In an hour-long chat on
rediff.com on Thursday, tax expert Vikas Gandhi responded to readers' queries on tax and investment. Here is the transcript:
Vikas. Gandhi says, Good evening friends and welcome to Tax chat session.
nairs asked, Hello Sir, I am salaried person - all taxes paid and no refunds expected. Even though I have a home loan, I unknowingly filed my returns in ITR1. In the gross salary column I had entered (salary-home_loan_interest). Would that be a problem? Would I have to necessarily file revised returns in ITR2 again or it would be okay if I didnt?
Vikas. Gandhi answers, at 2007-08-02 15:57:51According to me, you should file a revised return in ITR-2 and show correct particulars of your income.
amit asked, I got some company shares in ESOP 3 years back, but the company got listed (IPO) only about 8 months back. I have sold those shares after listing - 3 months after listing , but 2.5 years after I got those shares. Would i be required to pay tax on the profits I got from selling the shares?
Vikas. Gandhi answers, Since you have held shares for more than 1 year and assuming that you have sold the shares in open market and paid Securities Transasction Tax on the same, the profit will be termed as Long Term Capital Gain and the same will be exempt from tax, on the basis of above assumption.
vijay asked, Hi sir. We ( co-borrower) have purchased a flat by taking home loan in the year 2006, and one of my friend informed, for the year 2007 to 2008 tax rule 26 under section 24B can avail tax benifts upto 1.5 lakh each person. Eg. both 3lakh. is it true? if this such i can inform by accounts dept. pls advise
Vikas. Gandhi answers, If both the co-owners are contributing to the home loan in equal proportion, both the co-owner can individually claim the deduction of Rs.150,000/- u/s 24.
hemant asked, In housing loan if i pay more than EMI during 07-08, whether it will be considered in 80c for Income tax calculation.
Vikas. Gandhi answers, Whatever you pay towards the principal component of the home loan during the year, can be claimed u/s 80C of the Income Tax Act.
ashwani asked, what are the best option for 80 c for me aged 29 yrs. pf & pension fund deductions around 50,000 and ins premium of rs. 15,000. wht about other 35,000
Vikas. Gandhi answers, You can go for investing in ELSS. If you want to play safe then invest the balance in Postal National Savings Certificate or Bank Fixed Deposits.
gaurav asked, mr gandhi I want to know that Can I take the tax rebate on LIC premium pay by me for my mother LIC
Vikas. Gandhi answers, No. You cannnot claim rebate for LIC Premium paid for your mother. YOu can claim either for your self, your spouse and your children.
vishal asked, whether loans take for buying an open plot can be considered for taxes
Vikas. Gandhi answers, Sorry, Loans taken for open plot of land cannot be considered for tax deduction
KALYAN asked, Hello Sir, I am salaried person - I have not filled return for some reason by 31/07/07, can i filled return by now..
Vikas. Gandhi answers, You can certainly file your returns now. It would better be late than never
gaurhari asked, Hello Sir, I want to know that , i am taken a house loan from SBI is that exempted from taxable income. if exempted what portion will be exempted,is it principal amount or interest amout & another quastion is how much amount i will shown in HRA at the time of computation of taxable income without any receipt produce.
Vikas. Gandhi answers, Home loan taken from any bank is available for exemption. YOu can avail exemption both on account of interest as well as principal amount. The upper limit of tax exemption for interest component is Rs.150,000/-, whereas for principal is Rs.100,000/- u/s 80C. As far as HRA ios concerned, to claim exemption you have to produce the rent receipt. Only if you have paid rent, you will get exemption, otherwise not.
Vivek77 asked, I have made a Rs.15000/- FD for two years. Pls. tell me whether the accrued interest on this FD would be treated as income only after 2nd year. What would be my income tax liability
Vikas. Gandhi answers, YOu have both the options available, i.e. You can either show the interest income on maturity of F.D. or at the end of every year. However according to me it would be beneficial to show accrued interest at every year end, as by doing so you will spraed your income over multiple years and hence reduce your tax liability in the year of maturity.
Kannan asked, whether interest on PPF can be included as the investment?
Vikas. Gandhi answers, No. PPF interest is exempt from tax and hence cannot be included in investments for claimimg deduction.
KALYAN asked, Upto what time I can file the return...any fine to be paid..I received Form-16 from company..
Vikas. Gandhi answers, Since oyu have already missed your last date, you can now still file your return till 31st March, 2008. Till this date you won't be liable for any penalty. However in case of unpaid tax, you will be charged with an interest of 1% p.m.
taxadvice asked, Vikas, is there any way to save tax for short term capital gain
Vikas. Gandhi answers, For short term capital gain, there are no tax exemption available,as has been given for long term capital gain.
Rahul asked, Sir i have a question. Actually i am residing in delhi and working in gurgaon. Can i file my ITR in gurgaon or i need to file it in delhi.
Vikas. Gandhi answers, Since your employer is based at Gurgaon, you will need to file your return at Gurgaon.
nauwaq asked, I live in rented accommodation and have no other income other than salary and interest.Do I file ITR-1 or ITR-2?
Vikas. Gandhi answers, File your return in ITR-1
jasi asked, whether sale of house inherited from father who purchased proir to 1981 would be liable for gains tax
Vikas. Gandhi answers, Certainly you will have to pay capital gain tax when you sale such house.
Kannan asked, I used a service provider called TaxYantra to file my tax on my behalf. They have submitted the return to