Rediff On The NeT: Tax Q & A


	HOME \| MONEY \| TAX \| Q & A

October 1, 1999

NEWS
COLUMNISTS
STOCKS
MUTUAL FUNDS
TAX
INTERVIEW
REAL ESTATE
GOLD
CURRENCY

Did you miss the Sept 30 tax deadline?

The Rediff Money Channel presents everything you wanted to know about tax issues but didn't know whom to ask. Tax counsellors Ganesh Jagadeesh & Co are here to remove all your doubts.

Q: When is the last date for filing of returns for a salaried employee?

A:The due date for furnishing the Income Tax return for salaried employees is 30th June of the relevant assessment year as laid down under Section 139(1) of the Income Tax Act, 1961. This year it was extended upto 30 Sept.

Q:My salary is Rs.250,000 p.a. and my wife earns a salary of Rs.150,000 p.a. Which are the forms to be used for filing our respective returns?

A: Rule 12 of the Income Tax Act, 1961 lays down the forms that can be use for filing of Income Tax returns.

In case of resident assessee having no business income and whose total income does not exceed Rs.200,000 ---- Form No. 2A

In case of resident assessee having no business income ---- Form No. 3

The assessee shall also have the option of filing the return in Form No. 2D (SARAL)

Q:What is the amount of Standard Deduction allowed on salary income?

A:Under Section 16(1) of the Income Tax Act, 1961 the amount of Standard Deduction allowed on salary income, before allowing a deduction under this section is as under a) If the salary income does not exceeds Rs. One Lakh, a deduction of a sum equal to thirty three percent or Rs. Twenty five thousand, which ever is less. b) If the salary income exceeds Rs. One Lakh but does not exceed Rs. Five Lakhs, a deduction of a sum equal to Rs. Twenty thousand.

Q:How are assets classified as short-term and long-term capital assets for the purpose of computing Capital Gain tax?

A:The I-T Act defines a short-term capital asset, as a capital asset held by an assessee for not more than 3 years immediately prior to its date of transfer. However, in the case of equity/preference shares, securities (debentures, Govt. securities listed on recognised stock exchanges), units of UTI and units of mutual funds specified u/s 10 (23D), the period of holding the asset should not be more than a year. All assets other than short-term capital assets are regarded as long-term capital assets.

Send in your questions to money@rediff.co.in

Tell us what you think of this report