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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?
Vikas M Gandhi answers some of your queries.
Vikas Gandhi says, Good evening friends and welcome to the tax chat session.
manu12 asked, apart from 1 lac on 80cc what other things can one invest in to save tax
Vikas Gandhi answers, at 2008-01-10 16:18:09For getting tax benefit, you can addiitonally take mediclaim insurance and reduce oyur taxable income by further 15000/-. Besides this you don't have any other option to save tax. If you are having sufficient funds to invest, try investing in funds which give you tax-free returns.
anand asked, i have 3 insurance policies which will have tax exemption?
Vikas Gandhi answers, All insurance policies, provided they are life insurance, are eligible for tax exemption within the overall limit of Rs.1,00,000/-.
pandu asked, whats the per centage of HRA is exempted from salary
Vikas Gandhi answers, For knowing the exempt amount of HRA, three criteria are taken into consideration, viz: a) Actual HRA received b) if the house is situated in Mumbai, Delhi, Chennai or Kolkatta - 50% of Salary or else 40% of Salary c) Rent paid - 10% of Salary The lower of above three amount is considered to be your exempt HRA
amo asked, I have purchased flat(parents stay here) at Solapur my native place around 450 km from mumbai(city where i work). I stay at rental house in mumbai.Can I get tax exemption for both rent which pay in mumbai and home loan emi which i pay for flat at solapur
Vikas Gandhi answers, In my view you can take benefit for both the exemption. this is because you are staying in Mumbai owing to your job and hence have to stay in a rented house. In such a situation, you can take benefit of HRA and also housing loan for house purchased at native place.
vinay asked, hi vikas, tax exemption for men is 1,10,000. i am working in IT but my employer says only 1 lakh. pls suggest
Vikas Gandhi answers, Amount of Rs.1,10,000/- is the basic tax exemption limit. Whereas the amount of Rs.1,00,000/- you get exemption only if you have made certain tax saving investments. this is over and above the basic exemption limit of Rs.1,10,000/- and subject to the fact that you have made such investment during the year.
Paresh asked, I plan to start investing in shares soon. What are the tax implications? Are taxes witheld from my earnings or do I have to pay tax on my own?
Vikas Gandhi answers, As far as investing in shares is concerned, the taxability of profit depends on the period of holding that shares. if you keep the shares for more than 1 year of purchase and then sale the same in stock exchange the profit/loss is known as Long Term capital Gain. This profit is exempt from tax, as you already pay Securities Transaction Tax while selling. However is you hold the shares for less than one year, it is termed as Short Term capital gains and on such gains you need to pay tax @ 10%.
venkat asked, i want to file my previous year tax return? what is the fine that i need to pay?
Vikas Gandhi answers, By previous year I presume you are speaking of year ended 31/03/2007. this be the case you won't be paying any fine. However you will have to pay interest for late filing of return, the rate of which is 1% per month. this will be case only till 31st March, 2008. If you miss this date also, then you may be penalised with a fine of Rs.5,000/-.
Anwar asked, Hi Vikas, I changed my job in Sep07. Tax was deducted at source in the prev co. However, I haven't declared the prev co's income and hence no tax is being deducted currently. Please advise. Should I declare the income or wait for Form16 and pay the remaining tax while filing?
Vikas Gandhi answers, This totally depends on you. the ultimate aim is to pay tax properly, whatever manner it be. One thing is sure that on account of change in job, you may need to pay additional tax. In my view it will be advisable that you declare your previous employment salary to oyur employer, so that he can deduct proper tax on your behalf. You can also pay tax afterwards but in that case you may need to pay interest also.
Harish asked, Hi, my Father has been retired and I have taken 1 Insurance plan on his name and paying the insurance. Well can I show this proof for my tax saving?
Vikas Gandhi answers, Sorry to say but you won't be able to claim the premium paid on life of your father as your tax saving investment and claim exemption.
Test asked, I have paid LIC [Get Quote] premium for the lat financial year in the current financial year. So can I consider those for tax exemption for this year?
Vikas Gandhi answers, Irrespective of the year for which you have paid premium, the requirement is that you should pay life insurance premium during the year. Hence you will be able to claim deduction on account of such payment.
PM asked, if I invest as Bank FD 50K in my wife's name (wife is not working and does not have any PAN), is the interest is taxable?
Vikas Gandhi answers, If you invest Rs.50,000/- in name of your wife, any income that generates from this investment will be treated as your income and accordingly the same will be added to your income and you will be paying tax on the same.
Myles asked, I have taken out a mediclaim policy in my in-laws name. I have paid for it. They are both over the age of 60. Am I eligible for tax deductions?
Vikas Gandhi answers, You can take mediclaim insurance policy for your parents but not for your in-laws. You won't be getting any tax exemption on account of such payment.
nitin asked, I gifted around 1lac to my fater 2 month back. Can i get tax exemption on this amount? what document is required to be submitted by me to IT deptt for tax exemtion on this
Vikas Gandhi answers, Gift given to anyone is not an allowable expenditure and hence you won't be getting any tax exemption on account of such gift.
binu asked, Is putting 20k per year on ppf a good idea given the different opinions advicing otherwise
Vikas Gandhi answers, In my personal view one should deposit some amount in PPF every year. This is a secure investment you make and is only one which no one can touch. though returns are lower, it is a safer investment and given all other options, PPF should be one of the option.
prandan asked, Does investement in IPO qualify for exemption of overall limit of Rs.100000/-??
Vikas Gandhi answers, Investment in IPO does not qualify for any tax exemption.
Saumya asked, Hi Vikas, I have switched job last month and the previous company have duducted tax till the last date. My total salary in the current organization for next 4 months would be in the 1.1Lakhs. The prevous company would give me Form 16 for the period till I was there and the current company would also follow the same. How should I file my return?
Vikas Gandhi answers, You have to provide salary details of both the employers, consolidate the figures and arrive at taxable income and pay tax on the same accordingly.
sidk asked, Hi, my father's sal is Rs 96000 p.a . He has a demat account with icicidirect . He has earned Rs70000 from shares this year. pls let me know whether he needs to file a tax return for earning Rs 50000 + Rs 96000 or does he have to pay any taxes?. If Yes then can he show any investment to avoid paying taxes.thanks
Vikas Gandhi answers, If your father has earned short term capital gain, he will need to pay tax and file returns. However if the gain is Long Term Capital Gain, the same will be exempt from tax and hence his total taxable income will be Rs.96000/- only and hence he willnot be required to pay tax or file return.
Vikas Gandhi says, That's all for the day friends. Meet you next week. Till then good bye and have a happy week-end.
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