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Chat Transcript
20 Jun 2012 - 16:00hrs hrs
Balwant Jain | CFO
Income Tax tips for investors
Chat Transcript
| Balwant Jain: Welcome everyone on the Moneycontrol chat. |
| aliansari11: sir, i m student and earning money through tutions. how i can show my income for income-tax. income is less than 1,50,000 p.a. |
| Balwant Jain: Dear Ali;The tuition income earned by you will be taxable under the residue head " Income from other Sources". Even though your income does not exceed the taxable income. Obtain a PAN if not already obtained. I would advise you to file your return of income though the Income is not taxable. |
| vinugnath: Will the IT dept. ask for supporting documents ( copy of Infrastructure bond investments, LIC, Medical Policy ) when I file my returns online. |
| Balwant Jain: Dear Vinugnath, As per the current law, you are not allowed to attached any document while filing your return of income. So while filing the return of income you do not have to file the supporting documents but as and when your return is selected for scrutiny, the assessing officer can ask you to produce the supporting documents. And in case you are not able to produce the same then he can disallow your claim of such deductions. |
| dinakarsoma2: Hi sir,i am earning 6 lakhs per annum.I know that 2 lakhs is exempted in general and to avoid taxing my rest 4 lakhs can i show investments,hra,lta,etc for the rest 4 lakhs?if yes please let me know which investments wud be good in terms of returns and tax savings.tnx |
| Balwant Jain: Dear Dinakar, As far as your question of where to invest in order to take income tax benefits is concerned, the answer would would on various factor. The age of the person, the risk ability to the person, the time horizon for which you can spare the funds etc. For the people who are young and thus can take risk, the advice in normal times would have been to advise them to invest in Equity Linked Saving Scheme (ELSS) but considering the present economic situation this would not be advisable. However in my opinion the first option should be to invest in PPF because of the twin benefits. The contribution in PPF account gives to benefit u/s80 C and the interest is also exempt. You can invest upto Rs. 1 lac in PPF account. There are no other pure investment avenues for claiming tax benefits except those under 80C and NPS under 80CCD. while making investment in PPF please take into account other items like LIP, PF already contributed by you already as there is an over all limit of Rs. 1 lac. There are other avenues under Section 80 C like bank FD, senior Citizen Scheme deposit but in your case PPF is best in my opinion. |
| pankajdewan: an nri has his child in india. Can the nri claim chapter vi-a deduction (for pension received by him in india) by depositing money in ppf account of child. |
| Balwant Jain: Dear Pankaj, An individual who is an NRI can claim the deductions available under chapter VIA and specifically those mentioned under Section 80C, 80 CCD and 80D, However the benefit under Section 80DD for medical expenses of a dependent can only be claimed by a resident Individual. |
| arungaggar: My wife has interestincome of Rs 1,80,000/- Per year . I do not file her income tax returns . Is it OK. |
| Balwant Jain: Dear Arun, I presume that interest is only her source of income and she does not have any other income. As long as her total income does not exceed the exemption limit there is no problem even if she does not file her return of income. However please ensure to furnish her PAN to the persons including bank from where she gets her interest income failing which the payer of interest will deduct tax @ 20% and then you will have to file return of income just to claim that refund. |
| whatsupji: Sirji.. if I want regular yearly income and good tax savings can I go for FMP ? also are there any other good income funds which are tax effective.. |
| Balwant Jain: Dear Wahtupji, The returns provided by FMS are generally in line with those provided by fixed deposits of the banks as the major part of the investment by the FMP is made in certificate of deposits issued by the banks. What sets FMP apart from bank FD is the benefit of treatment of income on such FMP. FMP enjoy concessional rate of tax in case the tenure of FMP is for more than 12 months. This is treated as long term capital gains and you have the option to pay tax either @ 10% on unindexed profit or pay 20% after indexation. In most of the cases the long term capital gains after indexation are very small or even negative so effectively the returns are almost taxfree even for the people in the highest tax slabs. Against this interest on FD is taxable at the slab rate applicable to the assessee. Since you want regular income I would advise you to either invest in monthly income schemes of any debt fund or in balacned funds. Please note that FMP does not give you any monthly income. |
| nutritionsrikan: My wife is employed, and is a regular tax-payer. She lost her right eye in an accident. Just let me know if she could claim exemption under the "handicapped section" |
| Balwant Jain: Dear Nutrition Srikan As per the provisions of Section 80 U of the Income Tax Act any person who is suffering from a disability certified by a prescribed medical authority can claim a deduction of Rs. 50,000/- from his/her total income for that year. There higher deduction of Rs. 75,000/- is available in case the disability is severe. The person needs to obtain a certificate from a medical authority prescribed by the government under the provisions of Equal opportunities , Protections of rights and Full Participation Act 1995. Since your wife has lost her one eye she should be eligible to get this benefit. However this is a medical subject I would advise you to kindly contact the Chief Medical Officer of the district for further clarification. The certificate has to be obtained from a specialist working in government hospital in Form No. 10I of the Income Tax rules |
