So what kind of investment did you make to save tax? Is there a better way to save taxes? What investment options should you go for this year? What should you do to bring your tax liability to the minimum level?
Direct tax expert Vikas M Gandhi replied to many such readers' queries during an hour-long chat on Thursday. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the tax chat session.
hiren asked, My dad is 66 yrs retired and mom is a house wife. They dont have any income. He got his Foot operated last year and cannot walk independently. You can consider him as a handicapped. He has to walk with the help of my mom and a Stick. There is lot of expenses for the medicines for my dad. Not a problem at all for us. We are 2 brothers, I give Rs. 8000/- and my bro gives Rs. 10000/- per month so that they can manage their expenses. Can we get some tax benefit on it? I heard in one of programs on TV, that we can get some tax benefit under section 80U or is there any other way we can get tax benefit.
Vikas Gandhi answers, at 2008-02-21 15:57:43Certainly there is a benefit available u/s 80U, but only if you yourself are handicapped. In your situation, you father is facing this situation and not you. However you can take benefit u/s 80DD. However for this you first need to find out whether your father can be considered as physically handicapped as per Income Tax Rules. You will also need to get a certificate in Form No. 10-IA from a authorised doctor certifying the facts.
pankaj asked, In case IT refund is not received in a period of 1 year , whom to complaint ?
Vikas Gandhi answers, In such case you need to contact your Income Tax Officer and if need arises, you can send your grievance to the Commissioner of Income tax with all the facts mentioned. You can also use the Right to Information Act to find out why your refund hasn't come to you.
Bidhu asked, Does taking any personal loan from a bank help in saving tax?
Vikas Gandhi answers, No personal loan does not help in any way for saving your taxes
rusha asked, Hi! My question is - My father has lost almost eyesight and his vision is also worst at 1 feet. He is 80. Can I claim exemption under Section 80DD. If yes then which are the documents I have to preserve or produce while filing my returns? What will be the amount which I can claim ? Monthly medical bills for the medicines for his eyes should I produce ?
Vikas Gandhi answers, For claiming deduciton u/s 80DD it is not the amount that you spent which matters. the only thing that matter is the person should be handicapped and that he should be your family member and totally dependant on you for survival. the amount of deduction is either Rs.50000 or Rs.75000/- depending upon the severity of the handicapped. As far as document is concerned, you will have to take a certificate in Form no. 10-IA from the authorised doctor certifying the extent of handicapped.
Raghavan asked, Cap gain tax query I have bought a Flat for Rs 2.25 lacs in 1991-92 AY. I want to sell it now . I may get about 8 lacs .I have spent about 30,000 once for repairs in 1998 and another 55,000 in 2005 for grills, doors and window shutter modification etc. I have not preserved the bills for the work carried out. I do not have a taxable income now. How much is the capital gains tax I may have to pay if the sale is materialized and what are the legal ways available for avoiding the payment of Capital gain tax other than investing in another property ?
Vikas Gandhi answers, Of course there will be capital gains on sale fo such property. For knowing how much capital gains you can use any of the calculators available on various tax related sitre which helps you in calculating such gains. www.taxsmile.com also has such calculator, if required. To save tax on such capital gain you can invest in Capital Gains Bonds issued by NHAI or REC. This is the only option if you don't want to invest in another property.
ac asked, if my salary income is 8 lacs, what r the investemnts options to save tax ? I am investing about 60k in insurance, 1lac in housing loan re payment, 25k in ppf.
Vikas Gandhi answers, You have alreday exhausted the limti of Rs.1,00,000/- available in section 80C for claiming the tax benefit. Besides this there is no major tax saving available to a salaried employee.
sanshar asked, hi Vikas. I want to invest 48000 in tax saving fund. my question is 1.- should i invest in one fund? 2.- fund advise by you?
Vikas Gandhi answers, By tax saving fund, if you mean Mutual fund, it is always advisable that you invest in multiple mutual fund instead of investing entire amount in one mutual fund
rrrrrr asked, Whether dividend from any tax saving scheme is included in total gross income for taxation?
Vikas Gandhi answers, In normal scenario, dividend is not taxable in India, as far as the fund is an Indian fund and they have paid dividend tax.
Bhaskar asked, In this financial year, I changed my company. While changing, I paid around 60K to my old company which I claimed from my current company. But, my company cut the tax amount and gave me since it is income to me. Can I show my paid amount to old company in filing returns as "Loss of Income"?
Vikas Gandhi answers, No you cannot do so. it is not a loss as per Income Tax Law.
ranjita asked, Int.on NSC is taxable,U/s 80C should we consider interest income as an investment if so interest on NSC is subject to TDS deduction.How to claim refund back.Int income where to Show in It return
Vikas Gandhi answers, NSC interest is taxable and at the same time you can also claim the same as deduction u/s 80C,
since the interest amount gets reinvested. However this will hold good only for first five years of NSC. If you are offering interest as income after maturity then you cannot claim deduction on account of NSc interest. In the Income tax return, there is specific column for interest income under Income from Other Source, where you have to show all interest income.
Mahesh asked, Hi Vikas,I have a Doubt can you please solve it.Suppose i have Home in Coimbatore,TN and i am working in Mumbai paying Home Loan for that house i am staying in rent in Mumbai.So is there any clause where i can get IT Deduction for both of these spendings.
Vikas Gandhi answers, Yes, in my view you can claim both the deduction on account of housing loan and also on account of House Rent Allowance.
sivakumar asked, Say i am buying a house with my father as co-owner. after occuping a house with my father, i am paying rent to my father. Now can I claim both HRA and Housing loan benefits ?? Please Clarify.
Vikas Gandhi answers, No you cannot claim both the benefits, because you are co-owner of the property. You will be able to claim only deduciton on account of Housing Loan interest. and not for HRA.
praks asked, bought shares 8 yrs back. what is long term tax if I sell it now.
Vikas Gandhi answers, There will be no tax on the profit you earn, provided you sell such shares in the open market thorugh a broker.
thomas asked, hi i have to invest another 40K can you please suggest me where to invest
Vikas Gandhi answers, In case you would lik to claim beneifit of Section 80 (c) you can invest in PPF, NSC, Term Deposit with bank, ULIP, ELSS, etc. This you can invest maximum upto Rs.1,00,000/-
NIPA asked, In 07-08 IT Return, MIS Income will consider as Taxable Income for a Senior Citizen ?
Vikas Gandhi answers, If MIS related to post office scheme then it is taxable. If this monthly scheme relates to UTI and same is administered by Adminstrator then it is exempt.
vecham asked, Is there any I can save tax on the intrest paid on personal loan?
Vikas Gandhi answers, There is no tax saving on interest paid for personal loan.
JARYAKUMAR asked, Tution Fees are tax EXEMPT FOR 2 CHILDREN.Under What section and is there a MAXIMUM AMOUNT
Vikas Gandhi answers, Yes. Tution fees is emempt for 2 childeren. There is no cap. Th;is deductins is available upto Rs.1,00,000/- U/s.80C alongwith other investment altogether.
raj k asked, Hi Vikas, My salary is 15000 Pm while my Basic is 12,000 and HRA is 3,000. Plz let me know would be my tax liability.
Vikas Gandhi answers, There are many online tax calculators available for calculating deductions for HRA on various tax sites. We require other deails for calcuating such deductions.
deeeee asked, I am working on contract basis with a co and getting the compensation as lump sum amount, please suggest in which form I should file the return, though theuy are deducting the TDS on income
Vikas Gandhi answers, This income will be consdired as your business income and accordingly you are required to file ITR-4 (based on the returns publisehd for assessment year 2007-08)
PG asked, The property is in the name of wife (non-working) but loan is on husband's (working) name and husband is paying the instalments without any problems. Can wife claim tax benefits on the loan interest amount?
Vikas Gandhi answers, Since intsalment repayment is not made by wife. She can not claim deductions for interest amount.
LM asked, If I receiv 300000(through Bank Funds transfer or Cheque) amount from my friend account, there will be any tax implications
Vikas Gandhi answers, If the amount is received as gift from your friend then the same is taxable. The entire amount will be taxable under the head 'Income from other Source".
parul asked, hi Vikas,i m staying in a rented house and i also have a house on my name in the same city.....can i claim both HRA rebate and tax exemption on house loan benefits?
Vikas Gandhi answers, No. you can not came HRA beneifts. Beneifts u/s.80C is available for repayemnt of loan upto maximum of Rs.1,00,000/-
rakesh asked, hi sir, how to claim for tax refund
Vikas Gandhi answers, File first Income-tax return in case if you have not filed. Then apporach your Assesing Officer if the same is not received.
DDJDEL asked, Hi, I have book Flat, and the possession will be in next 30 months, I have made the payemnet th. Bank loan and have started paying EMI on the same, Will I get the benfir on the Int. & Prin paid before possession period. Pls confirm
Vikas Gandhi answers, Yes. Amount of interst paid prior to the acquistion or construction of the proeperty will be deducted in 5 equal instalments commening form year in which possesssion is taken.
ruy asked, I am a visually handicapped (40%)...can I have some Tax benefit..are there any conditions on it.
Vikas Gandhi answers, Yes. You can claim deductions of Rs.50,000/- under Section 80U. You are required to submit certificate in Form No.10-IA to be obtained from authrised doctor.
Vikas Gandhi says, That's all for the day, friends. Meet you next week. Till then good-bye.
Chat with Vikas every Thursday at 4 pm
(Due to circumstances beyond our control, date and time of chat may change)
