Chat Transcript
15 Dec - 04:00 hrs
Umesh Rathi | CFPcm Principal Financial Planner, ARIHANT capital markets
Income Tax tips for investors
Chat Transcript
| moderator: Dear Moneycontrol user, welcome to the chat session with Umesh Rathi, CFPcm Principle Financial Planner, ARIHANT capital markets who will answer your queries on tax. So fire away your questions! |
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| sankgup: I have two self owned flat in delhi. i have taken home loan from the bank. i stay in one flat and other is lying vacant. can i claim deduction of principle as well as intrest on both the flats? |
| Umesh Rathi: The flat in which you stay can be considered house and the income from self occupied house is considered as nil. However you can claim deduction of housing loan interest max up to Rs 1.5 lakh. For second flat which is lying vacant can be considered as deemed let out. The annual notional value of the flat will be added in your income. However you can claim deduction of property tax paid, allowance for repairs and maintenance(30% of notional rent less property tax paid)and interest paid on loan. You can claim entire amount of interest even if it exceeds Rs 1.5 lakhs |
| gyankhater: Hello sir. Can i claim the expenses paid towards commission brokerage for the rental house? |
| Umesh Rathi: If you have letout the rental property then you are eligile for deduction of 30% for repairs and maintanance and there is no such additional deduction available for commission or brokerage paid. |
| pankajojain: I am an income tax payee, my wife is house wife, If I purchased a flat on the name of my wife, should I declare the same in my or my wifes |
| Umesh Rathi: The property should be shown in your wifes name only. |
| varunpan2011: DEAR SIR. WHAT IS THE CRITERIA OF IMPOSING TDS ON INTREST RECEIVED/ ACCRUED ON SECURED DEBENTUES BY NBFC. |
| Umesh Rathi: If Debenture is listed on recognised stock exchange then their is no provision of TDS |
| gyankhater: Can i claim property insurance premium paid towards my under construction house? Note: I |
| Umesh Rathi: No deduction available for property insurance of residential house property |
| ap-amitpaliwal: good evening sir, I am a tenant in a premises and I incurred certain expenses for renovation of the premises . In the Income Tax Return I claimed deduction for the said expenses incurred as revenue expenditure. Is such deduction permissible ? |
| Umesh Rathi: No such deduction is available if it is a residential house. If it is used for business or profession then you can claim as expenses |
| tiya1986: i had read in newspaper few days ago that after official notification one can invest in ppf up to 100000 and intrest will be 8.6% p.a. can i invest Rs 100000 in ppf this year and would be eligible for intrest @ 8.6% p.a? |
| Umesh Rathi: Notification is already issued on 25/11/2011 and from 1st December limit in PPF has been enhanced to Rs 1 lakh and interest rate is also revised from 8% p.a. to 8.6% p.a. |
| gyankhater: Can i claim processing fees for home loan in section 80c? |
| Umesh Rathi: No. Where as you can claim registration and stamp fees under section 80 C |
| traderp: Sir, I am a trader by profession. I trade Nifty and stock futures and options. On the profits, how should I be taxed ? Should it be as "Short term capital gain" or "Business Income" ? |
| Umesh Rathi: It would to income under the head business and profession. |
| rishijain125: Gd Even sir, I m working as software developer in noida. I have invest some money in share market since last 2 years. But I have no profit at all (No short term gain less than 1 year). Should I show my loss in my income tax file. Is it necessary? |
| Umesh Rathi: If you have booked any profit or loss then you should disclose the same in your income tax return |
| moizchhatriwala: Hello , Can you please answer that tax is imposed on total salary which comprise of Basic HRA Convance Fexi Pay or only on Basic Category shown in payslip ???? |
| Umesh Rathi: Tax is imposed on your gross salary less any allowances or deductions allowable |
| jitendra_raghuw: hello sir, can i get income tax benefit on personal loan. |
| Umesh Rathi: If you have taken personal loan for any business or profession then only you can claim it as allowable business expenses. Otherwise there is no tax benefit available. |
| aaans1977: i want to invest in nps for tax saving. please advice from where i can open nps account. |
| Umesh Rathi: pfrda has appointed various point of presence fro opening NPS account. Detail list is available on www.pfrda.org.in |
| rameshchanagoud: what is the tax implications UNDER DTC for whosoever has invested on 20/12/11 in FMP as par as double indexation is concerned.will they get that double indexation benefit or not . |
| Umesh Rathi: As per proposed DTC double indexation will not be available. |
| kumar_com: Iam salaried and in 30% tax bracket. I have tax exemptions under 80c for 1 Lk, 20k in infrastructure, HRA exemption. can you suggest any other ways of saving tax?? TIA |
| Umesh Rathi: You can claim deduction Under section 80 D for medical health insurance premium for your self, spouse and dependent children paid up to Rs 15000 and aditional of Rs 15000 can be claimed for your parents mediclaim. (In case of senior citizen dedction would be 20000 instead of 15000). |
| arvindgupta23: Dear Sir Please guide which one is better option? Investing in Tax Savings FDR or PPF as FDR gives more rate of interest as comparison to PPF |
| Umesh Rathi: Interest income from PPF is tax free where as interest income on FDR is taxable and would be clubbed in the income of respective year. Lock in period in Tax saving FDR is 5 year where as in PPF withdrawl is allowed from 7 th year(from the date of opening. |
| rameshchanagoud: Can i get tax exemption for pension life products or not |
| Umesh Rathi: Yes can claim dedction under section 80CCC |
| c.nagakrishna: Good evening sir, Please provide us the info elss any use once DTC implemented in 2012 |
| Umesh Rathi: Elss investment is a single time investment. This year you can invest in Elss and claim the deduction but as per proposed DTC no deduction will be available |
| nrs0916: Can I rent part of my flat, If yes then can I claim municipal tax reduction and 30 % of Rent from Gross. and show balance asmy Income nrs0916 |
| Umesh Rathi: Yes you can rent part of your flat and claim 30% standard deduction from the rent received. Whereas deduction of municiapal tax will be allowed on proportionate basis |
| kkk12383: i had purchased residential flat in 2007 in Rs 2200000 and taken loan from bank. from 2007 every year i am availing benefit of principle repayment and intrest on housing loan. this year i had sold my flat in Rs 3150000 and purchased independent bunglow in Rs 6200000. What Would be my tax liability? |
| Umesh Rathi: As you had hold the flat for more than 3 years the gains would be long term capital gain but as you have invested in residential property so there will be no liability of capital gain tax. But as you have sold the flat before 5 years so the aggregate deduction allowed in past years shall be deemed to be your income of such previous year and shall be liable to tax in the assessment year relevant to such previous year. |
| aaans1977: i am salaried employee and lives in flat, which is in the name of my mother. can i claim HRA if i pay rent to my mother. |
| Umesh Rathi: For claiming HRA there is no restriction on paying rent to mother but for safety purpose you should pay the rent every month though cheque and obtain rent receipt and your mother should also declare such income in her income tax return. This is only beneficial if your mother is in lower tax bracket. |
| tiya1986: i am a businessman and pays rent for my house.can i claim any deductions for rent paid. |
| Umesh Rathi: You can claim deduction under section 80GG maximum up to Rs 2000 p.m. |
| sssuren: i have purchased residential flat this year and paid registration and stamp charges. can i get anyincome tax benefit on registration and stamp charges? |
| Umesh Rathi: You can claim deduction under section 80 C for the registration and stamp charges on purchased residential flat. |
| sun198383: i leave in noida and pay Rs 18000 as rent. i claim HRA on the same. Recently i have purchased flat in my home town aligarh. for which i have taken loan from bank. can i claim tax benefit on both home loan intrest and HRA? |
| Umesh Rathi: Yes you can claim deduction on housing loan interest as well as exemption of HRA. |
| dev_goyalindore: i want to invest in infra bonds for tax saving. what factors i should see before investing in tax saving infra bonds? |
| Umesh Rathi: Rating is the important parameter while investing in tax saving infra bonds. You should prefer AAA or AA rated bonds |
| rvd500: hi, wht is fbt? |
| Umesh Rathi: fbt is frienge benefit tax. It is now abolished. |
| nrs0916: Can I invest more than One Lac in P.P.F. I know I can claim for tax benefit only one lac/annum. The purpose to invest more than one lac is to get exempt on interest. nrs0916 |
| Umesh Rathi: You can not deposit more than 1 lakh in ppf |
| nitu80: For last Financial year I am suppose to get some refund from IT Dept. But I have provided a wrong bank account number. I have checked this in their website. Could you please help as how to update the bank account details. |
| Umesh Rathi: You can update your bank details by calling on helpline number of central processing center banglore of income tax department |
| pravinbhati1985: CAn you please tell me the short term investment plan for tax savings. |
| Umesh Rathi: Minimum lock-in for tax saving investment is 3 years in ELSS Mutual Funds. |
| c.nagakrishna: sir I was investing 3K per month in elss scheme and stopped last year. can I continue to invest in elss from this month onwards for next two years. Will i get tax rebate in the next year...with DTC |
| Umesh Rathi: In current financial year you can claim dedction.Whereas as per proposed DTC this deduction is not available. |
| ap-amitpaliwal: hello sir,: Please tell Whether purchase of Fixed Assets can be applied against revenue income in a particular year ? |
| Umesh Rathi: You can do it but no tax benefit is available. |
| arvindgupta23: I a salaried employee and receiving daily allowance and travelling allowance. Do I have to show that also in income tax returns? |
| Umesh Rathi: You need to show the gross income as per form 16 |
Section 80DD
Deduction of Rs.40,000/ - in respect of (a) expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependant relative. (b) Payment or deposit to specified scheme for maintenance of dependant handicapped relative. W.e.f. 01.04.2004 the deduction under this section has been enhanced to Rs.50,000/-. Further, if the dependant is a person with severe disability a deduction of Rs.1,00,000/- shall be available under this section.
