I t's that time of the year again. Time to get ready with your investments and taxes.
Were you prudent with your investments last year? Did they help you save tax? Or did you end up paying more than you could afford? What investment mistakes did you make last year? Are there ways to rectify them?
What investment options should you go for this year? What should you do to bring your tax liability to the minimum level?
In a chat on Thursday, direct tax expert Vikas M Gandhi offered some valuable tips. Here is the transcript:
Vikas says, Good Evening Friends
bachee asked, I have not filed my returns last year, as my previous employer delayed the FORM 16. Can I do it now? Is there a last date.
Vikas answers, at 2009-03-26 15:50:09 If you mean last year as Financial year 2007-08, then the due date for filing your return (salaried employee) was 31-07-2008. However you can still file the return & your return will be accepted by the IT dept upto 31-03-2010 beyond which you cannot file. nikhil asked, is it necessary to have a original tds certificate to ataacched with return to get refund
Vikas answers, You do not have to attach the original TDS certificate with your return. However enter the details from your TDS certificate correctly in your return to get the credit of the same. kumar asked, My father got arrears due to 6th Pay commission. HE got arrears for 2006, 2007 and 2008.I know the tax for the arrears of 2008 can be paid after 31st march. but what about tax liabilty of year 2006 and 2007 years arrears? Do He need to pay Tax before 31st March for these year?
Vikas answers, The employer while giving the arrears would be deducting the tax at source. However if the same is not done then you have to estimate your income and after reducing the TDS pay proper advance tax if your remaining tax liability exceeds Rs.5000/- in installments. If you do not do so it will attract Interest. For receiving arrears of salary ensure that you calculate the relief granted U/s 89. Shikha asked, Hi Vikas, I recieved an email from the IT department which had my tax stmt for the previous year. Can you tell me more about this, as nobody I know has received such emaails. Also, it has some mention about Unmatched Entries, can u tell me about this.
Vikas answers, The tax statement sent by the IT dept is for updating you the tax credits available as per their records. You need to match this with the actual TDS and Tax paid by you. If any amount does not tally then contact the person who deducted that tax since he might not have correctly filled in his TDS return. If it is tax paid with the bank, then contact the bank and do the same. This is the only way to ensure your correct tax credits are given by IT dept. rajaruna asked, Hi Vikas I am Rajesh last year i filed reurn in time and there was a rfund of 10200.- which is still pending. can you please inform me the procedure to follow-up and get the same at the earliest.
Vikas answers, You can write a reminder letter to your Income Tax office informing him the refund due and attach the photocopy of the Acknowledgement of your return. This letter should be filed with same office you filed your return. manu asked, Hi my CTC is 12.63/PA, I need to file IT retruns, can tell when and how to file, when is the last date for this, as I still expecting my employeer send Form 16(April end)
Vikas answers, The last date to file your return (salaried employee) for financial year ending 31-3-2009 is 31st July 2009. You can take help of a professional or there are various websites who can help you file your return online. Like, income tax website or other sites like Taxsmile.com etc sam asked, Hello, I didn't file my complete tax returns for the year 2007-08. I had switched my job and so filed tax returns only from the second employer. If I plan to file my returns now or later, what charges or fine will be applicable to me. Thanks in advance.
Vikas answers, If you have made a mistake while filing your return then you should file a revised return. You cannot file for the balance part missed.
You have to consider all your income i.e. both employees and other income if any, take all tax credits (TDS + taxes paid) then while a revised return which will be replacing your original return. This is the only way to set right the mistake. The difference in tax if any, will have to be paid along Interest on such tax payable as applicable for the short fall. PRABHAKAR asked, MR VIKAS GANDHI PLEASE LET ME KNOW WHAT IS THE DIFFRENCE BETWEEN, FORM ITR-4 AND ITR-2, FOR PERSONNEL RETURN
Vikas answers, Both the forms are income tax return meant to cover different types of income of an Individual or HUF. The form ITR-2 is to be used by a person (Individual or HUF) who has income other than Income from business. For a person (Individual or HUF)having income also from business than the applicable Form is ITR-4. stanly asked, is there exemption of tax liability available on short term capital gain I got by selling a residential flat purchased 24 months back from the date of sale.
Vikas answers, The exemption from sale of a residential house is only available if it was long term, for short term as per you case it is not available. You will have to pay tax and also make sure you calculate & pay the advance tax as applicable to avoid interest. HARISH asked, If excess TDS has been deducted, how do I get refund from IT dept.I m a salaried person
Vikas answers, When you prepare & file your income tax return declaring the actual TDS deducted any excess tax will automatically become your refund due in that return and the same will be refunded by the IT dept after processing. Sasidharan asked, I worked for a company in chennai for the first 8 months of this financial year and the next 4 months in Kochi for another company.In the first company they have calculated the tax and deducted it in my final settlement for the salary they gave.In the current company since my salary is less than 1.5 lakhs they have not deducted any tax for this financial yearfrom their end.Do i need to pay in the tax on my own through bank challan or can I leave it as such without paying anything as tax.
Vikas answers, You have to calculate tax liability on you total income including both salaries and take credit of the TDS. If it results in extra tax payable you have to voluntarily pay the same by way of advance tax or at least while filing your tax returns, else after filing the return the same will be demanded from you with interest and penalty. ajay asked, I had inheriated father's house in dec'08 which was purchased in 1998. The same house we sold in mar'09, what would be my tax implications, since I am in highest tax slab. what can be done to save the tax.
Vikas answers, Since the house you are selling is inherited from father and the same is purchased by him in 1998 the sale will result in long term capital gain. You can save this tax either by purchasing another residential house or invest the amount in capital gain bonds U/s 54EC within 6 months from the sale transaction date. firstname.lastname@example.org asked, After filing the ITR online, is it necessory to submit the ITR-V with the respective jurusdiction ITD or the assess can deposit the ITR-V with any nearest/ Local Income Tax Office. pl. clarify
Vikas answers, If you have done e-filing of your income tax return without digital signature then filing the ITR-V is compulsory. The filing has to be done with the same ward where you usually file you return. To my knowledge, so far there is no centralised filing available. If you desire to avoid this you should file the return by signing with digital signature for which many website support and the price of digital signature has also dropped substancially. There are many sites one of which is wwww.e-mudhra.com. AMAR asked, At present I'm giving 1500+ amount to my Advocate to file my return. is there any way to fill the form online w/o any extra fees. pls tell me how to file.Thanks
Vikas answers, If you want to use the service of a professional then you have to pay such charges, however as an alternative there are many websites which provide this service at a much reasonable charge, one of which is www.taxsmile.com. Vikas says, Thanks Friends that's all for today.