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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?
In an hour-long chat on rediff.com on Thursday, direct tax expert Vikas M Gandhi replied to many such readers' queries. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to this tax chat session.
ind asked, What is the last date of filing returns for individuals? What if I am unable to file return by that date? Please answer..
Vikas Gandhi answers, at 2008-07-17 15:52:30The last date for filing returns for individuals is 31st July, 2008. In case you do not file returns by this date, the implications are as follows - 1. In case of additional tax payment, you will have to pay an additional interest of 1% p.m for late filing. 2. In case of refund, you will be paid interest from the date of filing, instead of from 1st April. 3. In case of unadjusted loss, you will not be allowed to carry forward such loss to subsequent years. 4. On account of late filing, you will not be able revise your return, in case you want to.
sunil asked, sir, i work in delhi with a pvt ltd company and don't avail of any HRA, I wish to buy a residential home in kolkata for my family on loan. Can I avail of any tax benefit of the same??
Vikas Gandhi answers, You can certainly avail of tax benefit. However be careful that the house is in your name and also the loan is taken in your name. For the housing loan taken, you will be able to claim following tax benefit - a. For the interest paid on loan, you will get a deduction of Rs.1,50,000/- or interest paid, whcihever is less. b. For the principal amount repaid, you get a deduction of Rs.1,00,000/- under Sec. 80C (this limit includes other investments also like LIC Premium, PPF etc)
sanjay asked, hi Vikas Due to death of My grand father, my father is getting share of rs 4L . he is a senior citizon with no income. does he have to pay any tax on it??
Vikas Gandhi answers, Any amount received on death of a person is exempt from tax.
Gauri asked, I am a woman and earn Rs 192,000 a year... Do I need to pay tax and file returns?
Vikas Gandhi answers, Since your gross earning is more than the exemption limit, you will have to file your income tax return. As regards whether you need to pay any tax or not, depends on your taxable income, which is calculated after deducting amount invested in tax saving instruments.
Sriram asked, Dear Vikas, I am emploeyd and earn salary. But I also earn as a free lance research professional. How to treat my taxes earned from my free-lance jobs..? Its to the tune of Rs 5 lakhs p.a.
Vikas Gandhi answers, For filing your income tax returns, you will have to find out your net earnings from the profession of free-lance jobs. This means you first deduct all your expenses from the income earned and offer net earning for tax alongwith your Salary income. For this you will have to file ITR-4.
rau asked, hi, i had asked this question before also. can you tell me which form to use to file for compulsory return needed when you own cellphone,house with a particular area etc ,when otherwise you don't have taxable income.
Vikas Gandhi answers, The criteria for filing returns when possess such phone or house was previously existent. However there is no such requirement now. Hence irrespective of what you own, you are required to file return only if your total income exceeds the exemption limit.
max asked, I am putting up in Ghaziabad at my parental resi. Till now i was paying rent to my mom. In last financial yr i have bought another flat on my name, which is 8 km far from my present resi. (a) Can i claim benefit of HRA and Home Loan benefit in sec 80 C both? (b) If i give flat on rent can i get deduction of entire interest from HL from my income?
Vikas Gandhi answers, Your new residence is not that far that you have to stay in another flat on rental basis. Hence in my view you cannot claim both the benefits. If
hii asked, I am filing my return. But I made an investment in HDFC ULIP which I coudnt produce to my company so it is not coming in form 16.Can i avail IT discount for this policy while filing return.
Vikas Gandhi answers, Yes, you can do so. Any deduction which has not been given in Form No.16 on account of non-submission of requisite documents, can be additionally claimed while filing income tax return.
Narendra asked, Dear Vikasji, I have bank a/cs with 2 banks, they issued me TDS certificates. my taxable income is under Rs.150000. could i got TDS back as refund?
Vikas Gandhi answers, To get back the amount of excess tax deducted, you need to file your income tax return.
Rahull asked, Hi Vikas, Last financial year, I made some loss in shares. This year, I have gain. Can I show last year's as well as current year's in my Tax returns? I didn't show loss in last year tax returns.
Vikas Gandhi answers, Since you did not show the amount of loss, while filing last years return, you cannot now claim set-off of against current years capital gain.
shazy asked, Hi Vikas, hope you are doing gud. My question is, I was abroad during savings & HRA proof declarations in my office, Since I could not provide any proofs for HRA & savings, My total taxable income = Gross Income - 9600(travel conveyance) - PF deduction. Can I declare my HRA, Medical Expenses(15000), Insurance premium now while filing IT returns and ask for a refund ?
Vikas Gandhi answers, Yes you can do so. While filing income tax return, you can recalculate your salary income and file return showing correct picture.
Rajib asked, Hi Vikas, Does 80 C also cover the donations made under 80G ? Or 80G is treated separately over and above 1,10,000/1,45,000 of 80 C ?
Vikas Gandhi answers, The deduction you get under sec. 80G is over above the deduction you get u/s 80C. Further the limit of deduction u/s 80C is Rs.1,00,000/- and not 1,10,000/- & 1,45,000/-.
skapoor asked, Hi Vikas, i earn salary and get bank interest on my savings. Is there any exemption for bank interest?
Vikas Gandhi answers, There is no exemption for bank interest. You have to pay tax on your saving bank interest.
Krishna asked, I am a Self Employed Person .Which tax form I must use ?
Vikas Gandhi answers, Since you are a self employed person, you will have to file your return in ITR-4.
plo asked, Sir, I have gross receipt from business Rs. 520000/- and net income Rs. 150000/-. In ITR 4, whether I have to mention that the proper books of accounts are maintained or provide data under 'not liable to maintain books of accounts'?
Vikas Gandhi answers, You are required to mention the correct state of affairs. If you are maintaining books of accounts, mention accordingly and give correct values. If you are not maintaining books, declare accordingly.
spayasi asked, I wish to know work what is the maximum amount which can be claimed for tax rebate for travel to office invilving routine work . I understand that Rs 800 per month are completely exempt. but kindly clarify if through declaration an additional amount can be claimed for Tax Exemption. I understand that there is some provsion in Section 10(14).
Vikas Gandhi answers, There is no such provision in the Income Tax Act. A person cannot claim exemption of Transport Allowance for more than Rs.800/- per month.
Vikas Gandhi says, That's all for this session friends. Chat with you in the next session.