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Some last minute tax-saving tips

March 20, 2009 09:30 IST

It's that time of the year again. Time to get ready with your investments and taxes.

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 there 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 Thursday, direct tax expert Vikas Gandhi offered some valuable tips. Here is the transcript:

Vikas says, 
Good Evening Friends

sivafpe asked, hi, 80 c, 1,00,000 is that inclusive of PF contribution or exclsive of?
Vikas answers,  at 2009-03-19 15:58:37Section 80 C deduction limit of Rs.100000/- includes PF contribution along with all other eligible investments /payments
np asked, Can the monthy Tution fee for two children be added under section 80C for tax savings upto Rs. one lakhs?
Vikas answers, You can claim the monthly Tution fees paid for two children under section 80 C upto the limit of Rs. 100000/-
kjfdflkdsjf asked, Will sale of a property invite a tax on capital gain if the entire amount gained is invested in buying another property?
Vikas answers, If the house property being sold is held by you for more than 3 yrs then the capital gain is longterm and by investing the entire amount in buying another house property the capital gain will be exempt from tax.
Person asked, Hello Vikas, I bought a KVP in my minor son's name in year 2006-07. But i did not showed any accrued interest in my return for 2006-07 and 2007-08. How can i show it in return of 2008-09 ?
Vikas answers, Since you have not shown the interest income on KVP of your minor child on accrued basis you can declare the entire interest on maturity basis in the year of maturity, provided you follow the this method of declaring income on receipt basis (maturity) for all his income from other sources.
Prashant asked, Hi, I have about Rs. 2 Lac as taxable income. Can i gift some amount to my mom and will this amount will be detected from my taxable income. Thanks
Vikas answers, By gifting an amount to your mother from taxable income you cannot claim any deduction from your taxable income.
Selvan asked, i have invested 90k in the year 08-09 but i have not declared to my employer can i claim the tax benefit at the time IT filing??
Vikas answers, You can claim the deduction while filing your tax return although you have not declared it to your employer. Please note the TDS deducted by your employer if excess due to above reason then the tax calculations made for IT return will result in to a refuns.
sameer asked, my employer asked for the proofs in January itself. The interest that I paid on my education loan from the month of January to March is not being taken into account while calculation TDS. Can I claim it while filing return?
Vikas answers, Yes you can claim this while filing your return.
Person asked, Sir, Whether Interest accrued on NSC can be shown as reinvested under 80C ?
Vikas answers, You can claim the accrued interest on NSC as reinvested under 80C upto the fifth year only.
chaliyathsanju1@rediffmail.com asked, can the housing loan intrest paid can be claimed separately other than the 100000 meant for 80 C deduction.
Vikas answers, Interest paid on housing loan is not covered in the 100000/- limit of 80C, only the principal repayment amount is covered here. The interest has to be claimed under Income from House Property.
VG asked, DEAR SIR, I HAVE TAKEN A SECOND HOUSE ON JOINT NAME WITH MY WIFE (SHE IS A HOUSWIFE) CAN I CLAIM THE COMPLET TAX EXEMPTION ON THE INTEREST COMPONENT ??
Vikas answers, Yes you can claim the amount of interest component paid towards the second house under Income from House Property, provided you make the payment for the same and not your wife.
mmm asked, i have invested just Rs. 35k in ppf this year. being a self employed professional, i just realised now that i am receiving Rs. 2lakh more before march end. this will take my income into tax bracket. how do i invest rest of 65k? i am 33 years married without any children and plan to have family in next two years.
Vikas answers, Since the current financial year has still not ended you can invest the balance amount of 65K into any tax saving schemes before 31-3-09 eligible for deduction under 80 C. Note you can only deposit another 35K in PPF since PPF restricts deposit upto 70K in a year. You can look for Life Insurance option if not done so far.
sunil sood asked, Hi can u tell about the FORM 26AS...it talks about tax credits and i have recvd it on email from tax deptt
Vikas answers, By this FORM 26AS the IT dept is informing you the tax credits received by them towards your PAN. If there is any dscripencies then you need to follow the guideline mentioned in the form & take action. For e.g.it does not show a TDS amount which has been deducted on some interest income or the amount is different in such a case you need to contact the person deducting and ask him to revise his TDS return, else the credit for that TDS will not be granted to you.
Vikas says, Thats all to the day, Thank You