Chat Transcript
15 Dec - 10:00 hrs
Lovaii Navlakhi | Managing Director and Chief Financial Planner, International Money Matters
Income Tax guide for the taxpayer
Chat Transcript
| moderator: Dear Moneycontrol user, welcome to the chat session with Lovaii Navlakhi, Managing Director and Chief Financial Planner, International Money Matters who will answer your queries relating to tax. So fire away your questions! |
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| s25: suggest any good investment for maximum tax saving ? |
| Lovaii Navlakhi: Hi, Under 80C- you can save upto Rs.1 lakh and 20,000 more under 80CCF. Medical insurance premium is also eligible for deduction under Sec 80D. If you stay in a rented premises, you can claim HRA. |
| sanjeevsai: I am staying in a rented house and constructing a house currently. I have taken loan from bank for construction and I am paying the pre-EMI. Do we have provision for claiming both HRA and interest subsidy at the same time? What is the best way I can reduce my tax burden in this situation? |
| Lovaii Navlakhi: Hi, Yes, you can claim both HRA and interest subsidy. If you let out the new property, you can claim unlimited interest as deduction, if it is self occupied that is limited to 1.5 lakhs |
| dilipkc6: i have no income above 1.50 lacs , so i could not filed it return file from 2008-09 so what can i do |
| Lovaii Navlakhi: Even if your income is below 1.5 lakhs, it makes sense to file returns; start from filing for the 09-10 |
| alok_recd: hi, I am living in singapore for past three years, so I have become an NRI. REcently i have bought a house in my home city, in all cash deal. This is the only property I have under my name, and the purpose is purely residential. While buying this property, Was i required to declare somewhere that I am an NRI, and obtain some kind of approvals? Do i need to pay wealthtax on it? |
| Lovaii Navlakhi: NRIs cannot invest in agricultural land, so there is no difference really. Wealth tax- what is the total of your assets in India- it depends on that.. |
| shekhar_2000: I have a residential house at noida and not self occupied hence rented. Also i have taken loan on the property. I am a business man query is does the loss arrising from Income from house property after considering rent recived be set off against my Income derived from Business. or it is to be carried forward to next a.y. |
| Lovaii Navlakhi: Hi, the loss from house property can be set off in the first year and subsequently can be carried forward for next 8 years and can be set off against income from house property only.. |
| a033208: Is Policy Premium and Pf Taxable? |
| Lovaii Navlakhi: Policy premium is deducted from your income upto Rs.1 lakh in a year and PF is taxable if the account has not completed 5 years |
| beingjigar: my first job started on 1st sep. 2010..my annual income is 2.04lacs...so should i file nil tax returns??? even if not compulsory,will it be good to file nil tax returns?? |
| Lovaii Navlakhi: It is good to file your income tax returns even if there is no tax payable; if the company has deducted any TDS- you can then claim a refund. |
| pramodgangtok: sir i want to make my it file in this regard whom to approach |
| Lovaii Navlakhi: You can start filing returns online @ http://www.incometaxindia.gov.in/ or approach a Chartered Accountant |
| parashuramkn: parashuram k n: I have retired from service on 30.09.2011 at the age if 60. I want to know for the F/E 2011-12 can I pay tax as senior citizen. Or upto 30.09.2011 as normal individual and beyond 30.09 as senior ctzn. I have received gratuity,commutation value and leave encashment at the time of retirement. Whether the tax to be payable on these also. How to show above in the return?. |
| Lovaii Navlakhi: If you have completed 60 years of age in that particular year, you can file returns as senior citizen; yes you have to show income from gratuity etc in your IT returns; the company will mention these in the Form16. |
| alok_recd: Also, Since i came out of India three years back, I have not been fileing tax returns in India. I do have income in india by the way of interest in FDs, but that is not over 1.5 lacs to come into tax bracket, and there is a 10% TDS on that. I am not concerned about getting this TDS refunded. but can there be any fine for not filing TAX returns? Also, I haven |
| Lovaii Navlakhi: There will be no fine, but filing returns is quite simple.Check http://www.incometaxindia.gov.in/ You can even do it online and refund will be credited directly to your account. |
| dcoolcat10: Can i claim tax saving more than 1 lac(80C) with mediclaim (80D), house loan, section 80E, 80G etc. |
| Lovaii Navlakhi: If you have interest deduction for home loan, then that is extra. Else, there is nothing much you can do. |
| p_saha3: a)How much Bank interest amount is exempted for Sr.citizen ? b) Is post office MIS interest is exempted ? How much amount. c) Is Post office Sr.Citizen scheme interest is exempted ? |
| Lovaii Navlakhi: Hi, Bank interest, post office MIS interest and Senior Citizen interest are all taxable. |
| beingjigar: sir can i file itr-1 for last fy2010-11 & 2009-10?? how can we submit it return directly to income tax office?? |
| Lovaii Navlakhi: Yes, you can file for 2 years together not beyond that..you can file online at http://www.incometaxindia.gov.in/ and follow instructions to send directly to IT office |
| dcoolcat10: Is maximum limit for saving is 1.20 lac (saving & infrastructure bond)? Saving under 80D, 80E, 80G included in this maximum limit of 1.20lac or it is extra than this limit. |
| Lovaii Navlakhi: 80D and other sections is extra |
| shekhar_2000: Sir, as per your querry of sanjeevsai u said he can claim both is it not mandatory for the person claiming interest that he should have completion certificate from the authorieies. and pre emi interest is claimable in five equal installment starting from the year of completion. As per my information he can only claim HRA and interest paid preaquistion can be claimed in comming a.y |
| Lovaii Navlakhi: Yes, he can claim it after construction is complete and after ammortization over 5 years and he can claim HRA only if he is actually paying rent. |
| ramasubramaniam: Who all in my family can I take cover for medical insurance for the tax benefit? |
| Lovaii Navlakhi: Family for 80d means - Self, spouse, kids, parents |
| rikku.thakur: except for the 1 lac 80C, health insurance premia & 20K infra bonds are there any other tax saving options |
| Lovaii Navlakhi: interest for home loan, 80G- donations |
| yafaheem: When remitting money from the middle-east, does it make any difference in tax treatment if I remit it to my NRE account or to a local savings account? Thanks |
| Lovaii Navlakhi: If you are an NRI, you cannot hold a local SB account, you need to convert it to an NRO account. If you transfer it through NRE, you can repatriate it- tax treatment should be the same. |
| yafaheem: Can my wife open an FD and submit form 15H to avoid TDS. The source of money would be what she has accumulated over the past two years from household savings |
| Lovaii Navlakhi: Yes, she can. |
| svanaja1952: Could you kindly elaborate on what Advance Tax means and whether it is necessary for a central govt servant retired from service to adhere to this when is annual pension plus interest on bank savings does not exceed Rs 5 lacs p.a |
| Lovaii Navlakhi: Advance tax means estimating your income for the entire year and paying tax in advance to the government. There should be TDS deducted; hence no advance tax will be payable |
| jayanthmadhur: Is it worth buying the infrastructure bonds - under 80CFF - considering the facts like: Lock-in period, limited sell options after 5 years, taxable returns, capital gains, plus the inflation factor at the time of maturity (10 Years). I am not seeing any major benefit other than the tax benefit what we get now. What is your suggestion? Thanks in advance. |
| Lovaii Navlakhi: Yes, there is a deduction of 20,000 and the returns are fixed for the period. If you consider reducing interest rate scenario, it is a good option. |
| ramasubramaniam: Say I win some money in KBC. Will they deduct the tax and give me the money or can I give them something like Form 16 or so and say that don |
| Lovaii Navlakhi: They will give you the money after deductions as lottery income and it cannot be setoff against any losses. |
| habibmohamed: I sold an apartment in Cochin recently, but the land portion was shown to have appreciated by a whopping 300% as per the revenue guidance valuation, whereas I didnot make a profit after applying the indexation. Do I have to pay tax on the purported capital gain on account of the value of the land having on up on account of applying revenue guidance valuation? |
| Lovaii Navlakhi: The tax will be payable on the actual gain after indexation and from the amount received from the sale. |
| satish0187: i am taking deduction of housing loan can i Claim deduction of house rent allowance |
| Lovaii Navlakhi: Yes, if you are actually paying rent. |
| rikku.thakur: is individual contribution to NPS exempted. i have opened this account in my personal capacity and not office sponsored. |
| Lovaii Navlakhi: As per current provisions, withdrawals under the NPS attract tax under the EET (exempt-exempt-taxable) system, which means that while contributions and returns to the NPS are exempt up to a limit, withdrawals would be taxed as normal income (EET). |
| swaminathan: Is the interest on infrastructure bonds taxable? Normally which is the better option, annual or cummulative? |
| Lovaii Navlakhi: Yes, interest is taxable. Annual payment can be opted for. |
| satish0187: I am getting transport allowance Rs 1500/- p m how much transport allowance allowed in income tax act |
| Lovaii Navlakhi: Upto Rs.800 is tax free. |
| veenitbhayana: Dear Sir, Please advise if I withdraw my last company PF, how will be the tax calculated on the same.Is there anyway to save the tax on same. |
| Lovaii Navlakhi: If the account has completed 5 years, there will be no tax payable. |
| Lovaii Navlakhi: One other way to do this is to transfer the old company PF to the new company.. |
| rikku.thakur: a rejoinder to my earlier question. is individual contribution exempted included in the overall 1 lac limit or is it beyond that. |
| Lovaii Navlakhi: I presume you are talking about individual contribution to your EPF account- it is included in the 1 lakh limit of 80C. |
| ashokmishra07: is the lock-in period of 5-year in Infra-bonds getting reduced to 1-year, as appear in some news articles.Will the individuals will also get that benefit, incase it is happening? |
| Lovaii Navlakhi: As of now, that is not the case. However, if that changes and the 80CCF is not withdrawn- then you can still claim the benefit. |
| dcoolcat10: Last Year FY 2010-11 (AY2011-12) i have some short term capital loss (by share sell/ purchase).....Can i claim or show this loss in my current year assessment to save tax. |
| Lovaii Navlakhi: It can be carried forward for 8 years and set off against both long and short term capital gains |
| satish0187: I am taking benifit of housing loan of our one house situated at dhanbad now i want to purchase one flat at new delhi,can i claim income tax benifit of new flat delhi instead of Dhanbad |
| Lovaii Navlakhi: Yes, you can change it. You can claim the one most beneficial. |
| swaminathan: Are capital gains laws the same for investments in foreign companies and mutual funds? |
| Lovaii Navlakhi: Yes, capital gains laws are the same for investments in foreign company shares and mutual funds. |
| agarwalam: While leaving my old company in sep2011 I made a payment of 2.43lac against service bond, training bond and notice pay.I would like to know if this 2.43lac can be reduced from my salary for tax purpose. |
| Lovaii Navlakhi: I am not sure about this, pls check with your Chartered accountant. |
| Lovaii Navlakhi: Thank you for your questions. |
Section 80GG
Deduction available is the least of (i) Rent paid less 10% of total income (ii) Rs.2000 per month (iii) 25% of total income.
