas Gandhi answers, Since you have dealt in intraday transaction, the transaction will be considered as speculative in nature and hence you will have to file return in ITR-4
ram71 asked, is Sell of unlisted company equit share after 3 year capital gain
Vikas Gandhi answers, Yes, profit on sale of shares of Unlisted company is also considered as Capital gain.
rajeev asked, Hello Sir, Good evening. My house is under construction and the registartions has not been done. Completion date is around July May 2009. Do i get a tax rebate for 2008-2009. I have also paid bank installemnt of rs 20 k in month of march 2008. will i get a tax refund for that ?
Vikas Gandhi answers, No. you won't be getting any tax benefits this year. You can start claiming deductions only when the construction is complete and you get the possession of the same. Till that time you can accumulate the interest paid and claim 20% of it in subsequent five years.
Balkrishna asked, hi i have sold a property worth 34 lacs i repaid my homeloan of 17 lacs with this amount,what is my tax liability of this i have already invested 5 lacs in gold and another 5 lacs in stocks please guide what is my tax treatment and liability
Vikas Gandhi answers, You won't be getting any deduction for the amount you repaid or investment you made. The entire profit you made on sale of property would be taxable @ 20%.
ff asked, Hi, I gone through the kidney transplant before 4 years, how do i get the tax reduction for this for current and subsequent years. I am spending around 10000 per month for medical expenses for myself and my mother (she donated her kidney to me). Plz advice me.
Vikas Gandhi answers, Sorry to inform, but there is no provision in Income Tax law for claiming such medical expenditure.
prasadvytla asked, Hi Vikash,is it acceptable in the income tax to file your returns separately,i mean to say 1)returns from agriculture income and rental income 2)income from salary separately
Vikas Gandhi answers, No. Income tax Return has to be filed per person and not per income. Hence you have to file only one return with all the income included.
amit asked, Hi Vikas, I am an NRI living overseas do not have a PAN CARD...I have gifted 100000 RS to my brother-in-law...Is either of us liable for any tax...like gift tax
Vikas Gandhi answers, No. neither of you need to pay any tax in India.
CCCC asked, i have taken personal loan from my employer and it was used for margin amount. i took a resale house from one person and not builder. can i claim the personal loan principal/interest under tax dedcutions for house purpose
Vikas Gandhi answers, No because it will be difficult for you to show the nexus between loan taken and utilisation of the same for purchase of house.
jay asked, what is the last date for filing returns of professional and businessmen.
Vikas Gandhi answers, If the professional or businessmen have to get their books of account audited under Income tax law, the last date of filing is 30th September, else it is 31st July.
JOLKUMAR asked, hi Sir, I am salaried person with no other income source, which form I need to file for AY2008-2009
Vikas Gandhi answers, Since you are having only Salary income, you need to fill ITR-1
vijayakumar asked, Sir, I worked in two companies six months each during the financial year 2007-2008.
There was a shortage in Tax deducted for my total income. I want to know whether I have to pay interest under section 234B and C or not?
Vikas Gandhi answers, Since there was shortage in deduction of tax, you need to pay additional tax. If this additional tax exceeds Rs.5,000/-, only then you will be paying interest u/s 234B & 234C.
VANITA asked, my sister died all alone . she had no family. we are three sisters alive and we got her bank balances and gratuity etc. equally shared amoung three of us. Will the amount so received by us during the year are TAXABLE?
Vikas Gandhi answers, This amount won't be taxable.
Ramesh S asked, Vikas, I have my tax deducted from my salary, but my employer has not paid the tax though he has mentioned it on the salary slip. Let me know if I would face any problems in future.
Vikas Gandhi answers, Of course you would be facing problem Since your employer has not paid the tax deducted from your salary, Department will not be in a position to give you credit for the amount of TDS claimed and hence you will be asked to pay additional tax alongwith interest.
RKM asked, I have not files my returns last year...Can i file it this year along with my current years returns...Will i also need to pay any penalty
Vikas Gandhi answers, Yes you can file your last years return alongwith current years income tax return. The Income Tax Officer may, if he wants levy a penalty of Rs.5000/- for such late filing.
Tuikin asked, Hi Vikas, Whether the interest paid on loan from an individual for purchasing House can be tax exempted?
Vikas Gandhi answers, Yes, you can claim deduciton on account of interest paid for loan taken for purchase of house, even though such loan is taken from an individual.
Bharat asked, I had taken the home loan of 12.5 lacs , & want to take a car loan of about 4 lacs, can I show the EMI for car loan in IT return in any form like any loss?
Vikas Gandhi answers, No you cannot do so. Interest paid on car loan is not a deductible expenses and hence cannot claim loss.
VANITA asked, I have a PAN no. but having a PAn Card. Can i get one without cancelling my existing PAN No.
Vikas Gandhi answers, Don't get your PAN cancelled. YOu can get a new PAN card with current PAN also. Just fill up Request for PAN card form and submit to the relevant authorities and you will get your PAN card.
biju asked, I am an NRI. Can I gift money to my wife? How can I do it officially so that neither of us has to pay tax for it (my income is already tax deducted abroad)?
Vikas Gandhi answers, Gift received by a wife from her husband is not taxed in India.
Ramani asked, Sir, Good evening. If flat in Mumbai is given on L/L for say 10000 pm .The society ischarging 1000 pm the property tax is 4000 pa, maintenance is 900 pm. What is the amount on which IT is to be paid. thank you
Vikas Gandhi answers, From the a
Ramani asked, Sir, Good evening. If flat in Mumbai is given on L/L for say 10000 pm .The society ischarging 1000 pm the property tax is 4000 pa, maintenance is 900 pm. What is the amount on which IT is to be paid. thank you
Vikas Gandhi answers, From the amount of rent you receive, you can deduct the amount of Property tax. From this residual income you get standard deduciton @ 30% and balance amount will be taxable.
panigrahisp asked, please confirm whether i have to pay any tax for the earning of dividend from mutual fund!
Vikas Gandhi answers, No. Dividend from Mutual fund is tax-free.
jkashish asked, Last year my mother have earned 120000 as short term capital gain, Do she need to file return?
Vikas Gandhi answers, If your mother is not having any otner income besides this earning, she is not required to file income tax return as the income is within the exemption limit.
ashok asked, I am selling my small flat in Delhi and I have capital gain of 5 lakhs. I taken loan three years back for a flat in bombay. Can i use this money to repay my loan.
Vikas Gandhi answers, You can use this money to repay your loan. However you won't be getting any tax benefit for such repayment.
Pankajjgarg asked, Sir, whether exemption in repayment of education loan is available on both principal and interest. plz clarify
Vikas Gandhi answers, For Education loan, you get deduction only for the interest component you pay during the year.
Nitn asked, Can We Claim Exemption On HRA If rent is paid to Relaitives or Family Members
Vikas Gandhi answers, You can claim exemption, provided the person to whom you are paying rent is the owner of the flat.
Ravi asked, my basic is 20000 my rent is 12000 my HRA limit is 15000 how much i am taxable?
Vikas Gandhi answers, Assuming that you are staying in Metro cities, Out of Rs.15,000/- HRA, an amount of Rs.5000/- will be taxable in your hands.
shekhar asked, I have give a flat on rent for which the rent is 2Lac Annually,the interest on housing loan paid is Rs 240000. can i carry forward the excess loss of 40000 on hosing property agianst my salary income .
Vikas Gandhi answers, You can adjust such loss against your salary income and if at all the loss remain unadjusted, you can carry forward the same to succeding years and claim set-off.
Vikas Gandhi says, That's all for the day, friends. Chat with you next week.