Filing tax returns for 2007-08 is over. And it's time to get busy to plan your finances, because a few months down the line, the taxman will come knocking at your door to collect taxes for 2008-09.
Confused about what are the best avenues to save taxes?
Don't panic! Tax expert Vikas Gandhi answers some of your queries...
Vikas Gandhi says, Good evening friends and welcome back to the Tax Chat session
rony asked, How do I report the amount of approved charitable donations in the tax return if it is in excess of 25% of the adjusted assessable income or profits?
Vikas Gandhi answers, at 2008-08-07 15:49:32You need to calculate the eligible amount of Donation and then disclose the same in your income tax return.
mandeep asked, sir which documents are required for the taxes
Vikas Gandhi answers, Documents are required for preparing your income tax return. Although this list depends upon your income and various investment made during the year, some common documents are as follows - a. Salary Certificate (Form No.16) b. Housing Loan Repayment Certificate. c. Copy of Sale & Purchase Bill for sale of shares & securities. d. Savings Bank pass Book e. Various tax saving investments made during the year like Insurance Premium receipts, PPF challan etc. There are no documents required for filing income tax return.
asad asked, hi...is the PF that my company deducts from salary considered as saving? and is the max slab of 1 lacs including this PF?
Vikas Gandhi answers, Yes, PF on Salary is considered as saving and deduction for the same is available u/s 80C.
meenu asked, Can we get rebates on FDs?
Vikas Gandhi answers, To avail benefit of rebate on Fixed Deposit, you should have deposited the same in Term Deposit with scheduled bank with minimum lock in period of 5 years.
meenu asked, Can we get rebates on FDs?
Vikas Gandhi answers, To avail benefit of rebate on Fixed Deposit, you should have deposited the same in Term Deposit with scheduled bank with minimum lock in period of 5 years.
rajan asked, Sir, If I sell a property, is I am supposed to deposit the money in my saving account or any specific account? Thanks much
Vikas Gandhi answers, The concept of depositing amount in specific account is required only if you propose to reinvest in property and want to claim exemption from capital gain on sale of property. If such is a case, you will have to open a Capital Gain Account with a Bank and deposit the same in that account
nt asked, hello, Please let me know how much is short term capital gains tax from say equity markets.
Vikas Gandhi answers, For the current financial year, short term capital gains on sale of equity shares will be taxed @ 15%, if the same are sold in open market and STT has been paid. Elseiwse, such gain will be added to your other income and taxed accordingly.
RG asked, Hello! Whether interest accrued on NSC in Minor's name is counted as income for his / her guardian?
Vikas Gandhi answers, Since it is the income of the minor child, it is advisable that the income is clubbed with either of the parents and taxed accordingly.
praveen asked, is all the savings upto rs 150000 under 80c are exempted from tax in fin. yr. 2008-09
Vikas Gandhi answers, the limit of Rs.150,000/- is not for section 80C. this is the basic exemption limit which every individual will be able to avail irrespective of whether investment is made or not. Investment made for tax saving gets additional exemption upto Rs.1,00,000/-.
manish12 asked, do you need to declare stocks and mutual funds in your returns filed if yes then what is the limit above which one has to declare
Vikas Gandhi answers, A person is required to declare the amount invested in shares / mutual fund in following cases- 1. Invested in shares of one particular public company in excess of rs.1.lac. 2. invested in units of mutual fund of one company in excess of Rs.2. lac
pankajaakash asked, Hi Vikas, Is PPF interest is texable???????
Vikas Gandhi answers, Interest accrued on PPF account is exempt from tax.
heroheralaa asked, If we fix our money in FD for 5yrs , do we have to pay tax on intrest we earn
Vikas Gandhi answers, You have two options - either offer interest year to year on accrual basis or else offer the same on maturity of fixed deposit. It is always advisable to offer income on accrual basis.
rohitlohiya asked, Can i claim Tax rebate for health insurance on my wife name purchased by me?
Vikas Gandhi answers, You can claim for the mediclaim premium paid for your spouse.
paramjeet asked, I have invested Rs. 50,000/- in Kisan Patra in the year 2002,which is to be matured in 2009-2010. Can I get tax benefit for my income tax purpose
Vikas Gandhi answers, No. the amount that you will be receiving is your income. the interest that has been earned on Kisan Vikas Patra will be taxed. The principal amount won't be taxed.
TaxConsultant asked, While Calculating Capital Gain on sale of Property can we add Commission Paid to Broker & Transfer fees paid while purchase of property & for sale of property how much period is considered as STG & LTG
Vikas Gandhi answers, Yes, you can claim the expenses mentioned. Property sold within 3 years of purchase is considered as Short Term. in any other case it is Long Term.
mraveend asked, I have left one company in middle of the year & in new company not given Form16. Can I collate two form16 and file tax returns
Vikas Gandhi answers, You have to collate both the Form No.16 and file your income tax return.
dayas asked, Hello Sir ! To claim HRA benefit, whether Rent Receipt are sufficient or in any case, we may also require to show Rent agreement ?
Vikas Gandhi answers, Rent agreement is good document to prove the genuineness of the rent that you pay. However rent receipt is also a sufficient document provided it has been duly signed by the landlord with revenue stamp affixed and PAN of the landlord mentioned on the receipt.
raghavendra asked, If a software engineer changes the job in the mid of the month, both companies have deducted profession tax of 200Rs and forthe year it comes to 2600. Where as IT will consider only Rs2400. Where will the remaining 200 go?
Vikas Gandhi answers, there is no such law in the Income tax Act which restricts payment of profession Tax to rs.2400/-. Any amount paid towards profession tax is deductible.
Geetanjali Dave asked, Hi Vikas, plz tell whether deduction u/s 80E is available only for higher education for self or for children also
Vikas Gandhi answers, Deduction u/s 80E is available for higher eductaion for self as well as for children also. However only interest payment is eligible for deduction.
gajyo asked, EMI paid for purchase of Land (Only Land not House)is deductible from taxable income u/s 80C or not?
Vikas Gandhi answers, Deduction is available for residential property and not for open plot of land.
RGNew Delhi asked, Hello Sir ! I have a Housing loan against a property which is on Rent. For my self accomodation, i am paying rent. I understand that i can claim tax benefit on loan interest as well as HRA. My question is that HOw much amount of HRA will be deducted under the head "Income from House Property", whether full HRA paid or min. of 3 clauses (HRA received, 50 % of basic, HRA paid - 10 % of basic) ?
Vikas Gandhi answers, Firstly HRA exemption gets deducted from your Salary income and not from Income from House property. The amount of HRA exemption will ofcourse depend on the minimum of 3 clauses.
swats asked, How do I claim exemption on huge medical expense(2 lakhs) incurred on a family member ? What are the documents required ?
Vikas Gandhi answers, You can claim deduction on account of medical expenditure only if the same has been incurred for treatment of some specified disease. For claiming this dedcution you will require certificate from authorised medical practitioner in Form 10-I.
Vikas Gandhi says, That's the end of the session, frineds. Chat with you next week.
