|
 | Help |
| You are here: Rediff Home » India » Business » Report |
|
| |||||||||||||||||||||||||||||||||||||||||
 Advertisement | |||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||
The time to file your tax returns is here. This is the time when you ponder over the tax you paid and the investments you made.
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 their 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 answered readers' queries. Here is the transcript:
Vikas Gandhi says, Good afternoon friends and welcome to this session of chat session relating to tax. It is the season to prepare and file your return of income. I will be happy to answer your questions relating to income tax and online filing of returns
Nayan asked, I want to know how much can a person invest to save taxes, my total salary is 7 lakh per annum, what is the max that I can invest to save taxes. Is it possible to evade tax completely.
Vikas Gandhi answers, To save taxes a person can invest up to Rs 1,00,000 per annum, in various schemes such as Insurance premiums, PPF, NSC, Pension plan. This amount also includes education fees for your children. In addition to this you can opt for paying medical premium to the extent of Rs 10,000 and get an additional exemption of that amount. You cannot evade taxes, but you can plan your income and investment in such a manner, so that tax implication is less
mm asked, Hello, I have recently received my Form-16 from my employer. But I found that my PAN number was wrong on the form-16. I informed the company about the same & they are going to issue me a new Form-16. What my concern is about the TDS, which company has deducted during the entire year. Doesn't the company quote PAN number of the employee while depositing TDS amount with the IT department? If so, the company would have quoted wrong PAN while depositing the TDS amount. In this circumstances what should I do?
Vikas Gandhi answers, In this case you need not do anything. You were supposed to inform your employer and you have done that. What has to be done now is by your employer. If your employer has already filed TDS returns, for all the four quarters of the year, he will have to revise all the returns, wherein your wrong PAN was mentioned. You can go ahead with the new Form No.16 given to you by your employer.
sangram asked, Is there any time limit of getting back IT Returns ? I Have filled IT returns for 2005-06 but still haven't received any money
Vikas Gandhi answers, In normal circumstances, if there is no defect or shortcomings in the income tax return you filed, you should get your refund back within a year. What you can do is wait for a month or so. then too if you don't get your refund, you will have to contact your Income Tax Officer and inform him about the non-receipt of refund
sumit asked, I was wondering if the rent I am receiving for let out flat is taxable or not
Vikas Gandhi answers, Yes. it is your income and hence it is taxable. If you are owning the flat that you have rented, then such income will be taxed under the head "Income from House Property" and if you have taken the property on rent and then further rented out, then the rent income will be taxed under Income from Other Source.
shr asked, Hi! Can u please tell me the tax implications/rules for the interest earned on Fixed Deposits? Thanks.
Vikas Gandhi answers, The entire interest earned on fixed deposits (whether with bank or company) is taxable. there is no exemption available on such interest. However if any tax has been deducted on such interest, then you can claim deduction of such tax amount from your tax calculated.
anantha asked, Hello Sir, Hope you are doing good. Is there way where I can have control of my I.Tax rather my company deducting through TDS
Vikas Gandhi answers, I assume you are receiving Salary income and tax is being deducted on this salary by your employer. As far as controlling your Income tax is concerned, it is actually under your control only. The employer is deducting tax from your Salary on the basis of your salary structure and declaration as regards other income and investments given by you. Your employer is not assuming your income and deducting your tax. It is the responsibility of your employer to deduct tax from your salary income and if he/she does not do so, he will be liable for penalty. At the most what you can do is not declare your income other than salary income and you individually pay taxes on such income. However in such case you may be liable for paying interest in addition to income tax.
Abhijit asked, Can I fill my Income Tax Return online now? I am outside India currently so if this is possible, it would be immensely useful. Please confirm.
Vikas Gandhi answers, Yes, from this year onwards filing tax returns online has been made available to all the categories of the tax-payers and hence you can file your return online. For further information in this regards you can visit taxsmile.com, where you can prepare and file tax returns online.
nikku asked, sir do we have to give details of each & every credit dates on which the interest in credited for the purpose of TDS in new Form ITR 1 even if there are 40 such entries, where is the space in the form
Vikas Gandhi answers, Yes, you do have to mention all the dates. If the data is multiple, you will have to prepare an annexure in the similar format and attach with the return of income.
ff asked, I want to know how to get the maximum tax benefit out of home loan?
Vikas Gandhi answers, To get maximum benefit of home loans, you can bifurcate your principal and interest portion in such a manner that interest component totals up to Rs 150,000 and balance is covered in the principal amount. With investments in other savings instruments, your principal amount cannot exceed Rs 100,000.
PREM asked, how do I do online filing for IT
Vikas Gandhi answers, For filing tax returns online, you first need to prepare your income tax return in the electronic format (XML format) acceptable by the Income Tax Department. For this you have following options -- a) Either download utility available at www.incometaxindiaefling.gov.in; b) Use online software available which computes and also generates XML format. You can visit www.taxsmile.com for preparing and filing tax returns online. Once you have prepared your return in XML format, you will have to visit www.incometaxindiaefling.gov.inand upload your return at that site.
PREM asked, Hello Mr Vikas - I have done the investment falling 80C up to 1 Lakh and also taken up home loan which contributes to Rs 40,000 towards the annualized interest. (EMI - 17,200 per month for 15 yrs tenure). Kindly suggest me to SAVE more tax...
Vikas Gandhi answers, You have already exhausted your investment limit u/s 80C. At the most you can take mediclaim premium up to Rs 10,000 and get additional exemption till that amount.
AB asked, Vikas I finished my Housing loan this March, how do I plan not to fall under tax bracket for the year 2007-2008
Vikas Gandhi answers, Since you have ended up paying your housing loan, you can now invest more under LIC [Get Quote] premium, PPF, NSC, ELSS schemes, pension plan up to Rs 100,000 and get deduction from your total income. In addition to this, if you are having surplus income you can invest in schemes which gives you tax-free returns.
vinay asked, I had purchased a flat for Rs 3.5 lakh in 1995. I stayed in it and selling it now for Rs 5.35. Will it attract any tax ? If so, how save the tax? Pls guide. Thanks, vinay
Vikas Gandhi answers, First for calculating your capital gains you need to know what was the sale amount as per the Stamp Valuation Officer. If the amount is higher than your actual sale price, the higher amount will be considered your Sale price. Assuming that it is not the case, under given scenario you will not be liable to pay any tax
Neo asked, Hi. I will get possession of my house in Dec-Jan this year. I am currently paying a tranche-EMI (equal to EMI) with HDFC [Get Quote] where I am paying some part of principal component along with interest component too. I know that I can get tax benefit for the interest component (in five equal amounts for five years). Can I get benefit for the principal too? Currently, apart from the interest the remaining amount I pay is deducted from principal. Thanks in advance.
Vikas Gandhi answers, No you cannot get the benefit of the principal amount
ranjeet asked, sir, my gross salary is 5.5 lakh per annum. how much maximum tax I can save ?
Vikas Gandhi answers, You have given your gross salary. However this salary may be including various allowances which might be tax-free, which has not been provided and hence cannot be commented on. If you can invest up to Rs 100,000 in various schemes such as Life insurance premium, PPF, NSC, Pension Plan, ELSS etc, with the current salary amount given you can save tax up to Rs 30,900
Reddy asked, Hello Vikas, I'm a SoftWare engineer. I earning 5.7 lakh per annum. How much amount that need to pay as Income Tax? After Standard deductions and investments under section 80C and 80D)
Vikas Gandhi answers, I assume that the amount of Rs 5.7 lakh per annum is taxable salary and you have excludes all your allowances which are exempt form tax. Further assuming that you have invested Rs 100,000 u/s 80C and Rs 10,000 u/s 80D, you will have to pay a tax of Rs 1,23,600 including the cess amount for the year ended 31/03/2008.
askbalancer asked, Good a/noon sir..After working for 2 yrs I am proceeding for further studies to NTU, Singapore. My employer says he will give back the PF cheque to my parents address after statutory 60 days gap after deducting tax on reversing the 80c benefits I got for 2 yrs on PF contribution. He further says I can claim the tax exemption in the current yr when I file returns... I shall be in Sing.. re for 2-3 or more yrs. My Q is can I file tax return from foreign land? What shd I do? Thanks
Vikas Gandhi answers, Yes, since from this year filing tax return online has been possible, you can file your tax return from foreign land. For further information regarding e-filing you can visit www.incometaxindiaefling.gov.in. For preparing your return online you can visit www.taxsmile.com, where you can prepare online tax return.
Pradeep asked, I have salary income and short term capital gain to declare. Which income tax form should I be using?
Vikas Gandhi answers, Since in addition to Salary, you are having Short Term Capital Gain, you will have to use ITR - 2
rohitkapoor asked, Hi Vikas , My name is Rohit , I am living in London for last 7 years now planning to come back to India . Please let me know how much tax it will be on Rs 70,000 per month earning component
Vikas Gandhi answers, If the amount of Rs 70,000 p.m is earned in India, your annual tax liability for the financial year ended 31/03/2008 will be 2,50,290
Sundar asked, Vikas, apart from the 1 lakh exemption under 80C ( I am not taking a Home Loan), can we claim any tax exemption under any scheme using NABARD funds or any other instruments? Kindly Advise..
Vikas Gandhi answers, No. you cannot claim any tax exemption under any scheme using NABARD fund or any other instruments, since you have already exhausted the limit of Rs 1,00,000
neer asked, How can I save a tax by buying 4-wheeler?
Vikas Gandhi answers, By buying 4-wheeler, you can save tax only if you are carrying out any business or profession and this can done on account of Depreciation and claiming motor car expenses
SrCitizen asked, I have already posted my queries. How to invest 4 lakh for a 69 yrs person for the next 10 yrs?
Vikas Gandhi answers, Sir, you can invest in schemes which give you tax-free returns and immediate liquidity as and when required.
sunny asked, sir can you please tell me if gift cheques can be used in saving tax?
Vikas Gandhi answers, Gifts received are now taxable. However if the gifts received is from any relative, or on the occasion of marriage then the same is exempt. In any other case, if the total of the gift received exceeds Rs 50,000, the entire gift will be taxable.
Rajasekhar asked, I have received my form 16 for this year where my employer has forgotten to include the investment proof that I had submitted(well on time). How should I obtain the refund of excess tax
Vikas Gandhi answers,
 Email this Article  Print this Article |
|
|
| © 2007 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback |