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In an online chat with readers on July 8, Anil Rego answered tax queries.
Here's the chat transcript in case you missed the chat...
Asmair: I am getting rental income from property which I own. Should I file ITR 1 or 2?
Anil Rego: For Income received from only one housing property ITR I has to be filed.
Ramakrishna: I RECEIVE HOUSE RENT. I AM A GOVT EMPLOYEE. HOW TO CALCULATE TAX ON MY INCOME FROM HOUSE RENT? IS IT TO BE PAID BEFORE MARCH OF THAT FINANCIAL YEAR OR BEFORE FILING TAX RETURNS?
Anil Rego: If the tax amount is not paid till March end, the same can be paid while filing of taxes. The tax is applicable on 70 per cent of the rental income amount as 30 per cent is considered as maintenance expenses and the income is added to your total income and taxed as per tax slabs.
Maheshwar Reddy: Can I claim conveyance and medical bill while filing the income tax? Employee has not provided for this in Form 16.
Anil Rego: For conveyance there is a default deduction, however if you are looking to claim something over and above then it should had been showed earlier through your company. You can include the amount of medical expenses towards medicines up to Rs 15k. However, there should be sufficient proofs for the same, since this may call for tax scrutiny.
Kumar Nishant: What if one of my bank details regarding TDS deduction in FD is not coming in Form 26 AS despite deducting TDS?
Anil Rego: It is advisable to approach the bank and confirm whether the TDS amount has been deposited and also confirm the PAN no.
Rupesh Aggarwal: How to declare interest from FD and RD if I have invested them in August last year and they will mature this August?
Anil Rego: Since they will mature in Aug this year, the same will be due for taxation in the next Financial Year.
sumit surana: My wife is a house wife. I want to show some income of her by filing ITR 2. What income apart from salary is permissible in ITR 2?
Anil Rego: 1: Income from salary/pension; 2: Income from house property(s); 3: Income from other sources (excluding winnings from lottery and income from races horses); 4: Income from capital gains; and 5: Income from foreign assets.
saurabh joshi: My house is self occupied but the owner is my wife. How can I claim the benefit of interest on house loan? EMI is being paid from my income.
Anil Rego: In case the loan is in your name you can claim the benefit of taxation, however it is also advisable that the property is registered in the name who takes the loan in order to avoid complication.
K Srikumar: I got a gift of Rs 30 lakh from my in laws for sale of their ancestral house in May'16. How to disclose the gift in my IT returns?
Anil Rego: Since this transaction has happened in May 2016, the same will be due for taxation in the next Financial Year. However, any gift amount received till Rs 50k is tax free, post which there is tax applicable on the same.
Vaidya: Sir, What is the form for filing income from commission and brokerage? Is there any fixed limit for non-filing tax for income from such heads?
Anil Rego: All such incomes can be showed under 'Income from Other Sources'.
Rupesh Vardam: I am getting salary from my employer and I have part time income from consulting. Which return I have to file? And is it necessary to mention part time income in return?
Anil Rego: You can file ITR 1 and the income from part time work can be showed as income from other sources.
Pradeep Nair: Is there any limit for receiving gift money from parents /siblings? Is this to be shown in returns? Is it taxable? Up to what limit?
Anil Rego: If the amount of gift received is up to Rs 50k per year then there are no taxes applicable.
Indra Kumar: How to declare investment in shares while filing tax return?
Anil Rego: You have to report this only if there is a gain or loss.
Kaushal: What are the consequences of filing belated return?
Anil Rego: A penalty will be levied on the tax amount for late payment of taxes.
Menisha: Why is form 26AS needed? What are the benefits of getting it online?
Anil Rego: 26AS shows the amount of TDS already paid and helps in computing balance tax liability.
Jinny: I have filed my return of income; however, I omitted to claim benefit of Section 80C deduction. W hat should I do?
Anil Rego: You can try and re-file your taxes, however there could be a query from the IT department on the same. We would also recommend you to take help of a professional CA, who can guide you in doing so.
Teny-Thomas Thomas: Hi, I have a house and a plot. I have sold my plot and wanted to invest in a residential property under 54F IT act. Since I already own a house is it allowed?
Anil Rego: Conditions u/s 54F, the exemption is allowed only if the new property is a residential house. The exemption is allowed, if you did not have any residential property before the new house.
Murali Bansi: I omitted to submit rent receipt and investment proof to my employer because of which relief for HRA and certain other deductions weren't given to me; the tax deducted from my salary income is higher than my actual tax liability. How to claim refund of such excess tax?
Anil Rego: You can do so while filing the taxes online, however there could be a query from the IT department since there will be a substantial amount of refund due to you.
SV: Can I offset loss in Indian stock market with gain through US unlisted company ESOP? If so how can I do it in ITR 2?
Anil Rego: No, the taxation on these products is completely different and hence you can set off the same.
Amit: Is stipend received while studying taxable? I am receiving Rs 30,000 per month. No tax is being deducted. How to reflect this income in return?
Anil Rego: The same will be taxable only if the income crosses the income limit of Rs 2.5 lakh per annum.
amit koul: I do not have any income. I only earn from the interest on my saving account. Please suggest which online return form I have to fill?
Anil Rego: You will have to fill ITR 1.
Pradeep Nair: Hi, should we show small bank interest, say of Rs 2000-3000 in year while filing returns? Should we show any LIC or such like money receipt on maturity or surrender?
Anil Rego: Bank interest up to Rs 10k is tax free u/s 80 TTA and maturity payouts on many policies are tax free too. However it may be showed for reporting purpose but there will not be any tax implications.
DEVAKI-NANDAN BHOJAK: Hi, I have a speculation loss of Rs 11000; Purchase amount was Rs 22,00,000 and sale was Rs 21,89,000. Which return to file and how to show this loss?
Anil Rego: This would be showed under the head 'Income from Capital Gain'; use ITR 2.
Rashmi Lokar: When is it mandatory to file return electronically with digital signature?
Anil Rego: E-filing with digital signature is mandatory for those with business income of Rs 1 crore or more and professionals with income of Rs 25 lakh or more.
Illustration: Dominic Xavier/Rediff.com
Anil Rego is the Founder and CEO of Right Horizons, an end-to-end investment advisory and wealth management firm with multi-metro presence.