Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
In case of ESOP, the companies will deduct the taxes and then pay the amounts on the sale of shares. There is no indexation benefit available. You are subject to exchange rate as USD will be converted to INR. This depends on the sale of shares and the exchange rate applicable at that time.
Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
There is ambiguity here as to whether the 5 lacs is the gross total income or net taxable income. It is preferable to file returnsif the gross total income is above 5 lacs
block: i and my wife is senior citizen while my daughter is with me as unmarried, i have taken family mediclaim and premium rs 21000/-.how much i will get concession on itax for f.y.2012-2013.under section 80d. my adviser has informed that it has incrased,but full circular is not known to him, pl. advise.
Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
mayoorshah Since the assessees are senior citizen, you can claim 20K u/s 80.If however, your daughter was the proposer, she would get a deduction of 15K for self, 15K for parents and additinal 5K since you ar senior citizens totalling 35K
Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
Income earned under the US payroll and received in USD will be subject to tax in the US. In case you have gone for a short term assignment wherein you receive a per diem allowance, that is not subject to tax. Tax on income received in US will be payable there as per the tax bracket that you come under.If you are on Indian payroll, tax gets deducted at source and all the deductions and tax credit is here as per Indian IT laws when the retun gets filed.
Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
Whether Ulip can be continue or not, should be based on how good the terms of the policy are and the total cover that you have and need. If your financial planner suggests you to exit investing in this ULIP , you can invest the same 46K in ELSS if you do not have any contribution to EPF. Additionally you can take health insurance policy and save tax on the premium upto 15K for your family. If you cover your parents, you would get an additional 15K. This would be 20K if your parents are senior citizens.
Lovaii Navlakhi
MD & Chief Financial Planner, International Money Matters
Yes you have to calculate capital gains on your share of property after applying indexation. There are however means to save this tax by investing in another residential property or capital gains bonds.
nchari: Do we have to pay income tax on dividend income from Equity and Mutual Funds?
Balwant Jain
CFO, apnapaisa.com
As per provisions of Income tax Act, the company or the mutual fund is required to pay a dividend distribution tax directly before dividend is distributed to the shareholders or unit holders. So the dividends received by you from company on equity shares is exempt under Section 10(34) and income received from mutual funds are exempt under Section 10 (35) in the hand of the recipient.
mandarvs: What is the maximum deduction possible for interest paid on loan for a 2nd house which is rented out.
Balwant Jain
CFO, apnapaisa.com
There is restriction on interest paid on loan only for a self occupied house property which can be claimed under Section 24, to the extent ot Rs. 1.50 lacs. However there is no such limit upto which interest paid on loan can be claimed in respect of a house which is rented out. It is not material whether it is the only house or the additional house.
Balwant Jain
CFO, apnapaisa.com
So the proposed transfer of shares from your brother to you, may either be for a consideration or for without consideration. In case the transfer is without consideration, this will amount to gift. However as per the provisions of Section 56(2) gift from your brother is exempt from income tax, no one will have to pay any tax at the stage of transfer of the shares. However all the profits made on dealing with such shares whether intra day or otherwise will be taxed as your income and you will have to pay tax on profits made on such transactions.
Balwant Jain
CFO, apnapaisa.com
There is no restriction as regards the purpose for which you can use the sale consideration received on sale of any asset. So you can use the money received for the repayment of the loans.
arunjaroli176b: Sold one Plot and received two cheques in March 2004 which were cleared in the March 2004 in our Bank account, another two cheques were received in April 2004 and registery was carried in April 2004. Details of all these cheques are entered in the registered document.
Sale will be considered in 2003-2004 or 2004-2005 for calculation of capital Gain.
Balwant Jain
CFO, apnapaisa.com
For the purpose of determining the date of sale, neither the date on which you received the money is relevant nor is the date on which the agreement was registered. The relevant date for ascertaining the date of sale is the date of execution of the sale deed. So in case the sale deed was executed in April, the sale will be considered in 2004-2005 for calculation of capital gain. However if the deed was executed in March 2004 and registered in April 2004 the capital gains will be taxable in the year 2003-2004 and not 2004-2005.
Balwant Jain
CFO, apnapaisa.com
As per the existing provisions of the income tax Act, there is no provision for deduction in respect of expenses incurred for medical treatment of your family members. From current year as per Section 80D a deduction of Rs. 5,000/- can be claimed for expenses incurred for preventive health check up. Moreover as per Section 80DD, in case your new born baby is suffering from disability as defined under that provision you can claim deduction upto Rs., 50,000. In case the disability is severe the deduction can go upto Rs. 1 lac. The deduction under Section 80 DD is not linked with the quantum of expenses incurred.
pacs2100: Hi Sir,
I have invested in Commercial Property. I have taken Loan on that as commercial Loan.
I am doing Job and Paying Loan for Commercial Property.
Can I take benefit on Tax in interest paid for Laon?
is Commercial property Loan interest can be exempted for tax?
Kindly Suggest. if any other possible way for this.
Balwant Jain
CFO, apnapaisa.com
As per Section 24b of the income tax act, a person is entitled to claim interest paid on the money borrowed for the purpose of buying a property, income whereof is taxable under the head income from house property. So you can start claiming the interest paid on the loan for these property from the year in which you have taken the possession. Please note that the interest deduction available under Section 24 is not restricted to residential house property only. However the benefits of principal repayment under Section 80 C is only available in respect of residential house property and thus can not be claimed in respect of commercial property.
Balwant Jain
CFO, apnapaisa.com
I presume your wife became owner of the property in 2009 by inheritance and the property is residential house. Any capital gains arising on sale of an asset which is held for more than 36 months is treated as long-term capital gains and is taxed at fixed rate of 20.60%. Moreover you can avail the long-term capital gains exemptions under Section 54, and 54EC in respect of capital gains on sale of such property. Since your wife became owner of the property by way of inheritance, as per Section 49, the period for which you father held this property shall also be added to the period for which your wife held this property for calculating whether it is long-term or short-term. So the profits on such sale shall be treated as long-term. The exact tax liability will depend on the actual cost and sale price. However you can claim exemption under Section 54 by investing the amount of capital gains for purchasing or constructing of a residential house. You can also avail the tax exemption under Section 54 EC by investing capital gains in the bonds either of Rural electrification Corporation Limited or National Highway Authority. Please note that you can invest only upto a sum of Rs. 50 lacs in these bonds during one financial year.
hbhasin1992: sir i want to become a successful CHARTERED ACCOUNTANT and a tax consultant like you. sir, please advise what do i need to do?? reply ASAP
Balwant Jain
CFO, apnapaisa.com
For mastering any subject, you have to acquire and update the knowledge. In addition to acquiring the knowledge one has to learn how to apply the same. For acquiring knowledge please read the relevant newspaper articles, magazines, decisions of the judicial authorities like Tribunal, High court and Supreme court. For learning how to apply the acquired knowledge, you should work with a firm of Chartered Accountant or lawyers who specialize in the area of your interest. The process of acquiring the knowledge and learning to apply the same can be simultaneous.
