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, in my view, you will be able to claim both the benefits, since both the house are situated at a distant place, where it is not possible to travel daily.
Manish asked, Do we have any provision of income tax rebate for money we donate to some other individual?
Vikas Gandhi answers, You can claim rebate / deduction for the amount donated to trust / institution you have been granted a certificate u/s 80G by the Income tax Department. Donation given to an individual in no way will qualify for the deduction.
mkkkkk asked, After how many years I can withdraw partial/full ammount from my PPF account? I mean before the 15 year of the tenure.
Vikas Gandhi answers, A person can withdraw partial amount from PPF account from 7th year onwards.
rawal asked, Hello Vikas Gandhi Ji, My sone will attains the maturity in feb 2009, is he is liable to file the return of income or still his income clubs in my income.
Vikas Gandhi answers, As on 31st March, 2009, your son will have completed 18 years of age and hence for the financial year 2008-2009, his income will not be clubbed with your income. If his income is above Rs.1,50,000/-, he will have to file his own income tax return.
amar asked, Hi, Interest on PPF amount is taxable ?
Vikas Gandhi answers, Interest on PPF whether accrued during the year or received on maturity is totally exempt from income-tax.
chirantan asked, sir, my company fixed a deadline of 1st january to submit all the investment proofs for the FY 2008-09, or else they would assume that i have not done any saving. Can company fix any date as per their wish?
Vikas Gandhi answers, Employers do have such liberty to fix a deadline for accpeting documents. In case you are not able to submit the documents by the date specified, you can cliam tax benefit while filing income tax return. Hence you will not be at a loss. Only difference will be that in such a case your company will deduct higher tax, which you will have to claim as refund while filing income tax return.
vikaslatey asked, Hi Vikas, I am a govt.employee. I have some income from intraday trading and F&O section. Should i show this income in IT return as income from other sources or as income from buisness?
Vikas Gandhi answers, Income from intra-day trading and F&O trading is considered as Business income and hence you will have to accordingly file your return.
gerald asked, I am salaried employee. Can I claim deduction for conveyance (Rs. 800/-*12 =9600) from Salary Income if conveyance allowance in not given by employer
Vikas Gandhi answers, To claim exemption on certain allowance, it is important that sich allowance forms part of your salary component. From your question, it reads like your salary structure does not have any conveyance allowance component. In such an event you will not be able to claim the exemption.
SHIVA asked, Sir, I want to buy a flat this year. Expecting 80% finance from Bank and another 10% from my mother who is working. Can I show that both as homeloans (combined amount)? and Can I get tax exemption for the EMI paying to both sources? Please suggest on this?
Vikas Gandhi answers, As far as tax benefit on repayment of loan to bank is concerned, there is no confusion. You can claim benefit on account of interest as well principal repayment. However as far as loan from mother is concerned, you will be able to claim benefit on account of interest paid to your mother. However principal amount repaid to your mother will not qualify for deduction u/s 80C.
shub asked, Hi This is Shub. I'm buying some shares from the market. If I sell them with in a month from the date when I baught it, will it be taxable?
Vikas Gandhi answers, Yes, if you sell the shares withon one month of its purchase, the gain that you earn will termed as Short Term Capital Gain. If you have sold these shares in open market thru a recognised stock exchange, you will be taxed @ 15% on such gain.
jayeshshah asked, What is the formula for computation of HRA
Vikas Gandhi answers, The amount of HRA exempt from tax is least of following - 1. Actual HRA Received 2. 50% of (Basic Salary + Dearness Allowance). In case house is situated in city other than a metro city, the rate is 40%. 3. Rent paid - 10% of (Basic Salary + Dearness allowance)
Vikas Gandhi says, That's all for this session. Chat with you next week. Good-bye.
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