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  • Harsh Roongta - Investment Adviser

    Harsh Roongta

    Investment Adviser

    DATE: August 24, 2015, 12:00 PM

    SUBJECT: Dos and don'ts while filing income tax returns for 2014-15




    Hello and welcome to the webchat with CA Harsh Roongta on the do's and don't while filing income tax returns for 2014-15


    Hello Everyone

  • N


    Will there be any security problems or fraudulent activities while filing income-tax returns?


    By whom Niraj - you are required to file the form and then you have to either sign the acknowledgement form and send to Bangalore or e-verify in the manner provided . So you have proper ability to verify what has actually been filed before you verify it. Please do not be paranoid about this and if you have any specific concerns beyond vague apprehensions of "security problems or fraudulent activities" please share the specific concern so that it can be addressed and and answered.

  • A


    In 2014-15, I purchased a flat in a housing society for Rs 88 lakhs. I took a bank loan of Rs 35 lakhs and Rs 30 lakhs from my father. I also deducted Rs 88,000 out of Rs 88 lakh in the tax which is reflecting in Form 26AS. I am a salaried person having source of income in the form of salary only. Should I declare the amount borrowed from my father funding in the ITR ?


    I have not fully understood your question. If Your question is whether you can claim deduction for the interest payable to your father for the loan the answer is yes the interest payable on the loan taken from your father to acquire the property is deductible. This will need to be enetered into in the relevant row in the calculation for "Income from House property". I dont see a provision or place for specific disclosure of the loan amount from your father in either Form 1 or 2A or 2

  • P


    For calculation of short term capital gain from debt mutual fund held for three years, is it required to take indexed cost? In ITR-2 there is no space to take index cost. Please advice how to calculate short term capital gain form debt mutual fund


    Short term gains are calculated based on actual cost only. Indexation benefit is not available for short term capital gains. In respect of debt mutual funds you will need to minus the original cost on a first in first out basis from the redemption proceeds and offer that to tax on the normal rates itself.

  • A


    For filing Income-tax returns for financial year 2014-15, what is the correct assumption for considering long-term capital gains? So what is long term- 12 months or 36 months?


    It would depend on the type of asset Anand. The 12 month period for long term capital gains only applies to 1) Securities (other than a mutual fund unit) listed on a recognised stcok exchange in India 2) Equity oriented mutual fund units 3) Zero coupon bond 4) non listed shares transferred between april 1, 2014 to 10 july 2014 5) mutual fund units transferred between april 1, 2014 to 10 july 2014 For all other assets the period of holding is 36 months

  • S


    I switched my job in May 2014; the tax for April 2014 was deducted on the basis my salary by my former employer. Similarly, my current employer deducted taxes for the rest of the financial year based on my investments and earning. However, I ended up paying additional taxes of Rs 8600 while filing my income tax return. Why is it that we have to pay additional taxes in case we've changed our jobs in a particular financial year? (I don't have any other source of income besides my salary)


    This has happened because your employer for April 2014 assumed that the total income payable by them was to be your total income for the entire year and hence would have deducted lower tax due to getting benefit of the initial exemption limit and chapter VIA deductions. Your new employer too only took the income paid by themselves to you and hence for the limited purpose of Tax deducted at source you got a "double benefit" of the initial exemption limit and chapter VIA deductions. Off course the "benefit" was only illusory since you would have ahd to pay the actual tax while filing your return of income alongwith interest, if applicable. ideally you should have informed your new employer when you joined about the income from the old employer and the tax deducted by him on it and then the same would have been taken into account by him while deducting your tax at source. This would have avoided the need for you to pay the amount while filing return.

  • B


    Do NRIs have to fill up schedule FA (Foreign Account details), if they have foreign accounts? In that case, can they fill up ITR 2A in case of no business income?


    Instruction sheet with Form no. 2 specifically mentions that "A resident assessee having any assets (including financial interest in any entity) located outside India or signing authority in any account located outside India, shall fill out schedule FA and furnish the return in the manner provided at 5(ii), 5(iii) or 5(iv)." Rule 12 allows NRIs to use Form ITR 2A provided they are not claiming any relief under section 90 or 91 (primarily dealing with double tax avoidance agreements and other credits of tax paid in foreign countries) and off course provided they have no business income

  • B


    This question is regarding the IT returns filings by seller of property of above 50 lacs is involved last FY. The buyer has not deducted tax at source and returned from 16 B, though all the details of seller such as address, Pan number etc are available in the agreement. What can the seller do, if the buyer has failed to do so and refuse to deduct / pay tax saying he is not aware of such laws at the time of buying property. Regards


    The seller has no cause for worry. The duty for deducting and paying the tax at source is that of the buyer and he may face penal consequences for not deducting and paying. As far as the seller is concerned please make sure that while calculating the advance tax payment liability (if any) and the final return you dont take this into account.

  • A


    Is there a procedure for verifying IT Returns online either through Netbanking or OTP on Mobile so that we do not need to physically post the acknowledgement in Form V to Bengaluru address of Income Tax Dept ? Please explain in details.


    Yes. you now have the option of using the electronic verification code that has been allowed recently. You can get the EVC by mentioning your aadhar number and then following the instructions while the return is being uploaded. This will be verifed on the basis of name, date of birth and gender as mentioned in the income tax return with the data available in the aadhar database and if matched an OTP is sent to the mobile number registered with UIDAI. This will be the EVC which you will need to enter in the tax department efiling site which will be used to verify you. A similiar provision exists for getting EVC through the net banking login of your bank.

  • R


    I work as a Manager in a pvt. co. drawing annual salary of 6.40 lacs. I live at my parents house and have savings of 33,000 towards LIC and 23,400 EPF deducted from my salary. HRA portion in my salary is 13000/- Is there any better savings plan which I can opt for tax reduction without having my investment held up for a long period and which can also give me good returns apart from tax benefits?


    The tax saving product with no lock in period is the "UTI Retirement Benefit Pension Fund" under section 80C (1) (xiv). This is a hybrid mutual fund (high debt component (60%+) and a small level of equity - upto 40%) available from UTI and has given pretty decent returns around double digits for long periods of time. But this is not suitable for a small duration investement as there is a very stiff exit load till the first 5 years. Risk - moderately high Another option can be equity linked savings scheme which has a 3 year lock in and has provided excellent returns in the past. ELSS by definition is a equity fund and the risk is - High. You can look at Tax saving bank FD or 5 year NSC as well.

  • D


    Is it ok if we don't file income tax return for proprietorship business after 31st Aug incase there is no taxable income?


    If your total income without taking into account the deductions under Chapter - VIA is less than Rs. 2,50,000/- and you are not caught in other provisions (presumptive taxation etc.) then you are right.