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Expert's take on your TAX WOES!
Tax expert Mahesh Padmanabhan of RelaxWithTax answered readers' tax queries in an online chat on January 18. For those who missed the chat, here's the unedited transcript.
Mahesh Padmanabhan says, Good Afternoon Friends, Welcome to an interactive session on personal taxation. Mahesh Padmanabhan, Team relaxwithtax
Ajay asked, Hi, I have availed MaxGain homeloan from SBI in which we can keep surplus amount in the homeloan account. So interest will be calculated only on outstanding principal minus the surplus amount kept in the a/c. This financial year I saved good amount of money as I kept some surplus amount in the account. The total interest for the year is around Rs.70000. Because of this I could not fully utilize the Income Tax rebate on interest which I could have availed for Rs.150000 (had I kept lesser surplus amount in the a/c). My question is is it recommended to reduce the interest by keeping all surplus in the a/c or is it advisable to fully utilize the Income Tax rebate on interest payment and use the surplus amount somewhere else ? Thanks in advance :)
Mahesh Padmanabhan answers, at 2013-01-18 14:02:52Hi Ajay, Tax rebate is an incidental benefit that you get, the primary point is whether you are justifying the usage of your money. i.e. if you could get better return from your money compared to the home loan rate then it is advisable to invest and pay the home loan interest in full. Else, repay your home faster to reduce your interest outgo
mk asked, can we show the tution fees in 80c for tax saving purpose?
Mahesh Padmanabhan answers, Hi, Yes tution fees paid towards education of your dependant children can be claimed as deductible expense u/s 80C. However, private tutions / classes etc are not included.
Harry asked, Is there Infrstruction bond limit of 20k considered for tax rebate this year.
Mahesh Padmanabhan answers, Hi Harry, No section 80CCF for deduction of investment made in infrastructure bond is not available in FY 2012-13
Mahesh is principal advisor -- direct taxes group, RelaxWithTax Consultants Pvt Ltd, a Mumbai-based personal taxation and finance solutions provider.
Expert's take on your TAX WOES!
divya asked, Does one need to file return if there is income from shares investment where the profit is below 2lacs.
Mahesh Padmanabhan answers, Technically you are required to file tax return if your income is in excess of the zero tax slab. However, it is always advisable to file your return and declare the gain earned.
Harry asked, Thnks Mahesh for info. Does it mean,the max we can invest is 1 Lac in various schemes this year or is there any other alternative in place of infrastructure bonds to go beyond 1 Lac
Mahesh Padmanabhan answers, Hi Harry, there is a new deduction available to first time / new retail investors u/s 80CCG for investment in eligible equity shares, wherein the deduction can be claimed upto Rs. 25000. There are certain conditions to be satisfied and is available only once in lifetime.
Sim asked, I sold two of my properties this year and made a good money. Do I have to declare the same in this years ITR or can wait and do it in the next year so that I can plan out re-investment if any?
Mahesh Padmanabhan answers, Capital gain is taxable in the year of sale and hence you would need to declare this in the current year return. Also, reinvestment has to be made within 6 months from the date of sale. I am assuming that the properties were held by you in excess of 36 months
pankaj asked, i have 3 lac income; 9360 pf is deducted; 2 children both in school, how can i save tax in different sections without any investment. plz guide eg. how much i can clain on studies of two and any other deductions?
Mahesh Padmanabhan answers, In case you are staying in a rented home then HRA deduction can be claimed. School tution fees paid for 2 children can be claimed. You need to bring your taxable salary to about Rs. 2 Lakh mark if do not want to pay any tax
priyaTanvi asked, what is last date to have this plan complete ?
Mahesh Padmanabhan answers, Last date to invest to save tax is March 31, 2013 for FY 2012-13. However, in case you do not want your employer to deduct TDS from your salary then you would need to enquire with your employer as regards the last date for submission of your investment proofs.
Expert's take on your TAX WOES!
gfdg asked, Does possession letter mandatory in case of Home loan principal repayment benefit under 80C? Mahesh Padmanabhan answers, No for claiming deduction of principal component u/s 80C, possesion letter is not mandatory. However, for interest deduction, this is mandatory
modi asked, i paid 12000/- room rent per month,total is 144000/-,this amt is deduct full from gross salary or some of its part
Mahesh Padmanabhan answers, HRA exemption is based on least of 3 amount combination and hence it is not necessary that you may get the entire rent paid as deduction.
RAMMOHAN asked, HAVE INVESTED 100000 FOR THE YEAR UNDER 80C AND 30000 UNDER 80D.WHAT ARE THE OTHER OPTIONS AVAILABLE FOR INVESTMENT
Mahesh Padmanabhan answers, Please check the answer given earlier to Harry, additionally you could make donations and claim deduction
vishy asked, hi Mahesh I have a doubt related to HRA and Home Loan, how these two components are interrelated and what type of tax benfit i can fetch if i have home loan?
Mahesh Padmanabhan answers, Technically, both are different. Conditions for claiming the deduction for either have to be met to claim both deductions together. You could check knowledge resources on relaxwithtax.com for details
sagar asked, I have a PPF account with ICICI but they donot issue passbook for the same. How do I claim for tax benefit
Mahesh Padmanabhan answers, My understanding is that passbooks are mandatory if the account holder needs the same. However, you could ask them to issue a certificate for the investment made.
Expert's take on your TAX WOES!
Rohit asked, hi sir, i am salaried and also have rent income, which form i have to file
Mahesh Padmanabhan answers, If you have just one house then use ITR-1 form
puneeth asked, there is some section called p/d under which we have to produce bills for magazines & subscriptions .. do we have any other option in the same ?
Mahesh Padmanabhan answers, No there is no such section in the Income Tax Act but probably this is an employer run reimbursement component in your salary
virendrav asked, how could we avail 80 GG benefits in online ITR filing, I have calculated but CPC bangalore didnt count 24000 per annum i put
Mahesh Padmanabhan answers, If you are using the income tax provided efiling tool then you would need to work out the amount of deduction and incorporate the value. Please speak with the IT authorities through their ASK help centre
sk asked, what is the penalty for not filing the return
Mahesh Padmanabhan answers, Penalty is Rs. 5,000
deepak asked, my brother is going to gift me cash of 1000000.will this be taxable. if yes,which form i have to fill.
Mahesh Padmanabhan answers, In case of gifts made by blood relatives, the same is not taxable in the hands of recepient. Hence in your case as your brother is giving the gift it would not be taxed. You would need to complete certain documentations such as gift deed, his ability to make the gift etc.
imtiyaz asked, hi mahesh, I have already done investment of above 1L. now One of the advisor advised me to go for Rajiv Gandhi Scheme for 50k deduction. Will that be an advantage or is there any other way to save some money. Please advice
Mahesh Padmanabhan answers, Please check my answer to Harry in this chat for this query
Tej asked, Hi, Im living in my Own house... Can I show the HRA exemption in Income Tax
Mahesh Padmanabhan answers, No please do not claim, this is contrary to the law
Expert's take on your TAX WOES!
derg asked, My wife paid for my PPF , can i claim the benefit or can she claim the benefit for Tax ?
Mahesh Padmanabhan answers, There are no commercial consideration between husband and wife and hence you can claim the deduction if the house hold expense are shared by both of you. Alternately, she can also claim the deduction for the same. Would suggest you to do good documentation if you are claiming the deduction
pankaj asked, thanks; but how much maximum we can claim for 2 children tution fee etc.?
Mahesh Padmanabhan answers, Up to the ceiling of section 80C i.e. Rs. 1 Lakh
Rohit asked, can i show rent expense paid to father..? if yes, what is the limit for paying rent to father..? can i have to enter into rent agreement...?? can i pay in cash..??
Mahesh Padmanabhan answers, Yes you can show rent to your father. Please read detailed resources on relaxwithtax.com on this subject
kanik asked, what is the minimum lock in period for PPF ?
Mahesh Padmanabhan answers, 15 years is the lock-in period but you could avail of loan based on calculation norms after 5 years
Tushar asked, How do i use my interest and principal amount paid for my home loan account
Mahesh Padmanabhan answers, You could use the principal amount repaid as deduction under section 80C upto ceiling of Rs. 1 Lakh and in case of interest upto Rs. 1.5 lakhs if the home is used for self occupation
derg asked, We are planning to buy a house on Loan Is there any tax benefit available for us ? our annual income is 12 Lacs
Mahesh Padmanabhan answers, Please check the answer to Tushar
Tej asked, The 80C exemption limit of 1 Lakh is very less..... Is there any possibility that the limit value will increase in future??
Mahesh Padmanabhan answers, This would need to seen in the up coming finance budget in February 2013
munnu asked, How can I get an exemption on the mediclaim policy I have taken for Rs.15,000/- for my parents and my family. I am a service class person
Mahesh Padmanabhan answers, Mediclaim premium paid gets you deduction from your taxable income u/s 80D. The limits are Rs. 15,000 and an additional Rs. 5,000 if the same is paid for senior citizen
aman asked, I have around 3000 left for 100000 i.e. invested around 97000. where do you suggest to invest this petty amount
Mahesh Padmanabhan answers, PPF should be a reasonably good investment OR ELSS mutual fund that has a lock in of 3 years
Hemant asked, I have taken Mediclaim for my Parents-in-Laws rom my current organisation. Can I claim this under Sectio 80D for Tax exemption.
Mahesh Padmanabhan answers, Technically no, as the deduction is for parent/s of the assessee and hence in-laws might be excluded
INDRANIL asked, I HAVE TAKEN HOME LOAN FROM JAN12 WHICH ITR WILL I HAVE TO FILL FOR ONLINE SUBMISSION OF RETURN. I AM A SERVICE HOLDER?
Mahesh Padmanabhan answers, ITR-1
derg asked, I have made huge losses in stock market for the last 4 years in F&O but have not declared it as of now in any of my IT returns. Can i claim it now ? If yes , Is it possible to claim for the last year or for the preceeding years aswell. I pay Tax regularly on my normal Income from Salary BUt lose most of the money in stocks
Mahesh Padmanabhan answers, Loss has to be filed in the relevant year's tax return and it has to be filed on time. Now you cannot claim the loss of the earlier years
aman asked, is tution fee for wife (housewife) covered as well for tax saving purpose?
Mahesh Padmanabhan answers, No Aman, you cannot claim this under section 80C
Narendra asked, Is interest earned by co opeartive society member from the society on amount kept as deposit is taxable??
Mahesh Padmanabhan answers, Yes it is taxable
bh asked, i have paid interest on home loan and capital also this year.. what documents i need to give so that i can get tax exempt.
Mahesh Padmanabhan answers, As of now you could ask for a provisional interest certificate and later after the financial year ends, you could obtain the final interest certificate
aman asked, I purchased a flat (July 2011) under resale which is under construction and yet to be taken under possession. How and when i can claim tax benefit for the same
Mahesh Padmanabhan answers, You could claim the principal repayment benefit u/s 80C
Mahesh Padmanabhan says, Dear Friends, it has been my pleasure to have interacted with you. Unfortunately, we have run out of time and hence cannot answer all your queries. We however, promise to be back again in the near future to address the same. Thank you and good day. Mahesh Padmanabhan - Team relaxwithtax