It's that time of the year again. Time to get ready with your investments and taxes.
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?
Direct tax expert Vikas M Gandhi offered some valuable tips. Here is the transcript:
Vikas Gandhi says,
tanmay asked, can i take my housing loan principal amount for income tax exemption
Vikas Gandhi answers, at 2009-02-26 15:51:58The total principal repayment amount of your housing paid for the financial year can be claimed under 80 C deduction subject to a limit of 100000/-
MP asked, I have bought 3 houses and pay home loan interest on all of them....How can I claim tax benefit on all 3 home loans the total of which exceeds 4 lacs but I understand govt allows only for 1 house and max 1.5 lacs
Vikas Gandhi answers, Out of the three houses one will be your Self occupied house and others will be considered as let out (whether actual given on rent or not). The interest paid on the self occupied house is Rs.150000/- and on the balance let out houses the above limit does not apply i.e whole interest paid during the financial year can be claimed.
sanjay asked, what is the maximum amount one can deposit in PPF account
Vikas Gandhi answers, A maximum amount of Rs.70000/- can be deposited in PPF account during one financial year
binex asked, My wife has deposited some amount in my PPF account. Can u she claim the tax benefit under section 80C for this. We both are working.
Vikas Gandhi answers, Yes she can claim the deduction under section 80 C for deposit in your PPF account
nitindada asked, sir, namaste. What is your opinion on saving tax by purchasing two houses and taking two housing loans . This way we can save tax and build property and compulsarily save something on monthly basis -as added benefits
Vikas Gandhi answers, It is a good way to encourage savings but a word of caution. Make sure you can sustain the repayment burden through the whole tenure of loan else the tax benefit taken will turn into financial contraint.
rajeshts asked, Will NSC interest take into consideration for deducting tax payable ?
Vikas Gandhi answers, Interest accrued on NSC upto the 5th year if added in your income can also be claimed as deduction under 80 C and therefore reduce your tax. The limit under this section is 100000/-. You cannot deduct it from tax payable.
brahmaji asked, i'm physically handicaped person with 75% disability ,how much exempt i will get from IT
Vikas Gandhi answers, The deduction for disability is available under section 80 U. Upto 80 % the deduction is Rs.50000/- & above 80 % it is Rs.75000/-. Hoever note you need to take medical certificate in form 10-IA to claim the deduction.
Rajendra asked, On the second house which is being treated as let out the entire amount paid as interest is allowed and net loss from House property can be claimed. Whether it is possible to declare the same to employer and do TDS accordingly
Vikas Gandhi answers, You can claim the net loss of house property against your salary and inform your employer to deduct TDS accordingly.
bala asked, Hi, I am paying home loan interest and also shown in tax savings but that house in some other place, i am staying in a rental in my working place, shall i also include rent in my tax savings?
Vikas Gandhi answers, The rent you are paying cannot be included in tax saving as you claim interest on home loan. But you claim HRA benefit for the rent paid from your salary.
HEMANT72 asked, can a salaried person takes benifit of depreciation of car ? if yes how ?
Vikas Gandhi answers, A person cannot claim benefit of depreciation on car against his salary.
ramji asked, please inform me whetehr there is any partcular ceiling on the employees contribution to PF which is covred unde 80 (C). I am not asking about the over all ceiling of pn lac. Suppose one contributes Rs.96000/- per year inPF can he claim the ful amount.
Vikas Gandhi answers, The total deduction available limit under section 80 C is 100000/-. There is no internal limit define within this section for individual items unless the scheme in which you contribute has,for e.g. PPF account only 70000/- deposit is permited in a year.
aikon asked, I know investing in FD for 5 years we can claim the deduction under section 80C. Is the returns (I get after 5 years) taxable?
Vikas Gandhi answers, The return on this 80 C benefit FD invested for 5years i.e. the interest for 5 years is taxable.
CASudhirMehta asked, Whether deduction U/s 54F should be claimed by purchase a commercial property for saving of LTCG?
Vikas Gandhi answers, To claim benefit U/s 54 F for saving LTCG you have to purchase a residential house property, a commercial property cannot be claimed.
pank_070781@rediffmail.com asked, how much is total decduction under sec 80 d
Vikas Gandhi answers, For an Individual in the financial year 2008-09 section 80 D limit is 15000 for person for whom the premium paid is not a senior citizen & 20000 if a senior citizen.
ADR asked, Hi, I worked for a company since Mar 08 and resigned in Oct08. However, Tax amount has been deducted by the company till Oct. After that I am jobless for last 4 months. Please suggest how do I go ahead and file the tax? where do I submit the investment proofs. Thanks a lot for your advice.
Vikas Gandhi answers, Based on the form 16 you obtained from the company you were employed and putting together all your other income after the end of financial year you can file your income tax return on your own an can claim all the deductions. The deduction proofs are not to be attached with your return they should be preserved with you to justify the claims as & when asked by IT dept. To calculate taxes & file your return you can take help of a Ta xprofessional or many online sites are available to help you file your return and one of which is Taxsmile.com
Vikas Gandhi says, Thats all for today, Thank you and have a Wonderful Day
