Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Mihir Tanna, associate director, S K Patodia and Associates, will answer them.
Sudipto: Dear sir, I have recently given a loan of $95,000 USD to my NRI daughter living in the USA, when she requested me for this help to buy a house. I expect to get this back from her in a year or two.
While transferring this amount to her, the Forex transfer agency had advised me to show it as "Gift" to blood relation and has charged TCS @20% on INR value above Rs.10 L - as per RBI's regulations.
While doing so, they stated that I shall be eligible to adjust it against any future tax liabilities of the current f.y. and the excess amount left unadjusted thereafter, if any, shall be claimed as 'Refund' during my ITR of the next Assessment Year.
Now my question is - (1) What kind of documentations I need to maintain for this TCS refund? (2) After a year or two, when my daughter transfer this money back to my bank account, how do I correlate receiving this huge amount coming back into my account, and show that it is not my income from any foreign sources and instead a return of fund I had transferred as a loan to my blood relation, which is now being repaid back, without any financial gains (e.g. interest earned or so), albeit there might still be some profit or loss, depending upon the forex exchange rate prevailing at the time of this refund.
Please advise.
Gift deed, forms submitted to bank for remittance and bank statement will be sufficient for claiming refund
While taking back money, nature mentioned in forms submitted to bank will suffice to say that amount received back is not an income.
Mohammed: Sir, I want to sell one of my apartment of 1200sq.ft. 2 bedroom, and have made a sale agreement for 66.5 lakhs with a 5 lakh token advance payment paid partly by cash and cheque.
Now the buyer wants me to remake the agreement for 83 lakhs as his loan from bank is telling to buy for higher amount in paper. But he will pay me only 66.5 lakh and wants me to sign that i sold for 83 and he says he will pay if any tax or tds if required. What should I do?
As per income tax provisions, person cannot accept more than 2 lakh from any person. Further, in normal cases property transactions should not be below stamp duty value.
For any transactions carried out against your PAN, you will be liable to face penal consequences and indemnity by any person will not save you from penal consequences, if any.
Lakshmi: Hi sir I am retired 63yrs old. in income tax portal under AIS, form 26AS both not showing my pension income as on 31st August 2025.
In 2024-2025 fy I got retired so 6 months on salary,6 months on pension, my salary is showing, FD interest is correct, savings account interest is correct but not my monthly pension.
Now if I file tax as per AIS OR 26AS I will pay around 8k but if I voluntarily add my 6months pension than tax around 47k. What should I do?
If I not volunteered later will I get any tax notice, penalty? Also this 26AS, AIS for fy 2024-2025 gets updated even after 1 year I mean what is the deadline for AIS, 26AS updation for employer. Thank you in advance sir
It is advisable to file return with actual income and not as per AIS. Further, AIS can be updated at later stage if reporting entity missed to report which might not be the case as per facts provided by you. 26AS can be updated till 6 years and there is no time limit for AIS.
Daniel: Dear Sir My wife is a housewife. Her income is through the interest on her fixed Deposits in the bank. Other than this she has no income. Yet she has to pay income tax on the interest received. She is 75 years old. How can we avoid paying the Tax? Is there any legal way? She is paying 265000 income tax per year.
For FY 25-26, tax slab rate has been changed and substantial reduction in tax liability is expected in your case.
Ravi: Sir, I'm writing on behalf of a sr citizen aged 78. She is on a family pension (3.1 lk per annum) and has around 3 fds 20lk+ each in 3 national banks. She is paying IT on whatever that is assessed from family pension + interest income.
I would like to know the following: 1. Should we split in to smaller fds like 5lk or 10 lk? 2. In terms of financial management and best practice, what is the suggestion here? 3. Any special considerations from IT for seniors of her age which we consider while filing ITR?
In my view, splitting 20k FDs will not make any difference.
Higher basic exemption limit will be applied automatically while calculating tax. In addition to that in case old tax regime is beneficial, higher mediclaim deduction of 50k is available, higher deduction against interest on saving/FD of Rs.50k.
- You can ask rediffGURU Mihir Tanna your questions HERE.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
© 2025