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10 important income tax queries (India) answered

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It is income tax filing season and everyone must be having queries or questions on income tax returns and income tax filing.

Here are some income tax queries in India answered. This is only in the Indian context and should not be used as income tax queries for other countries.

Let us know if you have any other clarifications and we will be happy to answer them for you.

Query 1

Can money paid to your employer for serving notice period be excluded for calculating one’s net taxable income ?

Answer : No, while calculating the net taxable income, the employee cannot get rebate for notice period payment served with the employer. Whatever money has been paid to the employer is actually taxable.

Query 2

Suppose you have two DEMAT accounts. One has your wife’s name on it along with yours, so essentially it is joint. The other has only your name on it. If you were to transfer shares from the first to the second, will you attract any capital gain tax?

Answer : You will not attract any capital gains tax if no money has been paid for the transfer, i.e., the transfer will be considered as a gift from your spouse, which is tax-free. It will be taxable for the individual who purchased the shares that are now being transferred.

Query 3

You have two houses. One is rented out while the other is self-occupied. The self occupied one has a home loan on it which fetches a tax deduction of Rs 1,50,000 on the interest paid. Will you get a higher tax benefit if you were to rent out this house too?

Answer : Yes, in case of a rented house, one can claim the total interest accrued for the year as a deduction and there is no upper limit. Rs 1,50,000 is the limit for a self-occupied property only. Note we are taking about interest portion of the loan only and not principal here.

Income-Tax-Queries

Question 4

You are  irregular in filing your income tax returns though your income tax returns has been deducted at source for all years. What can happen ?

Answer : The I-T department can ask for records of the previous six years preceding the relevant financial year. Not filing returns can attract a penalty of up to Rs 5000. If there is any undeclared income, then the penalty varies between 100% to 300%.

Question 5

You are salaried and TDS has been deducted from your salary. But you did not get your Form 16. So you do not know whether tax has been deducted and paid to the IT department or not. What do you do ?

Answer : You can view your tax credit on form 26AS on the I-T department’s website. If the tax has been deducted and not deposited, then first  write to your employer to correct this. In case no action is taken by your employer, write to the I-T department.

Question 6

You have bought several equity diversified mutual funds through SIPs over the last few years. If you sell these, how can you classify the capital gains (short term or long term) for tax purposes?

Answer : All SIP investments are treated separately for tax purposes. If you sell now and the profits from equity investments are more than a year old, then they are treated as long-term capital gains and are exempt from tax. However, if the gains from SIPs are made in the past 11 months, these will be taxed at 15%.

Question 7

You did not file your tax by 31 July.  Can you file a delayed return to get a refund, if applicable ?

Answer : You can file delayed returns for up to two years from the end of the financial year. If all the taxes have been paid or deducted then you will not have to pay a penalty but you will not be eligible for a refund.

So essentially, you can claim a refund only if you have filed your return by the due date, that is, 31 July.

Question 8

You are a NRI and have a bank account in the country abroad. Is the interest earned by the deposits in this account taxable in India?

Answer : The interest earned by your deposits in the abroad bank account will be taxable in India only if it has been received in India. If the interest has been credited to your abroad bank account, the interest will not be taxed in India, it will instead be taxed in the country abroad.

Question 9

If you gift your wife some money and she invests it in shares, will the capital gain be treated as hers or mine?

Answer : If you gift money to your wife and she invests it, the capital gain from the investment will be clubbed with your income and you will have to pay tax on it.

Question 10

You want to gift your wife some shares. Will either of you have to pay income tax? If your wife sells these shares, how will the profit be taxed?

Answer : You will not have to pay tax when you transfer/gift shares to your wife. The shares can be transferred from your demat account to your wife’s demat account. You should prepare a gift deed listing the shares and their present value. If your wife sells these shares and earns capital gains, the profit will be treated as your income.

222 Comments

  1. Really nice post on Income Tax return and very informative.Filing of Income Tax Returns could be quite a task for many, owing to plethora of paperwork and lengthy procedures.CCH India releases a complete guide to Frequently asked Questions on Income Tax & Wealth Tax. CCH India, a Wolters Kluwer company is the leading publishing and information services provider for Tax, Accounting and Legal professionals. CCH publishes a range of books in areas like Tax legislation, Accounting, Corporate Law and Management.

    Thank You

  2. Atanu

    July 21, 2011

    Post a Reply

    I have an account on my spouse name.
    Every month I transfer money from my salary account to my wife’s account and the money remains idle there earning savings interest.

    Now do I need to show that interest income in my tax return???

  3. SL Narayan

    July 24, 2011

    Post a Reply

    Is Risk related allowances (like Flying allowances) taxable?

    If not, under what section of IT Act can I claim exemption?
    Regards

  4. a.fakruddin ahmed sayeed

    July 26, 2011

    Post a Reply

    Hi ,

    I have filed it for the Financial year 2009 -2010, in which i have to get a refund of Rs- 6749 dated – 13/7/2010 .

    but so far i have not received the refund inspite of of several e- mail, i have forward from my end ,

    Kindly look in to this and do the neeedful.

  5. VS

    August 22, 2011

    Post a Reply

    Can the “credited amounts” shown in the TDS Certificate be assumed as the ‘official’ figures as earnings or are the entries in the bank Pass Book more relevant? At times entries in the TDS Certificate and the Pass Book do not match and it is difficult to get banks to make amendments to the TDS Certificate. A case may occur where the bank has shown higher earnings in the TDS Certificate and thus the TDS will be higher too. If the Pass Book has the correct entries and shows lower earnings then we are losing due to excess tax being deducted.

    Thanks in advance.

    • Radhey Sharma

      August 31, 2011

      Post a Reply

      @VS, I think this is a question more for the Chartered Accountant / Tax Consultant.
      I am not aware of the answer. If you get to know, please let us know as well.

    • Praneet Bajpaie

      April 7, 2012

      Post a Reply

      Please go by what you bank Pass Book says. TDS certificates should only br relied on for TDS and nothing else

  6. Damodaran nair

    September 20, 2011

    Post a Reply

    My daughter is getting married next month. I have to purchase some gold ornaments. Please let me know if I am eligible for any exemption from Income tax. If Yes, then how much. If No, then why not eligible.

  7. Krishna

    November 3, 2011

    Post a Reply

    How to Gift a money to my Spouse (To avoid further tax). Is there any specific procedure is there? Or directly can I transfer to her bank account (Through NEFT or by cheque)

  8. Ramamurthy

    November 5, 2011

    Post a Reply

    I transfer some money from my SB a/c to my wife,s SB A/c.She invests the money in FD and earns interest. I include this interest in my IT return as my income. OK?

    • Praneet Bajpaie

      April 7, 2012

      Post a Reply

      yes you are doing the right thing or you can show this transfer as a loan and show the income as your wife’s

  9. bhavesh

    December 1, 2011

    Post a Reply

    i had some IT refund pending from 2006-07. i got it last month, the interest that they have paid is only for the period till aug 2008. according to them, they assessed on that day.
    when they have prepared my cheque on 01.11.11, shouldn’t they be paying interest for remaining period. i got the amount only when i threaten them of giving an appeal via RTI. advice me what should i do?

  10. Rohit

    December 27, 2011

    Post a Reply

    for The Purpose of Section 80DDB, as per IT Tax Act, Goverment Hospital means ” Government hospital” includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospita l maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants”

    So, any private hospital, where govt employees can get treatment under CGHS, comes under above defination

  11. Ashish Kumar

    January 9, 2012

    Post a Reply

    I have a query regarding this HOUSING RENT ALLOWANCE scheme for employees

    Let me give you a brief intro so you can und the situation in a better manner:

    I am a student studying 1st yr engineering and overseeing my aunt’s flat because 2 months back she went overseas to see my uncle who is an NRI

    My aunt is a housewife with local resident status(not NRI) and the flat is on her name i.e. she owns it

    As of now my aunt has leased her flat to 3 men all of them are salaried emplooyes and give a combined rent of 27,000 per month via NEFT to my A/C(the payment is done by 1 of the men).

    Now they want my aunt’s PAN NO. to claim HRA from their respective companies

    My questions are
    1. Is it safe to give PAN NO?
    2. Will my aunt have to file income tax eventhough she is a housewife , also when these 3 claim for HRA

    will the fact be considered that indvidually they pay 9000 pm each which is less than 1,80,000 annaully (for which I heard tax is NIL under HRA to paid by my aunt)
    OR
    will I.T. consider the net rent which I get (27,000 pm i.e. 3,24,000 anually)

    pls guide me Iam confused

    Thanking you and very happy new year,

    Ashish Kumar

    • Radhey Sharma

      January 9, 2012

      Post a Reply

      @Ashish Kumar, Are you worried about your aunt or the 3 gents staying on rent ?

      Employers ask for PAN of landlord so you need to furnish it – note that if a formal registration was done by your aunt, then the xerox of the PAN would be in there so the gents already have the PAN with them :-)

      Your aunt will have to file IT returns depending on what her income is along with what she is earning as rent. Do not get confused by your aunt paying rent with the HRA the gents are claiming – both are separate transactions.

      You aunt receives 27,000 * 12 as rent and that needs to be taken into account and not 1,80,000.

      Hope this helps.

    • Jaswinder Singh

      January 10, 2012

      Post a Reply

      @Ashish Kumar, I would strongly recommend that you consult a CA and sort this out ASAP. If you guys have not being paying the taxes, the IT department can literally impose a hefty fine for the cumulative amounts earned till date – and that would be a significant financial hit.

  12. Ashish Kumar

    January 10, 2012

    Post a Reply

    thanks for your timely response I highly appreciate it

    but in this case as mentioned in previous question my aunt is housewife(non earning) the only thing is that the flat is on her name (the agreement mentions her as the landlord)

    so does she still have to pay taxes even though she is not working and just owns the flat which is on her name

    • Jaswinder Singh

      January 10, 2012

      Post a Reply

      @Ashish Kumar, Income received from any source is liable for taxation. Irrespective of whether a person has any other source of income or not, any amounts earned by means of rent do qualify as “income” and is subject to Income tax.
      Essentially, your aunt would have to pay income tax if the total rent received by her (minus the expenses she incurs on maintenance of the flat) exceeds the “no-tax” bracket.

    • Manickkam

      January 11, 2012

      Post a Reply

      @Ashish Kumar, In my view, your aunt is getting 27000 monthly income as rent and she is providing that as gift to you. It has nothing to do with whether she is working or not.

      It is her income. If she has a PAN card furnish it or otherwise declare that she doesn’t have a PAN card.

      Your aunt’s total income is Rs.3,24,000 and is well above the limit of 1,90,000 per annum and tax has to be paid. Tax comes to be Rs. 13,400/-
      There are various investments and ways to avoid tax. For that, you need to consult the tax consultant.

  13. Rakesh

    January 10, 2012

    Post a Reply

    Ashish,

    As the payment is done to your account, it would term as an income to you and you would have to pay tax. You would have to do an arrangement between you and your aunt on it. As Jaswinder mentioned, a CA would be in a better position to guide you.

    Rakesh

    • Radhey Sharma

      January 11, 2012

      Post a Reply

      @Rakesh, Oh I missed the point that the income comes to your account. This deserves a tax consultant please !!

    • Jagadish Kumar

      October 8, 2012

      Post a Reply

      If your aunt not paid tax on her income during that particular assessment year, the income tax department may ask you to pay tax as you are the beneficiaries of that income. It’s advisale that your aunt should pay tax on that and furnish PAN if she has no PAN apply for that

  14. aspi doctor

    February 22, 2012

    Post a Reply

    I have been filing regular I.T returns and been assessed till last year. For how long should I keep the vouchers and receipts of previous years. My cupboard is full.

  15. Fedlese

    February 25, 2012

    Post a Reply

    Hi,
    I have following queries,

    1) What is the best way to gift money to my wife (to avoid tax) like by cash or bank transfer?
    2) If by cash do I need to get any receipt for the same?
    3) What is maximum tax exemption I can get from this?

    Thanking You in advance

    Fedlese

    • Praneet Bajpaie

      April 7, 2012

      Post a Reply

      Please use bank transfer. Cash involves a lot of hassles.

      You wont get any tax exemptions but your wife wont have to pay any tax for the gift(s) received.

  16. Deepali

    February 26, 2012

    Post a Reply

    Hi,

    I am buying a property owned by an NRI through his constituted attorney. I have the following queries:

    1. If the sale deed and financial transaction is done with the attorney instead of the NRI owner, will the sale be valid?

    2. If the money is transferred to the attorney’s account (who is an Indian resident), what is the short term gains tax liability for the buyer?

    Thanks in advance.

    Deepali

    • Radhey Sharma

      February 26, 2012

      Post a Reply

      @Deepali, You probably need a real estate lawyer and an IT tax consultant.
      This is a very niche question.

    • Praneet Bajpaie

      April 7, 2012

      Post a Reply

      1) If the Indian citizen has a registered Power of Attorney authorozing him to sell the property, only then will the sale be valid.

      2) Capital Gains arises with respect to the seller, not the buyer.

      • Vivek K

        April 8, 2012

        Post a Reply

        What if someone sells the property with power of attorney and transfers money to the NRI?

        • Praneet Bajpaie

          April 9, 2012

          Post a Reply

          The NRI has to pay the tax as Income is accruing/arising in India. Hence Taxable in India.

    • Chirag

      April 7, 2012

      Post a Reply

      Deepali better you stick to Radhey’s advice at least on first point. There are judgements even from supreme court denying the similar kind of deeds, as we are not expert always good to have lawyer for it.

  17. Janardhanan

    March 13, 2012

    Post a Reply

    I seek opinion on the following property transfer.

    Mr. A and Mrs.A are the joint owners of a property P(comprising of 2 plots of equal size, 1 plot in the names of Mr. and Mrs.A and another plot in the sole name of Mrs.A) purchased in the year 1999 for Rs. 23 Lakhs. Mrs.A has 75% share in the whole property and Mr. A owns only 25% share in the property. Mr. A is no more. Their 2 daughters have given PoA favouring Mrs. A for sale/alienation of the property. Now Mrs. A wishes to acquire 100% share in the whole property by utilizing the PoA. Assuming that the total Guideline value of the property is Rs.50 lakhs and Mrs. A would like to initially create a sale transaction favouring her brother Mr. B for a sale consideration of Rs.10 lakhs only. Mr.B is a pensioner receiving a average pension of Rs. 2 Lakhs per year and is a senior citizen.Hence he is not liable to pay any IT. On the basis of this sale deed, Mr.B wants to register a Settlement Deed in favour of his sister Mrs. A by which transaction Mrs. A will be holding absolutely 100% share of the property. Please enlighten the tax implications of the 2 transactions.

    Thanking You

  18. Raj

    March 13, 2012

    Post a Reply

    Dear Sir,
    I have filed my tax return for last 2 financial years (2009-10 and 2010-11) within the specified timeline but I have not furnished ITR-V to Income-Tax department for acknowledgement and already missed the timeline. Could you please tell me whether I can send the ITR-V to IT department now? Whether IT department will provide the acknowledgement now? If not, what can be done for getting the acknowledgement?

    Regards,
    Raj

    • Rakesh

      March 18, 2012

      Post a Reply

      @Raj,

      According to me a tax consultant will be in a better position to help you. But let’s wait to here what other experts have to say.

    • Praneet Bajpaie

      April 7, 2012

      Post a Reply

      Tough to say. Send them the ITR V and hope they take it is all I can say.

  19. santhosh

    March 16, 2012

    Post a Reply

    Hi all,
    If i transfer equity shares to my wife’s account and she sells it later, is there any tax to be paid?
    What about the future earnings from this realised amount(suppose she makes FD)? should it be clubbed to my income?

    • Radhey Sharma

      March 18, 2012

      Post a Reply

      @santhosh, Tax will need to be paid by someone, either yo or her, it cannot be avoided. Let me do an article on this.

      • Rakesh

        March 18, 2012

        Post a Reply

        @Radhey,

        That will be great, i know few people who have given shares as a gift to their wives to avoid paying taxes.

        • Rakesh

          March 19, 2012

          Post a Reply

          @Vivek,

          Long term capital gain is tax free as of now, Who knows in years to come the FM may tax it.

    • Rakesh

      March 18, 2012

      Post a Reply

      @Santosh,

      Have you given these shares as a gift or just opened a new account in your wife’s name and transferred the shares? In case of FD no tax has to be paid if the interest earned in less than 10,000 per year.

        • Rakesh

          March 19, 2012

          Post a Reply

          @Vivek,

          No, my co-op bank does not deduct any TDS if the interest earned is less than 10k.

          • Vivek K

            March 19, 2012

            @Rakesh, I also found out that if you don’t want TDS to be deducted by any bank you need to fill some form and submit and bank will stop deducting the TDS.

          • Rakesh

            March 19, 2012

            @Vivek,

            Yes, these forms are 15G and 15H. 15H is for senior citizens and 15G is for everyone whose income is below the taxable limit.

          • Vivek K

            March 19, 2012

            @Rakesh, Correct, I really like this, once can avoid TDS and unnecessary hassle with IT department for refunds.

          • Rakesh

            March 19, 2012

            @Vivek,

            Yes, following up with IT department for refund is pain. I make sure to fill form 15 H for may family members at the time of opening the FD.

          • Vivek K

            March 21, 2012

            @Rakesh, You are a smart investor Rakesh. I should start doing the same.

          • Rakesh

            March 21, 2012

            @Rakesh,

            Still learning, long way to go.

          • Vivek K

            March 19, 2012

            @Rakesh, Good to know about unique attractive features of co-op banks.

          • Rakesh

            March 19, 2012

            @Vivek,

            Some co-op banks are good, even though they are small they have some good features. Your work gets done faster and they have interest rates slightly higher than nationalized banks.
            Recently YES Bank raised interest rates for savings accounts to 7% for customers having balance over 1 lakh.

          • Vivek K

            March 21, 2012

            @Rakesh, Yea, heard about YES bank. The interest war is going to be interesting now.

          • Rakesh

            March 21, 2012

            @Vivek,

            In the end customer will benefit. But i don’t think it would make sense for people to take money out from one bank and deposit in other bank. Managing more accounts would be cumbersome.

          • Vivek K

            March 21, 2012

            @Rakesh, I never considered co-op banks, somehow couldn’t trust them.

          • Rakesh

            March 21, 2012

            @Vivek,

            Yes co-op banks are very small and there were news of some closing down and cheating people in the past. But with RBI making rules sticker it won’t be easier to cheat people now.

          • Vivek K

            March 21, 2012

            @Rakesh

            Still it won’t be easy to trust them just to earn extra 1% interest.

          • Rakesh

            March 21, 2012

            @Vivek,

            I understand your concern, same with me when it comes to buy life/health insurance from private players.
            But i think unless you bank with them you won’t know how they work. I have an account with a co-op bank for over 8 years and i am very happy with their services.

          • Vivek K

            March 21, 2012

            @Rakesh,

            Hmmmm I might try if I find something closer to my place so that I can visit them regularly and keep an eye on them 😉

        • Praneet Bajpaie

          April 7, 2012

          Post a Reply

          Fill up Form 15G (15H for Senior Citizens) and submit it to the bank bt the 15th of April every year. Then, bye bye TDS

  20. santhosh

    March 19, 2012

    Post a Reply

    Thanks @radhey,rakesh,vivek.
    i bought some shares in my wifes account and sold it. LTCG are exempt from tax. If i do FD with the proceeds (share capital + Cap gains) in my wifes name, what are the tax implications?
    My wife has no other income.

    • Rakesh

      March 20, 2012

      Post a Reply

      @Santosh,

      If interest earned from FD is more that Rs.10,000 for the year, the bank deducts TDS but as you mentioned your wife does not have any other source of income you can submit Form 15G to the bank and the bank will not deduct TDS.
      But you did not answer the first question as to how the shares came into your wife’s account. If you transferred from your account to her’s then its better to prepare a gift deed.

    • Vivek K

      March 21, 2012

      Post a Reply

      @santhosh, I don’t know the amount you are dealing with but if your wife’s total annual income is over 2.5 lakhs, then she becomes eligible to pay income tax. So, keep an eye on it and the tax slabs.
      Otherwise best way is to avoid TDS like Rakesh explained above. Don’t get into the vicious circle of getting refund from IT department.

    • Vivek K

      March 21, 2012

      Post a Reply

      @santhosh, Do read this article suggested by Rakesh. We have some good discussion going on there.
      You may want to share your personal experiences as well.

      • Rakesh

        March 21, 2012

        Post a Reply

        @Santosh,

        Agree with Vivek, we have been having some great discussion not only in this topic but various other topics. You can contribute there and share your views.

  21. Rajesh

    March 20, 2012

    Post a Reply

    I have two houses in Noida both are let out (Both are on home loan with interest component as 3 lakhs + 6 Lakhs), I live in Bangalore on rent. what will be the income tax implications? Can I add both the properties interest for tax relief (= 9 Lakh) and claim HRA also as I live in rented house?

  22. mukesh

    March 21, 2012

    Post a Reply

    I bought a plot for rs.3,00,000/- in 2004 april, which i sold for 12,00,000/- in 2011 april, and i invested 3,25,000/- in shares in 2006-2008, of which i sold all shares in 2012 january for small amount of 50,000/- . Hear am i able to claim long term capital loss through share trading from long term capital gain through the sale of plot

    • Vivek K

      March 21, 2012

      Post a Reply

      @mukesh, You should be able to but I am not sure about the procedure. I think it is safe to take help from a tax consultant.

    • Rakesh

      March 21, 2012

      Post a Reply

      @Mukesh,

      Yes you can claim long term loss in shares against long term profit earned by sale of plot. Again a tax expert will be in a better position to guide you.

  23. Syed

    April 9, 2012

    Post a Reply

    Hi All,

    I took home loan to construct house, but land is on my father’s name.
    Is there any way i can show home loan to avail tax benefits.

    Please help me on this.

    Thanks,
    Syed.

    • Rakesh

      April 10, 2012

      Post a Reply

      @Syed,

      Yes you can, make your father as a co-applicant to the home loan.

    • Vivek K

      April 10, 2012

      Post a Reply

      To avail tax benefit on home loan I don’t think land owner matters. All you need to show is the principal and interest certificate from the bank, which of course will be in the name of the loan applicant and not the land owner.
      It makes sense to have a co-applicant in home loan only if co-applicant is paying income tax so that both the parties can enjoy the tax benefits.

      Let’s see what wealthwisher team has to say?

      • Rakesh

        April 10, 2012

        Post a Reply

        @Vivek,

        To avail tax benefit you need to be a co-owner of the property.
        Below query was posted in rediff.

        If the home is on my parents name, can I take a home loan and get the tax benefits?

        Only owners or co-owners are eligible for tax benefits on the repayment of a loan taken to acquire or construct a house property.

        Therefore, if the property being acquired is in the name of your parents alone, you will not be eligible for any tax benefits on the loan taken to acquire the property.

        http://www.rediff.com/getahead/2006/jan/06home.htm

        • Vivek K

          April 10, 2012

          Post a Reply

          If this is the case then I am surprised that no one questions about the owner of the land. When I took home loan no one asked, when I submit certificate every year for tax exemption no one asks.

          • Rakesh

            April 10, 2012

            @Vivek,

            In Syed’s case he is constructing a house in a land which is owned by his father. In your case you would have taken a home loan for an apartment and the bank would have verifiedthe registration document.

          • Vivek K

            April 10, 2012

            @Rakesh,
            I took home loan when the property was under construction and there was no registration done at the time home loan sanction.

          • TheWealthWisher

            April 10, 2012

            Vivek, there is a difference when constructing an apartment on a land and when buying an apartment from a builder. In the latter, the apartment belongs to you so ownership of apartment is checked as the land due diligence is already verified by the bank beforehand. In the former case when constructing on a piece of land, each owner’s interest in the land is checked because the entire land belongs to the owner.
            Does this make sense ?

          • Vivek K

            April 11, 2012

            @TheWealthWisher

            Yes, the concept makes sense.
            But still there is no check when taking tax exemption, is there? If I submit the certificate I can claim the exemption.

  24. Praneet Bajpaie

    April 10, 2012

    Post a Reply

    Hi,
    Could anyone do an article on Section 111A of the Income Tax Act which I feel is one of the most idiotic and confusing sections there could be.

    Thanks

  25. Kaly

    May 2, 2012

    Post a Reply

    If an NRI is sending some money to invest in his wife’s name in form of FD for monthly expenses, is it taxable if, the total interest is less than 1.80 lacs/annum

  26. rahul punia

    June 5, 2012

    Post a Reply

    hi…..i left my previous company in aug. 2011 .and my employer had not deducted any tax from my income…becuase my 5 month income was 1.5 lakh. and i had not submitted any medical or claim bill to my previous employer. noow i paid all taxes for my current employer with 0 rs. return. Should i need to file ITR.
    how i can pay my previous emplyoer income tax.What will happend if i will not pay previous employer income tax???My previous employer salary account dooes not have my PAN no. . I think than Income tax deparetment does not have my salary detail…please guide me what should i do….pls..

    • TheWealthWisher

      June 5, 2012

      Post a Reply

      Rahul – get hold of a tax consultant quickly.
      When you combine all the income from the 2 companies, the results can be very different than what you think. The tax consultant will do the calculations for you. You need to file 1 return for 1 financial year, irrespective of how many companies you worked for.
      You pay tax to the government through your employer. In your case, if you discover that tax is to be paid, then pay it directly online to the government.

    • Rakesh

      June 5, 2012

      Post a Reply

      In this case you will have two Form 16. Once you club both you would have to pay tax. I have been in this scenario in the past. As Radhey suggested get in touch with a tax consultant and he will guide you how to pay tax.

  27. kundan

    June 11, 2012

    Post a Reply

    Hi,
    I wanted to know that who all can get a Tax rebate on mobile bills? if yes how do i claim for it? please let me know.. thanks in advance

  28. Nirmal

    June 13, 2012

    Post a Reply

    Dear Sir,

    If a house wife has some FDs in her bank and getting interest of more that Rs. 10,000/-. Whether she should file the I.Tax Return.

    Thanks and regards

    • Rakesh

      June 13, 2012

      Post a Reply

      @Nirmal,

      If her total income exceeds the taxable limit (1,80,000) then only she needs to file IT return. As incase of FD where interest is more than 10000 she can always submit Form 15G to the bank and they will not deduct any tax. I have done it for my mother.

    • Vivek K

      June 14, 2012

      Post a Reply

      It depends on the total income of the person and which tax slab he/she falls under. If the total income is only 10k+ then no tax return has to filed.

  29. Parkash Chand

    June 15, 2012

    Post a Reply

    Received Leave encashment on retirement during assesment year 2012-2013 from Central Govt. Undertaking Organisation for 195 days Rs.2,94,444/- i.e On last pay drawn basis however it comes on 10 months average basis Rs.2,83,294/-. Please advise if any amount is taxable keeping in view the exumption of Rs.3,00,0000/-.

  30. vasu

    June 25, 2012

    Post a Reply

    my mother has 2 lacs fixed deposit in her bank account whose interest exceeds more than 10000 in a financial year. And her monthly salary is 4000 rupees only. Is it ok for her to to give 15H in banks so that no TDS can be done at source bank where she has fixed deposits.

      • Sudhakar

        July 20, 2012

        Post a Reply

        HI,

        for the Fin Year 2011-12, I have worked in 2 differernt companies.
        first Company-From March 2011 Till Sep 2011
        Second Company-From October 2011 Till Date
        So i have 2 form 16 for the Fin Year, As a result no tax deducted by either of 2 companies(first Company Total Sal 1.6 Lac, Second company Total Sal 2 Lac)
        and Gross Salary is 3.6 Lac, As per IT act my salary fall under 5Lac category.
        So do i need to file my IT return this year, and pay the actual tax incurred(around 15000)?
        Please assist

        Thanks in Advance

        • Rakesh

          July 20, 2012

          Post a Reply

          @Sudhakar,

          Yes you would have to pay tax. You can either file your returns online or get hold of a tax consultant.

  31. vijay srirang

    July 6, 2012

    Post a Reply

    dear sir
    please advise me on my query I have taken a plot of 300 sq yards near Hyderabad for 36000/- in 2002 and in 2012 the same plot has been acquired by the govt and paid 450000/- after deducting a TDS of 10% i.e 45000/-. Now can i claim the same as my refund in my returns now will it attract capital gain tax if so how much. I am an unemployed and has never been an income tax assessee. my mail id is rirangvijay@gmail.com. please reply.
    with regards
    vijay srirang

  32. tanu

    July 24, 2012

    Post a Reply

    I have paid Rs 136000 as pre-construction interest on emi and pre-emi in the fy 2010-11. The construction of house completed in fy 2011-12. I have paid interest of Rs 177000 in fy 2011-12 on home loan emi. Now the rebate i’ll get under sec 24 is Rs 150000 in the A.Y 2012-13 against the interest paid in fy 2011-12 . When and how will i be able to claim rebate against emi and pre-emi paid in fy 2010-11.

  33. Vijay Kumar

    July 25, 2012

    Post a Reply

    Please give your valuable opinion, on the following:

    1) I am working in a Government department. We have formed a Employees’ co-operative credit society, which is registered and have 30 members . The society gets monthly contribution from the Members, and the same will be utilised for disbursement of loans to the needy Members with interest of 12%. The society’s income is only in form of interest from the loans to its members. After meeting the expenses, annual surplus if any, disbursed to the Members back in the form of dividend. Sir, I want to know, whether, the society is liable to file IT return every year. Our annual surplus is around Rs.50,000/-. Please guide income tax implication and our obligation to file IT returns annually. Thanks

    2) I am a resident of co-op. housing society. We have a Maintenance Association, registered as NTC which looks after maintenance work of the society and receives maintenance charge from the society members. The Association files IT returns annually. Now builder has handed over the society to its Members and for that purpose we formed a separate adhoc committee to look after the work of the Society. This committee of the society will look after only legal aspects of the society like purchase and sale of units by the members and the prospective members. Kindly advise, whether the Society is liable to file IT returns or not. Also please advise, whether we should dissolve the Maintenance Committee and merge with the society and work under one umbrella ?

    Your valuable advice is highly appreciated. Thanks

    • Rakesh

      July 25, 2012

      Post a Reply

      @Vijay,

      I guess a tax consultant would be in a better position to advise you.

  34. veer

    July 25, 2012

    Post a Reply

    yaar main mah father is a motor mechanic (labour who repairs truck)(self – employed)and his annual income is 200000 and bank for my education loan is demanding p&l statement ,balance sheet ,computation of income etc what shall i do

  35. Rakesh

    July 26, 2012

    Post a Reply

    @Veer,

    You Father might have filed IT returns over the years, you can submit that to the bank as it also includes income and expenses.

    • veer

      July 26, 2012

      Post a Reply

      my father had filled itr only for last two years
      just tell me from where i can get those documents

  36. Rakesh

    July 26, 2012

    Post a Reply

    @Veer,

    Can you be more specific? If the ITR was filed by you then you should have the documents or if it was done by your tax consultant then should have a copy.
    Anyways a tax consultant would be in a better position to assist you.

  37. suvan

    July 26, 2012

    Post a Reply

    Hello Sir,

    I have an apartment with a loan. Me and my wife bought it. she quit her job and she had no income in this financial year.
    Is there any way i can claim more tax benefit than 1.5 lac limit in loan interest?
    Also , I was out of india for the whole of 1 year and the house was not let out.
    In this case , whats the best way to claim the loss of letable rent that i can claim
    and how to compute that approx rent which i could have got if i had rented my flat.

    Thanks
    Swan

    • TheWealthWisher

      July 30, 2012

      Post a Reply

      No you cannot claim more than 1.5 lakhs in interest deductions. To best use the let-able rent, you need to get in touch with a local tax consultant who can help you.

  38. ratilal vaghasiya

    August 17, 2012

    Post a Reply

    I am working in a united company. I want know that do i have pay IT return by myself or company has to pay those returns?

  39. Rakesh

    August 18, 2012

    Post a Reply

    @Ratilal,

    If your income exceeds the taxable limit then you need to file IT returns by yourself. The company deducts tax each month and deposits the same with the Income Tax authorities. We only need to file the returns containing the same information.

  40. Rakesh Bhat

    August 19, 2012

    Post a Reply

    Dear Sir,
    I have to go for tax saving investments.
    Please suggest !
    I do not want to go for LIC as its Horizon is long.
    I want my investment locked not more that 5 years .

    Regards,
    R.bhat

    • Rakesh

      August 19, 2012

      Post a Reply

      @Rakesh,

      You could opt for Tax Savings Fixed Deposit. You would get 9 to 9.5% returns for 5 years.
      Do check with your local bank for the latest interest rates.
      If you are risk aversed you could opt for Mutual Fund Tax savings scheme.

  41. Shirish

    August 22, 2012

    Post a Reply

    I am planning to sell a house for Rs.22 lakh, which had been purchased by me 5 years ago for Rs.16 lakh. And I took loan of Rs.13 lakh. In this period of 5 years of owning that property I paid Rs. 5 lakh as interest on loan.
    So while calculating the Capital gain does this interest amount also gets deducted from the profit ?

    And What Even though the agreement got registered 5 years back , I got possesion 2 years back . So this will be considered as Short term or long term capital gain ?

  42. rohit sachdeva

    September 24, 2012

    Post a Reply

    i wish to take a housing loan for construction of house…..but the plot is registered on my mothers name…can i claim for tax rebate……kindly assist
    regards

  43. Sourabh

    September 25, 2012

    Post a Reply

    Hi,

    I have two houses, both with the loan of 30 lacs, and want to know the maximum tax benefit I can get. Please answer the following:
    1. If I rent both of them out (and stay in a separate rented house myself), what will be the tax benefit on the interest part of the loan I will get ?
    2. One of them I have to declare as self-occupied and other as rented. Can the self occupied declared house be rented out too ? How will the tax calculation happen when I rent out the house which I declared as self occupied.

    • TheWealthWisher

      September 28, 2012

      Post a Reply

      I think both of these have been answered in the article above and the questions and answers readers have been asking, so please read that.

      • Sourabh

        September 28, 2012

        Post a Reply

        It will be helpful if you take some time and answer them again.

        Thanks,
        Sourabh

  44. Sudip D

    September 27, 2012

    Post a Reply

    Hi Radhey.. How are you doing?

    I have got an issue related to ‘Question 5’ above. So can you help me with the contact details (email ID/physical address) of the IT department where I can write to them about my issue?

    Reply awaited.

    Thanks in advance!

  45. kabir ray

    October 1, 2012

    Post a Reply

    if my salary is 24,000 gross per month,how much should i make a FD for Tax redemption?

  46. Vikram Shah

    October 3, 2012

    Post a Reply

    I had e-filling of my ITR for A.Y.2011-12 & 2012-13 by mistake depreciation of A.Y.2011-12 depreciation work not mentioned in ITR (but Net Profit shown after deducting Depreciation in ITR)
    I rcvd 143(1) by demanding Tax with interest of this Depreciation Amount so what i have to do???? Please reply me

    Vikram Shah

    • TheWealthWisher

      October 4, 2012

      Post a Reply

      Vikram, get hold of a tax consultant and use his advice and services to tackle this problem. That is the best way out.
      Depreciation of which thing are you referring to here ?

  47. Sig

    October 10, 2012

    Post a Reply

    I have following query,

    My wife is a homemaker.
    Suppose I transfer/Give my wife money for monthly household expenses (say 50000 rs/pm) to her and she saves some money out of it and invests in a Fixed Deposit and earns interest on it. Will she need to pay income tax for the interest earned?
    If she DOES NOT need to pay any income tax, what is the proof OR in what way do I need to make the transfer to her Account to avoid any income tax trouble later?

    Thanking You in advance

  48. mohit

    October 31, 2012

    Post a Reply

    if i make fd’s in name of my wife, can she file her IT return for interest earned. Or it will add to my income.

    • Praneet

      July 26, 2013

      Post a Reply

      Show the amount invested in your wife’s name as a loan from you to your wife, In that case, your wife will have to file the return in her name, otherwise the income will be clubbed with your income.

      • Raj

        December 4, 2014

        Post a Reply

        Hello,

        In ITR 4 (AY 2014-15), if we want to show in Person A ITR that he has given interest free unsecured loan to wife, then should it come under:

        Loans and advances:

        1 Advances recoverable in cash or in kind or for value to be received?

        2. Deposits, loans, and advances to corporates and others?

        Also, where it should be shown in his wife ITR 4 (receiver) ?

        And, what is the maximum limit & period for which interest free unsecured loan can be given?

        Thanks,
        Raj

  49. sunil pasricha

    November 6, 2012

    Post a Reply

    1. Employer issued tax sheet and as per sheet deductions u/s 10 was allowed but employer did not provide from no. 16. Can the Assesses claim deduction u/s 10 provided as per tax sheet. Please advise and let us know and judicial pronouncement if available. The Assesses is in default on lapse of employer. Can the employer take the benefit of innocence as the fault lies with employer and not with employer?

    2. Can exemption be claimed as per tax sheet where employer has not provided Form No. 16 as this Company has gone sick please quote authority of supreme Court & High Court.

    3. Proof of Cash Credit Could Not be Furnished before A.O. The Appellate Authority CIT (A) did not entertain the Proof of Deposit. Can fresh evident be given in appellate tribunal as the loan was taken through A/c Payee’s cheque from existing assesses we need judicial Pronouncement.

    4. “A” Salary Person working with King Fisher as Pilot Inspite of number of Requests did not received form no. 16. But received the tax sheet where deduction allowed u/s 10 were made but the Assessing officer while framing assessment demanded form no. 16 which the King Fisher Company- did not provide to the assesses. The assessing officer made disallowed on this score. Please Suggest the remedy with support of Judgment Favoring the Judgment assesses pronounced by High Court and Supreme Court.

    “B” The Assessment during the Assessment Year in Question Received Loan of Rs. 260000/- through account payee cheques from existing Commission agent, Income tax assesses. During the course of assessment the assesses could not disclosed the name of person from whom that was received. The A.O added the same to the income of assesses. The Assesses went in appel with CIT (A). Who also up holded the addition with the peea that this Information was not given to A.O. Please Suggest the Remedy in Tribunal with court Authorities

    • TheWealthWisher

      November 9, 2012

      Post a Reply

      Have you consulted a tax consultant for this or a lawyer ? You probably need both.

  50. Govindrao

    December 18, 2012

    Post a Reply

    HUF landed property sold for 50 lakhs. after paying long term cap gain at @ 10%, can balance be distributed amongst coparceners under sec 10(2) of the Act >

  51. Abasaheb

    December 20, 2012

    Post a Reply

    HUF landed property sold for 50 lakhs. After paying long term cap gain tax @ 10%, can balance be distributed amongst coparceners under sec 10(2) of the Act >

    • Praneet

      July 26, 2013

      Post a Reply

      No. It can only be distributed when there is partial or full partition of the HUF. If there is no partition, the amount will have to be kept in the HUF account until there is partition of the HUF.

      Here is an extract of the provisions

      Types of partitions:
      1. Total Partition – It is the type of partition in which the entire family property is being divided amongst the coparceners. After the total; partition takes place, the HUF ceases to exist. All property is being divided among the coparceners of the Hindu Undivided Family.
      2. Partial Partition – It is the type of partition which is partial as regards either the person constituting the joint family or as regards the properties belonging to the joint family or both. In case of partial partition, some coparceners may separate from the joint family but other members continue to be a part of the joint family. In this case as regards the property, there may be a division or severance of interest in respect of some part of the estate of the joint family, while the rest of the estate may continue to remain as a part of the property of the joint family.
      Effect of partial partition after 31st Dec, 1978 – If any partial partitions have been affected after 31st Dec, 1978 there will be no taxation aspects in it. If any partition occurs after 31st Dec, 1978 then no claim of such partition shall be recorded by the Assessing Officer. Such families will be assessed as if no partition has been taken place. Every member of HUF, immediately before such partition, and the HUF shall be jointly and severally be liable for any sum payable under the Act. The several liability of a member would be proportionate to the share of joint family property allotted to him on such partial partition.
      Assessment after Total Partition – When a claim of total partition of HUF has been made by any member of the HUF on behalf of the HUF, the assessing officer shall enquire upon it. For this he shall serve a notice to all the members of HUFs and shall enquire whether total partition has taken place and if so on which date it is affected. If partition has been affected in the previous year, the total income of the HUF of the previous year up to the date of partition shall be the total income of the HUF. Every member of the HUF shall be jointly and severally liable for the tax on such assessed income of the HUF. The several liability of a member would be proportionate to the share of joint family property allotted to him on such partition.

  52. ravi

    March 14, 2013

    Post a Reply

    if i transfer my money to my wife and make fd on my wife name and the fds interest is below tax limit for ladies, will i or my wife has to file income tax returns….

  53. ravi

    March 14, 2013

    Post a Reply

    if i transfer my money to my wife and make fd on my wife name and the fds interest is below tax limit for ladies, will i or my wife has to file income tax returns….please clarify

  54. Sri

    May 10, 2013

    Post a Reply

    Hi
    I took a construction loan from SBI in month of April 2013. My pre-EMI will be started from June 2013. The project is likely to complete by January 2014.
    But until now I am staying in a rented house. I will be paying full EMI from Feb 2014 onwards which comes within the current financial year. I shall also get house completion certificate from bank by then. As I am currently staying in rented house, and also going to get the possession of the house within the same current financial year, can I get the tax benefit for both house loan and rent?
    Please advice.
    Thanks

  55. A.A.Newalkar

    June 2, 2013

    Post a Reply

    I am in service with Pvt. company. I am eligible for LTA. I have not availed the same since the year 2008 till date. Now I want to avail the tax free LTA of 2008 & 2009. can I get the same tax free under the current Income tax law.

    If not then to get the tax free LTA, for which year I should avail?

  56. SURINDER PAL SINGH

    June 11, 2013

    Post a Reply

    I HAVE FILLED I TAX RETURN FOR A Y 2012-13 MANUALLY IN I TAX OFFICE KHANNA DISTT LUDHIANA (PUNJAB). SO FAR I HAVE NOT RECD. REFUND. CAN I FILE THE SAME RETURN OF A Y 2012-13 ONLINE TO GET REFUND EARLIER?

  57. Sanjay Pote

    June 17, 2013

    Post a Reply

    As a RNOR ( status ) Interest earned from FCNR deposits is exempt from Tax in India .
    How about interest earned from NRE deposits when status is RNOR ??
    NRE deposits run till maturity . As also NRE depsosits and interest earned is fully repatriable .

  58. Aloke Roy

    June 18, 2013

    Post a Reply

    I have got an intimation u/s 245 regarding outstanding demand of tax for the AY2003-04.I have paid the tax amount.I have got the photocopy of the challan but the original copy of the challan is misplaced.Shall I have to pay tax again? Kindly advise.

    • MANISH TIWARI

      July 22, 2013

      Post a Reply

      NO U CAN CHEQUE UR CHALLAN STATUS IN VIEW 26AS STATEMENT IF IT SHOWS THEN PRINT AND GIVEN TO UR ASSESSING OFFICER IT WILL BE TREATED THAT U HAVE DEPOSITED THE CHALLAN

  59. Varun

    July 5, 2013

    Post a Reply

    I have’t declared my rental income for 5 years. Is their any provision to pay tax on rental income for past 5 years….?

  60. MANISH TIWARI

    July 14, 2013

    Post a Reply

    I AM A CLOTH COMMISSION AGENT MY TOTAL COMMISSION INCOME IS RS. 800000.00 CAN I FILE ITR 4S

  61. RAHUL YADAV

    July 15, 2013

    Post a Reply

    I have rented one floor against which housing loan is taken but living in parents house and paying monthly rental to them . Both properties are in Delhi . Under what circumstances can I claim benefit of both HRA as well as housing principle & intererst . Pls guide ?

  62. Dr.Anirudth

    July 15, 2013

    Post a Reply

    Sir,
    I’m going to work for two organisations as a full time salaried employee. Will there be any issue in getting two Form 16s ? Will there be any issue in working for two organisation simulatenously ? Please let me know

    • Rakesh

      July 18, 2013

      Post a Reply

      Hello Dr,

      There is no issue of you working in two organizations simultaneously.
      As long as you can get Form 16 from your employer you should be good.

  63. Adil khurshid

    July 16, 2013

    Post a Reply

    My total Annual salaried income is Rs. 1,87,000/ and i have been paying insurance premium 28,500/- also paying education loan installment of 3,700/PM have I to pay income tax, if not is it necessary to return file for me, i am having PAN also…

    • Rakesh

      July 18, 2013

      Post a Reply

      @Adil,

      Do you have any other source of income? If not I think you don’t need to pay any tax.
      Download an online tax calculator and you can check for yourself.

    • Praneet

      July 26, 2013

      Post a Reply

      As a matter of prudence, you should file the return but if Rs. 1, 87, 000 is your Gross Total Income then you are not legally liable to file you IT Return.

  64. vish

    July 18, 2013

    Post a Reply

    Today is 18 july 2013.
    I have forgot to file income tax returns for my financial year 2010-2011.
    Can I file it now?

    Regards,
    Vish

  65. firdoash

    July 22, 2013

    Post a Reply

    While paying tax on Bank FD i have mentioned the Assesment year as 2012-13 for the financial year 2012-13.
    Background: i have form 16 from my employeer and there i am paying 19500 as tax for the year.
    What i can do in this regard? Do i have to pay the tax again and file the ITR?

    • TheWealthWisher

      July 23, 2013

      Post a Reply

      So your employer has paid tax on your salary/earnings to the govt but not on the FDs which you might have. So if your questions was whether you have to pay tax on FDs, yes you have to and then file IT returns. Sorry if your query was something else.

  66. Randeep

    July 23, 2013

    Post a Reply

    I have not paid my insurance for 2012-2013 . I have paid it in July. It is not present in my Form 16. Can i claim the same for my tax returns of 2012-2013 ?

  67. kulwant Singh

    November 18, 2013

    Post a Reply

    Dear Sir i want to ask right now i am on rent in Mohali and am paying my rent month on month and now my Tenant says you have to pay house tax too but i can not understand because this rent is income of my tenant why should i pay house tax he said me that you have to pay 7.5% of house tax of your total rent please advice me what i have to do?

  68. parthiban

    January 8, 2014

    Post a Reply

    Iam a railway employee i have to get a refund amt. of Rs.5000/- from Income Tax. I received a message on 09.12.13 from the income tax dept. C P C , that ITR V for 2013-14 has been received and accepted. I want to know when i will receive that cheque or whom to contact for it.

    • Rakesh

      January 14, 2014

      Post a Reply

      @Parthiban,

      Usually the refund takes 3-6 months. In most cases it would be credited to your account which you have mentioned in the ITR.

  69. Aruna

    January 29, 2014

    Post a Reply

    Hi

    My company provides Perquisite on Car. But the car is registered on my spouse name. So how can I claim exemption on this.

    Thanks,
    Aruna Varanasi

  70. shantanu

    February 9, 2014

    Post a Reply

    I was a salaried person working in an Indian MNC where I was frequently required to travel on company related work. The company re-imbursed me for travel expenses on actuals on submission of receipt. Recently I got an IT query where-in I was asked the details of these payments by my company. I submitted a letter from my company stating that these are travel related re-imbursements but the IT official refused to accept it in absence of actual receipts which I dont have anymore as I submitted them for getting re-imbursements. Do I have a chance of success if I appeal against the order?

    • Praneet

      July 30, 2014

      Post a Reply

      Shantanu, please get in touch with a qualified Chartered Accountant for this problem. He/She might be able to help you better than anyone.

  71. Vijay

    February 22, 2014

    Post a Reply

    Dear Sir,

    I have taken a concessional housing loan and as per income tax rule i have been charged with the differential rate as per SBI Lending Rate and added to my gross salary .
    Now after adding that amount whether i can claim the Benefit of Housing Loan exemption .

    Regards
    Vijay

  72. kalyanasundaram

    March 20, 2014

    Post a Reply

    my wife received from her own brother some company shares as a gift.if she sells the same shares will it attract capital gains tax as per indian it laws?

  73. vinay

    April 17, 2014

    Post a Reply

    Query1: I transfer substantial party of my Salary Income to my wife Bank account. Total interest earned by my wife is around 5000 in year 2014.
    Please advise if the interest income earned on my wife’s bank account is taxable?

    Query2: – Some of the money transferred by me to my wife’s account has been utilized by opening De-Mat account in my wife’s name and she has earned some profit in it
    Period of holding is less than a year. My wife has not yet taken out money from her De-Mat account, instead of that, she has re-invested money in some other stock.
    Please advise if the re-invested money is taxable ?

    Query3:- Please advise if I can set of capital gains made by my wife through capital losses incurred by me by way of buying and selling stocks?

  74. Ram

    April 27, 2014

    Post a Reply

    I’m salaraied person, but i was not in job for last 1 year, means i do not have income from Apr’13 to Mar’14. I was filing inc tax return till last year from 2008 onwards every year. I filed ITR-2 last year as I have house property and I am paying loan for that. Should I file return this year also (if so how) or should I submit any proof / doc / letter for ‘no income’. Pl can you guide?

  75. ALOK

    May 23, 2014

    Post a Reply

    I purchased first home in Mumbai in 2008, the home loan for this property was repaid in 2010. I occupy this home.
    in 2011 I purchased 2nd flat in Mumbai with a home loan, I have rented out this flat. I get Rs. 20K as rent and I pay EMI of Rs. 86K for this flat. I have currently only 1 home loan for the 2nd flat.
    I have 2 questions:
    1. What is the tax benefit I will get in this scenario?
    2. Someone has suggested me not to pay prepayment and take benefit of interest that I am paying for this home loan.
    Request your advice.
    Thanks

    ALok

  76. GKS

    June 5, 2014

    Post a Reply

    For the purpose of calculating taxability of Leave encashment on retirement, is the employee of public sector bank considered as Govt. Employee ? Please clarify with case law if any.

  77. DS SANDHU

    July 3, 2014

    Post a Reply

    DEAR SIR,PL .LET ME KNOW I.T. IMPLICATIONS ON BUYING A VEHICLE WORTH RS.9 LAKH IN CASH IN THE NAME OM MY SPOUSE.WE BOTH FILE ITR . REGULARLY. RECENTLY I HAVE BEEN A RECIPIENT OF RS. 5 LAC FROM LIC AS MATURITY CLAIM.THANKS

  78. chugh

    July 3, 2014

    Post a Reply

    My daughter got Rs. five lacs as alimony in divorce matter. She is govt employee. This amount is exempt from income tax. Pl let me know the section of IT under which is so. Also let me know if we can ignore to mention this money while filing the ITR. Or we can even inform the IT department later.

  79. Rahul Pai

    July 4, 2014

    Post a Reply

    Dear Sir I have a query, I would be pleased to have your reply.
    Presently I am a karta of a huf which was opened by my father, he passed ten years ago, sister has got married, now my family has grown with wife and child. How can I incorporate them into the huf. what would the status of my present huf.

  80. Pankaj Sood

    July 11, 2014

    Post a Reply

    Can the tds deducted by govt. Office on payment of land acquisition/enhancement in name of deceased and payment released to his legal heirs by a court be claimed by his legal heirs by asking for tds certificate in the name of his legal heirs who received the payment from the court.

  81. Rahul

    July 22, 2014

    Post a Reply

    Hi,

    I have purchased a flat last year, in which the broker through which I have purchased flat returned me rs 35000/- as discount from his commission and deducted 10% as TDS. Now while filling quick return on income tax website, that TDS is showing up as my income from other sources.
    Please let me know, that discount I received is taxable or not, and do I need to show that as my income from other sources (in that case I have to pay additional tax, as I am in 20% slab), or I should claim for return of that TDS.
    Please assist me.

    Thanks,
    Rahul

  82. Rajeeb

    July 22, 2014

    Post a Reply

    I worked and got salary in Singapore and income tax was deducted/settled by Singapore govt at the time of return. Is it mandatory to declare this income in India during filing income tax return?? If I don’t mention the foreign income in Income tax return as tax is already paid in Singapore…will there be some problem in future??

    • Praneet

      July 30, 2014

      Post a Reply

      @Rajeeb Yes you are required to disclose the information in the Tax Returns.

  83. ankit

    July 24, 2014

    Post a Reply

    In AY 2013_-14I did not opted for sec 44ad for my business income.can I adopt sec 44ad for AY 2014-15,I

    • Praneet

      July 30, 2014

      Post a Reply

      @ankit Yes you can adopt the provisions of Sec 44AD for the AY 2014-2015, provided you are eligible.

  84. Priya

    July 26, 2014

    Post a Reply

    Hi.

    I have lost my form 16 A for the assessment year 2014. I have been trying to contact the company where I used to work, for a duplicate copy but they haven’t responded to my calls.

    I was wondering if the form 26AS downloaded online that shows all my tax statements – can be used to file my tax return? I don’t however have details like, TDS certificate number.

    Can I still go ahead and file my tax return?

    Let me know soon! Thank you for your time!

    Priya

    • Praneet

      July 30, 2014

      Post a Reply

      @Priya Well Priya, you need the TDS Certificate Number when you are filing your return so you need to contact the company ASAP to get a duplicate TDS certificate. If you are filing your return online and you don’t type in your Certificate No. the utility will not accept your return.

  85. Aloke Roy

    August 2, 2014

    Post a Reply

    If my taxable income including short term capital gain from share is less than the taxable limit,then shall I have to pay tax for the short term capital gain(15%)?

  86. Vj

    October 12, 2014

    Post a Reply

    Dear Sir/Madam,

    I have a query about income tax.

    I had booked a flat in Bangalore in year 2011. The total value that I

    am paying for the flat is Rs. 32 lakhs. Now in Year 2014, the flat is

    ready for registration.

    The builder is asking me to pay the registration charges on Rs. 32

    lakhs. However, in the registration document, they are stating only

    Rs. 3 lakhs.

    When I contacted the builder, they are saying following:

    “Since construction of the apartment is through a works contract,

    where we have acted as contractors, … there is no requirement to add

    the construction value to the sale deed. However as per stamp duty

    regulations, we will be declaring the guideline value the apartment

    and stamp duty is payable on such value”

    Effectively, they are saying that Rs. 29 lakh is the cost of

    construction and though I have to pay stamp duty on it, but they won’t

    mention it as amount paid in sale deed.

    The property is located in Bangalore (Karnataka)

    Question:

    a) Is the stand taken by the builder correct?
    b) If so, and I go by their statement, then say after 10 years, I sell

    the flat for Rs. 50 lakhs. What will be treated as my capital gain –

    Rs. (50 lakh – 3 lakh) = 47 lakh OR Rs. (50 lakh – 32 lakh) = 18 lakh

    Your help will be greatly appreciated.

    Thank you and best regards,

    Vj

  87. SR Singh

    October 16, 2014

    Post a Reply

    I had taken a housing loan of 15l in 2007 and was paying interest as the loan was disbursed in instalments. The final EMI started in 2009. Then, in 2013 I had the loan enhanced to 21L and the EMI commenced immediately since the full amount was disbursed at once. I have received possession of the house in Jul 14. Now, if I understand correctly, I am supposed to total up the entire interest amount from 2007 upto Jul 14, divide it by 5 and include that amount in my income tax rebate claim in this FY and the next 4. What happens to the principal amount from 2008 till 2014? Also, how am I supposed to handle the principal and interest amount starting Aug 2014? The interest part is more or less clear – I am to claim rebate from Aug 14 to Mar 15 under Section 24. Am I supposed to claim rebate on the principal from Aug 14 to Mar 15 under Section 80C? If someone can please guide me on this, I’ll be very grateful.

  88. N.Krishnan

    November 2, 2014

    Post a Reply

    I file ITR2 since I own a joint property co-owned with my brothers. I am not on good terms with three of my brothers and I have no way of getting their PAN numbers which is a must in filing return. I can either show my portion of the rental as 100% and not show the house as co-owned. Or I should not show this income at all. What should I do.

  89. Kishore

    November 13, 2014

    Post a Reply

    I currently need to pay a certain amount of money for one of the houses that ive booked. However, im currently going through a financial crunch and am unable to pay off the amount. If incase I borrow this amount from a relative, and upon selling another property pay it back to the relative, am I entitled to paying tax for the same?

  90. Swaraj Patel

    November 22, 2014

    Post a Reply

    My Income tax Acknowledgement No 396234400291014 for the A.Y 2014-15. Please intimate refund payment status.

  91. Sahana

    December 3, 2014

    Post a Reply

    Hi,

    I had filed the incometax return ITR 1 before the due date of July 31, 2014 for the financial year 2013-14. The figure filled in the same were incorrect and as per the ITR aknowledgement a self assessment tax of Rs 19000 (approx ) was due. I then received a notice from CPC under sec 139(9) for payment f self assessmnet tax due. When I recalculated the tax, the self assessment tax due was coming to Rs 16000 (as the figures filled in the return were incorrect), which I paid and uploaded the ITR 1 once again with the correct figures and self assessment tax paid. My query is whether I need to file a revised return?

  92. Jagannath panda

    December 12, 2014

    Post a Reply

    I wrongly filled 2012-13 in place of 2013-14 (in assessment year column considering both as same). Now due to that a tax paymement order of around rs 9000 has been demanded against my rs 1500 tax refund claim. Help me what to do

  93. Anant

    December 22, 2014

    Post a Reply

    i want to know the basic question on incometax :
    i come under more than 10 lakh slab income.

    My question is below :
    iam showing anyways 1.50,000 as savings , Hence incase i take a home loan will that help me to get more rebate , i can show more savings than 1,50,000 ? and whether that wil be taken in consideration or not ?

  94. Nagender

    January 9, 2015

    Post a Reply

    If wife and husband both are doing job and husband saving is Rs. 1,50,000 and also having some polices but wife saving is less then 1,50,000, whether serving husband saving policies amount can be taken into wife saving for the purposel of income tax or other wise

  95. Joshy Joy

    January 17, 2015

    Post a Reply

    Hi,
    This year I have renewed my LIC policy which was pending for last 2 years. As part of 80c DECLARATION, can I declare entire amount I paid for renewal or I can only declare premium amount for paid for this year?

  96. Shailesh Ladwa

    January 25, 2015

    Post a Reply

    If I am in India from April’2014 to Oct’2014 have Salary Income, and then going out of India for Job, then my Income from out of India I need to show, It is taxable in India, how I file Income Tax Return and in which Form ITR 1 or 2
    If I am sending money from out of India to House for expense purpose..then what….

  97. Sanju

    February 12, 2015

    Post a Reply

    US based company has an employee working in India. The employment contract is with company based in US whereas services are rendered in India. As per US laws it is mandatory to deduct contribution for social security/ medicare/ pension, from the Gross Salary. Whether these deductions are eligible to be deducted from the Gross Salary of employee while calculating tax liability, here in India.

  98. Nitin Johri

    February 19, 2015

    Post a Reply

    I have changed my job and due to which i have to relocate from one city to another. There is a certain amount that the company paid to me as relocation allowance; will this amount be treated as a taxable income to me (though i have expensed major portion of this amount in relocation and have the original bills as well).

  99. Debasis

    March 3, 2015

    Post a Reply

    Dear All
    I am aware that under section 24(b) one can calim IT deduction on interest on home loan provided that the house is acquired within 3 years after the end of the financial year in which the loabn was taken. Now my home loan has been given in two instalments the three year period is to be counted from the date of the first instalment or the second. Any insight will be appreciated

  100. Parin Chawda

    March 6, 2015

    Post a Reply

    I work with a MNC company and have my home in Bhilai which is registered in my mother’s name. I have created an independent 1st floor and have taken a loan from bank with my mother as joint owner. I have paid the margin money and also paying the emi for the home loan. Please suggest whether I can avail tax benefits on the loan.

    Rgds

    Parin

  101. amarjeet kaur

    March 6, 2015

    Post a Reply

    My taxable income is Rs 1001188/- how is I’m calculate surcharges?

  102. amarjeet kaur

    March 6, 2015

    Post a Reply

    My taxable income is Rs 1001188/- how is I’m calculate surcharges?

  103. Sugato Das

    March 10, 2015

    Post a Reply

    If I sell a house at a profit and invest the whole money to purchase a higher value property within three months of selling the previous property – then I know I do not have to pay capital gains tax- but do I have to show both transactions in that year’s tax return?

  104. K Raman

    March 11, 2015

    Post a Reply

    I am a retired Indian .I pay tax as per my slab(20% now )-income being from interests on FDs etc.My daughter & son in law work in US.My son in law wishes to ‘gift ‘me Rs 50.0Lakhs ,& I propose to put that in a few Tax free Bonds India in my name (first ), & their two names as nominees.
    Is there a tax implication .?Pl enlighten me .
    Thanks.

  105. JYOTIRMOY BASU

    March 31, 2015

    Post a Reply

    I am working for a public sector shipping company. My gross salary includes allowances like. (a) uniform making allowance(b) uniform washing allowance (d) academic and research allowance and (d) holiday travel expense. Are these allowance exempt from income tax. if so,
    (A) under which section do i claim refund for the tax paid on the above?
    (B) Is it possible to claim refund for previous financial years claim if not done earlier?
    Description rahul, kochi
    Total Views: 264 | Total Answers: 1 | Rating

    Answers to the question

    Uniform Allowance (for purchase or maintenance) given by the employer to the employee is exempt u/s 10(14)(i) read with Rule 2BB, subject to actual expenses incurred (i.e. minimum of actual allowance received and amount spent for the purpose). Under section 10(14(i) read with Rule 2BB academic and research allowance granted in Education and research institutions are exempt.

    Leave Travel Allowance (LTA) is tax free under Section 10(5) of the Income-Tax Act, 1961, read with Rule 2B,
    Revised Return of Income Tax can be filed to claim your refund any time before the expiry of 1 year from the end of the Relevant Assessment Year or before the completion of assessment (whichever is earlier)
    – Regards Do not agree? Post a new answer

    REFER TO QUERY & ANSWER OF ONE MY SEA FARER REGARDING
    ABOVE ( UWA/UMA/HTA/ACRA) FOR SEA FARER’S. MY QUESTION IS WHETHER ABOVE ALLOWANCE’S EACH GET 50 PERCENT
    TAX EXEMPTED INCURRED BY THE ASSESSEE IF ASSESSEE UNABLE TO PRODUCE/SUBMIT BILLS / SPENT DOCUMENTS IN THIS REGARD OF RESPECTIVE ALLOWANCES ( UWA, UMA,ACRE,HTA ) AT THE TIME FILING I.TAX.

    PLS ANSWER ME IN DETAILS

    JYOTIRMOY BASU, KOLKATA

  106. Parin Chawda

    April 27, 2015

    Post a Reply

    Hi,

    I have a home registered under my mother’s name for whom I am making the home loan EMI.

    I would like to claim I tax benefit under the same.

    Can it be done under Section [Sec. 27(iiia) under Sec. 53A of transfer of property act.

    What documents will be required to process so that I can claim the benefit.

    Rgds

    Parin

  107. RPBhardwaj

    May 4, 2015

    Post a Reply

    Sir, I sold the plot for Rs.7 lac on 15 apr 15 and recd the amount but sale deed is stopped presently in the area for the particular colony. How should I show the amount for long term capital gain without transfer of the property ?

    Regards,

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