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 back to the tax chat session.
harilal asked, Dear Mr. Gandhi, Can i use any other section for tax saving after exhausting my 1 lakh under 80c, if i do not have a home loan or medical premiums. also i would not make any donations. i can go for any other investment option as such which gives returns and saves tax.
Vikas Gandhi answers, at 2007-08-09 15:59:20Sorry, but after exhausting the deduciton u/s 80-C and given the reservation that you won't be paying any medical premium or giving any donations, you are left with no other options for claiming any deduction under any other section. There are no other investment options left for claiming tax benefit
vijh asked, As on date, my son is minor (17 and half years. I have invested in FD in his name. On maturity, he will be major. How the interest gain will be evaluated for taxation - whether in his income or to be clubbed in parent's
Vikas Gandhi answers, SInce on 31st March, 2008, your son will attain an age of 18 years, he will be major as per Income Tax law, and hence all the income will be taxed in his hands and will not be clubbed in your hands.
Sumit asked, Vikas, Is there a provision to claim tax benefits on stamp duty and registration amount paid for a house if the house is occupied in the same financial year as the registration was done?
Vikas Gandhi answers, You can claim such benefit u/s 80C of the Income Tax Act.
amiyasahu asked, what are the capital gain tax rates
Vikas Gandhi answers, The different Capital Gain tax rates are as under - a) Short Term Capital Gain (on which STT is paid) ---- 10% b) Other Short Term Capital Gains ---- At normal rate of tax c) Long Term Capital Gain (on which STT is paid) ---- no tax d) Long Term Capital Gain (on shares & Securities) ---- 10% or 20% e) Other Long Term Capital Gain ---- 20%
maanu asked, sir, if i give 10000 as donation what will be the % saving for tax purpose.. what is the max limit ?
Vikas Gandhi answers, Your answer depends on where you have donated the amount. For claiming tax benefit first the institution where you have donated should have given you a certificate stating that the amount donated is eligible for claiming deduction u/s 80G of the Income Tax Act. If such certificate or declaration is not given, you will not be able to claim tax benefit. Assuming that such declaration is given, deduction for amount donated is given either on 100% or 50% of the amount donated depending on the institution where the amount is donated. In certain cases, the deduction is also restricted to 10% of your total income (as per Income Tax law.
deepakm asked, I have not filed my 05-06 return but have filed 06-07 return. Is there any problem with it.
Vikas Gandhi answers, This depends whether you have filed your returns for 04-05. If you have filed for earlier years, then of course department will find a gap for one year and approach you for filing return. In such a situation you will have to face consequences if any. However if this is the first time you are filing your return you may ignore filing return for 05-06. However according to me if you were liable to file return for 05-06, you should file the same, before the Officer detects such non-filing.
paidi75 asked, Hi vikas,I have lost Rs50000 in F&0 shares.Can i show this amount as a lost in income tax return?Is it possible?
Vikas Gandhi answers, Dealing in F&O shares is considered as Specualtive transaction and hence the loss incurred will be treated as Speculation loss. You should show this loss in your income tax return. However you will not be allowed to set-off such loss against any other income. YOu can only carry forward such loss to subsequent year and claim set-off against Speculation Profit only.
todd asked, Are mutual funds better option than PPF/NSC?
Vikas Gandhi answers, If you have the capability of handling the risk attached with mutual funds, of course mutual fund are better option than PPF / NSC. However if you want to play safe then PPF / NSC are better option. It's your decision.
mukesh asked, There is no tax on long term capital gains so far as I know ( viz. more than 1 year of locking).But, what I heard is that there are some capital bonds that can be used to avoid taxes on short term capital gains//Please tell me how could I buy these capital gain bonds.
Vikas Gandhi answers, Only those long term capital gains are exempt on which you have paid STT while selling. Other long term capital gains are taxable. Further against short term capital gains there are no exemption available yet. There are no such bonds,