Life & Tax
Kindly advice, is it mandatory to file the income tax return even if the tax payer crosses 65 years of age? At what age, the filing of tax return is not necessary? Is it 70 years? Kindly enlighten on the subject and oblige. [firstname.lastname@example.org] Life & Tax
“‘In this world nothing can be say to be certain, except death and taxes.” Benjamin Franklin, 1817. Still after 200 years, in this world nothing can be said to be more certain but the death and the taxes. Life & taxes go hand in hand. Irrespective of the age, sex or status of an individual taxpayer, no escape is available from the tax liability or return filing provision. If income exceeds the basic exemption limit, an individual is duty bound to file the return of income. Only benefit to Senior Citizens is available in the form of higher basic exemption limit. [Other readers may note that partnership firms/ companies are required to file its return of income even if it doesn’t have any income during the relevant year. Non filing would attract the penal consequences.] Life & Tax
If a person is having business of hundi (borrowing money & lending on own behalf), then how would he shows his receipts from such business in income-tax? Is it is to be show in head under “Income from business”? If yes then how to present it? [Ashish Panjwaniemail@example.com]
The income of the nature referred to in the query would be taxable under the head “Income from Business”. The entire interest received would be shown as gross receipt whereas the interest paid & other expenses incurred for earning the income like telephone/mobile, salary etc could be claimed as deduction.
I am a Govt. employee since 2011 and purchased a readymade flat in Ghaziabad in Dec-2012 with my savings, financial help from my father & Brothers, and also taken loan of Rs. 10 Lacs whose installments are being pay by me only. Registry was do in my name. Last year, my income from office was below the taxable limit and so no tax deduction liability was there. As I was new to the job & was not knowing the procedure, I haven’t taken prior intimation letter for taking the property. In order to allow the claim of housing loan, my office is demanding “prior intimation letter for taking any property” & in absence they are not admitting the claim. What is the remedy? What should I do to get the income tax benefit on the same? [Manoj Bhakuni- firstname.lastname@example.org] Life & Tax
The benefit of housing loan in the form of deduction u/s 24(b) toward interest payment & u/s 80C towards repayment of principal portion of housing laon can be claimed by you at the time of filing your income tax return even if the same is not considered by your employer for any reason whatsoever.
I sold a house for Rs 60 Lacs but the buyer paid me Rs. 59.40 Lacs only after deducting & paying Rs 60 thousand as TDS which is 1%. I invested entire amount in 54EC Capital bonds of NHAI within the stipulated period of 6 months from the date of sale deed in AY 2014-15. In my IT Return, I sought for refund of the said TDS amount of Rs. 60 thousand. I seek your opinion as to whether I am entitle for the refund or not? [R.S. Chaudhari, 70/6, Nehru Nagar, West Bhilai –email@example.com]
Any Long Term Capital Gain (LTCG) arising on sale of a capital assets be it house. Plot, gold etc can be claim as exempt by investing the amount of LTCG. In the specify capital gain bonds issue by National Highway Authority of India (NHAI). Or Rural Electrification Corporation (REC). The interests offered by the specified bonds issued by NHAI/REC are very low as compared. To other alternate investing option like bank FDR, debt bonds etc available with the taxpayer. In you specific case, you have investe entire sale amount in purchase of the specify bonds whereas tax saving purpose could have been achieve by investing the amount of LTCG only. Further, taxpayers are under the wrong notion that interest receive from the bonds is tax free. It’s not true, it is taxable.
Coming to specific part of your query. You can get the credit of Tax Deduct at Source (TDS) in respect of Rs. 60,000/- against sale of your property & would be able to get back the refund as per your claim in the income tax return.
Life & Tax