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?
Direct tax expert Vikas M Gandhi replied to many such readers' queries during a chat on Thursday. Here is the transcript:
Vikas Gandhi says, Good evening friends and welcome back to the tax chat session.
Surabhi asked, Hi, I have an income of 3 lakhs form salary and 5 lakhs from business ( commissions from network marketing). How do I file my taxes. When I had only the business income I had a profit and loss statement where I could shoe expenses incurred, whatis the way out now.
Vikas Gandhi answers, at 2008-08-21 15:43:51For filing your income tax return, you can claim expenses against business income of Rs.5 lakhs and pay tax on the net profit. Prepare Profit & Loss account accordingly. Show your salary income under Capital Account, so that there is no confusion between business income and Salary income. You will have to file ITR-4 for filing income tax return.
Prasad asked, Housing loan interest kept upto 1.5L, anyother way we can show the remaining interest paid as tax deductabile
Vikas Gandhi answers, The amount of Rs.1.5 lac is the maximum limit. You cannot claim interest paid as deduction over and above this limit.
gargnanu asked, is the dividend from mutual funds tax free?
Vikas Gandhi answers, Yes, Dividend received from Mutual fund companies are exempt from tax.
vn asked, Hi Vikas, If I sell land and use it to build a house on another plot of mine, will I be liable to Capital Gains ?
Vikas Gandhi answers, Yes, if you intend to use the sale proceeds for construction of a residential house, you will be eligible for exemption from Capital Gain u/s 54F. However in such case you will have to deposit the entire amount in a Capital Gain Account Scheme.
Kabbur asked, Hi vikas i want to know wheather we can reimberse the medical expenses if Yes is there any limit for salary employee
Vikas Gandhi answers, A salaried employee can claim reimbursement of medical expenses from his employer to the extent of Rs.15,000/- per annum, on which no tax will be levied. However reimbursement of medical expenditure depends upon the company policy and salary structure designed.
rajpraj asked, Is there tax exemption for purchase of land ?
Vikas Gandhi answers, There is no tax exemption available for purchase of land
ajit asked, can we convert conveyance exp. as scooter exp. to save FBT?
Vikas Gandhi answers, While determining FBT liability it is not the nomenclature that matters, but it is the nature of expenses that goes to determine whether FBT is liable or not. Hence whether the expenses is named as conveyance expenses or scooter expenses, FBT will be levied as far as the expenses has been used for conveyance.
thatsamit asked, I wish to purse a part time MBA course for which i need to pay 63000/- yearly as my tution fees. Can i get the benifit in income tax for the above said amount?
Vikas Gandhi answers, Tuition fees paid for children is eligible for deduction. Unfortunately tuition fees for education of self is not deductible and hence you will not be able to claim such deduction.
pradeep asked, house wife having agricultural income of about 50 to 60 thousand a year besides rental income of Rs. 24,000/- pa does she have file a return if so the ITR No. does the exemption of 145000/- not apply to her what king of other exemptions is she eligable
Vikas Gandhi answers, Since the taxable income of your wife is only Rs.24,000/- p.a., she
is not required to file her income tax return.
83Sunny asked, Hi Vikas. Currently my company gives me whole Rs 30000 per month salary as basic salary. But i stay in rented house in mumbai. Can I claim HRA even though it is not the part of my salary
Vikas Gandhi answers, If there is no house rent allowance given by your employer in the salary structure, you cannot claim exemption for the same. Alternatively you can claim benefit u/s 80GG, if conditions mentioned in the section are satified.
deepakk asked, i have made a loss of Rs 4 lakhs in F&O during jan-feb 2008 is there a way i can carry forward this loss to the next yr so that it can be adjusted against the profit (if any ) in current financial yr
Vikas Gandhi answers, Loss incurred in F&O transaction is considered as Speculation loss and this loss can be carried forward to subsequent years, provided you file your return within the due date. From your query it seems that you have not yet filed your income tax return and assuming that your due date of filing was 31/07/2008, you have missed the date and hence you will not be allowed to carry forward such loss.
Nirajkumar asked, What is the last date for filing Income tax return.SOmeone has told me that last date is up to 31 Mar.2009 for FY 2007-2008.
Vikas Gandhi answers, The last date for filing income tax return is 31st July, 2008. If you have missed this date, you can still file the return, but in that case you have to pay late filing interest. A person can even file return after 31st March, 2009, but in such an event in addition to late filing interest, he may be penalised upto Rs.5,000/- by the Assessing Officer.
vp asked, I am holding shares worth 1lac since April08. Which ITR form to be used.
Vikas Gandhi answers, ITR Form is decided upon the nature of income you had during the year and not on holding of shares.
George75 asked, Hi Vikas, Please let me know what are the tax implications for a houseowner, who has rental income of 100000 only and no other income. If such a person does not file returns, is it OKAY?
Vikas Gandhi answers, If you have only rental income which totals to Rs.1,00,000/-, then you are not required to file income tax return as per the Act.
gsn murthy asked, Hi vikas, Good afternoon ! I have two houses, i have taken the housing loan for both the houses, in which i am satying in one and other one is let out property. I am paying the intersts Rs.1,95,000 for intrest can i avail the benefit for whole amount or Rs.1,50,000 ?? Kindly suggest.
Vikas Gandhi answers, Since you have taken home loan for both the properties, the implications will be as under - a) For the property that you use for your own residence, you can claim interest deduction upto a maximum limit of Rs.1,50,000/-. b) For the property that has been given on rent, there is no limit for interest payment and hence entire interest paid for the rented property can be claimed as deduction.
MANOJNAIR asked, My brother is handicapped, I need to support him. I have income from profession, I am not salaried. How can I take advantage of the situation?
Vikas Gandhi answers, If your brother is totally dependant on you, then you can claim deduction u/s 80DD of the Income tax Act. However for this you will have to obtain a certificate in Form No.10IA from a prescribed medical authority certifying the extent of disability.
tax_plan asked, Good afternoon Vikas, If I take home loan from bank, my mother and brother, and pay all of them interest and principal amount, can I claim tax exemption on the total amount?
Vikas Gandhi answers, As far as interest is concerned, you can claim the entire interest payment (upto Rs.1,50,000/-) as deduction. However principal amount repaid to bank will only be eligible for deduction u/s 80C.
Vikas Gandhi says, That's all for this session friends. Chat with you next week.
