TAX REFUND
Query 1]
I had filed my IT returns for the Assessment Year 2009-10 electronically on 31-07-09, but still I have not received TDS refund. Kindly advice. [drkhoria@rediffmail.com]
Opinion:
- Income Tax Returns are processed by the department on First In First Out basis. Issue of Refund depend upon the earlier return pending with the concerned authorities and is subject to any defects/deficiencies that may be contained in the returns submitted. The exact status regarding your refund can be known from the concern authorities where you have filed your income tax return.
- You may write a letter to your Assessing Officer giving details of your return of income with a request to expedite your refund. Then, follow it up with personal visit with the Assessing Officer.
Query 2]
Please clarify the following. I am receiving pension of Rs. 1.80 Lacs per year & have interest income of Rs. 60,000/- from deposits jointly placed in the name of my wife & myself. Her name is first in the FDR & also in the S.B. A/c. Investment is done from my retirement benefits. My wife is a housewife & don’t have income. She is not filing any income tax returns. Please clarify whether I need to include this entire interest income as my taxable income or only half the amount is to be included being joint deposit holder? [shirishkumardeshpande@gmail.com]
Opinion:
- Where an asset is transferred by an individual to his or her spouse, directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live part, any income from such asset will be deemed to be the income of the transferor –[Section 64(1)(iv) of the I.T. Act, 1961]
- Effectively, entire interest income from FDR done by you from your retirement benefits will be clubbed with your income & will be taxable in your hands only even though the FDR is placed in the name of your wife (irrespective of her first name in the Bank FDR).
Query 3]
My wife is housewife & don’t have any earning source. She have a Demat A/c (First holder) & I am second holder. She is trading share market in future lot & incurred loss of huge amount of Rs. 1.50 Lacs (approx). I am a salaried employee in private industry & filing return regularly since last 4 years. My questions are
-
Whether she will pay any tax to income tax Department?
-
Any return form to be required? If yes, which form?
-
Any benefit to me for applying the tax file? [suresh_talmale@rediffmail.com]
Opinion:
- If the amount invested by your wife is out of the fund belonging to you, the income/loss will be treated as your income/loss and will accordingly be taxable in your hands only by virtue of provision incorporated in Section 64(1)(iv) of the I.T. Act, 1961 & elaborated in query No. 2 above. In this case, she would not be required to file her income tax return as the income/loss would be assessable in your hands only.
- If however the amount is invested out of her own funds (and not out of the fund transferred by you), the income/loss would be treated as her own income/loss and would be assessable in her hands only. In this case, as her income is below the basic exemption limit, she would be neither required to pay any income tax nor she would be required to compulsorily file the income-tax return. However, in such case it is advisable to file the return (in ITR-4 return form). On or before the due date of filing the same so as to be able to carry forward such loss for set off against the income in subsequent years.
Query 4]
I am working as a Teacher in a CBSE Brand school & as agreed during appointment in the school, I am getting 100% rebate on the school fees of my 2 children. However, the amount of fees is added with my gross salary as perquisite which has resulted in increased TDS on salary income. Is this correct? I shall be thankful if you can kindly elaborate / quote the legal provision to this effect? Further, I am not allowed the deduction available under section 80C. Why is it so? It is told to me that that since I am not paying the fees myself, I am not eligible for deduction under section 80C. Whether it is so? When the fee is added to my salary. Then logically I should be able to get the deduction on the same as well. Please guide. [Mrs. Gayatri K.]
Opinion:
- Section 17(2)(iii) clearly provides that the value of any benefit or amenity granted. Provided free of cost or at concessional rate shall be taken as perquisite. Income Tax Rule 3(5) states as under:
“The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institution is itself maintained and owned by the employer or where free educational facilities for such member of employees household are allowed in any other educational institution by reason of his being in employment of that employer, - the value of the perquisite to the employee shall be determined with reference to the cost of such education in a similar institution in or near the locality. Where any amount is paid or recovered from the employee on that account, the value of benefit shall be reduced by the amount so paid or recovered:
Provided that where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, nothing contained in this sub-rule shall apply if the cost of such education or the value of such benefit per child does not exceed Rs. 1,000 p.m”.
Therefore, the treatment by your Employer of the free education value as perquisite which is taxable in your hand is justified. - Deduction u/s 80C:
We agree with your submission. We are of the opinion that you are eligible for deduction. U/s 80C for the amount of tuition fees paid by your employer and treated as perquisite. Even though, the employer is unwilling to consider the claim u/s 80C. While working out T.D.S, we suggest you to claim it while filing your income tax return.
TAX REFUND
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