Comment posted on Income tax calculator for India by seemant.
Sir,
I am PSU employee. In my form -16 provided by my employer one of my premium paid in march 12 not included which is eligible for 80C deduction. So while filing ITR online after final XML file upload one print needs to be sent to Banglore office of Income Tax. Should I need to sent that Premium reciept photocopy to IT Banglore office along with the ITR -1 copy.
Is interest earned on saving bank accont taxable? Also interest earned on Fixed Deposit is taxable or not? If yes where to put that component in ITR-1
@CMU
In FY 2011-12 (AY 2012-13), both interest from saving bank account and fixed deposits are taxable. Same needs to be put in Row 43 (income from other sources) section.
Hi Pankaj…i have a regular problem regarding Interest Income every year and hope you can help.
I have some FD’s running across FY’s, but the Banks accrue interest on them after the end of each FY in May.
So for FY ending Mar 2012, they added interest to my FD’s on 15 May 2012. They also deducted 10% TDS (around 10K).
Now after this Interest my total tax liability increased from 20% to 30%, so i paid another 20K TDS on that interest in May 2012 after seeing the Interest income.
Since the Interest was only deposited on 15th May 2012 for FY 2011-2012, am i liable to pay Interest penalty under Sec 234 B / C because the TDS was not deposited by Mar 2012 (obviously i did not know about that income in Mar 2012) ?
@Vikas
Bank may have only deposited TDS in May but Interest may have accrued in March itself. Its standard practice to pay TDS by May for previous financial year.
Bank should have already shown this accrued interest in your bank/fixed deposit statements.
You should check form 26AS and check, in which assessment year the interest has been reported. If its AY 2012-13, then you will have to pay additional penalty u/s 234B.
Hi Pankaj….many thanks for your reply.
In Form 26AS the date of payment is 31-3-2012 and date of Booking is 15-5-2012. The assessment year is 2012-13.
As soon as i saw this in the Form 26AS (which takes atleast 2-3 weeks to update), I paid the additional TDS in Apr -May 2012.
I don’t think it was possible for me to know the interest income prior to 31-3-2012…..so is it logically right for me to pay penalty on this ?
@Vikas
If the pending tax amount would have been less than 10K, there would not have been any issue as penalty is not applicable below that amount.
Income tax department may send you notice with extra tax demand because of their income tax computation. You have to fight with them with these proofs and prove that it was not in your hands.
I would advise you to pay whatever is the interest amount u/s 234B and solve the issue. It would be less than 500 Rs I guess.
Thanks Pankaj……yeah i will take your advise.
But tell me one thing….i noticed that you only mentioned 234B in your reply, but the same logic will also apply for 234C since i did not pay 100% of tax by 15 March, so i will even will have to pay that. Do you agree ?
@Vikas
As interest was accrued on 31 March, tax liability u/s 234C may not apply.
Hi Pankaj…..i tried using the available online tax calculators and after entering my details, by default they estimated about 2300/- as additional interest penalty to be paid as part of u/s 234C (apart from 700/- in u/s 234B). The reason for that is that they do not take into account the date of interest income. I guess i will to pay the additional 3k penalty for no fault of mine.
I think there is definitely something wrong here….either the last date of paying tax should be changed to April end OR the banks should be asked to credit interest income well before March end. This is really frustrating.
@Vikas
You can also try computing interest penalty with income tax return form. You can skip paying additional interest amount as interest was accrued after last date of Tax submission (15th march). In case a notice comes from IT department, you can send them form-16A from bank to prove same.
Dear Pankaj
kindly let me know how can i invest in NPS for my retirement as i am working in private sector
@Arun
Read more details about NPS here: http://www.pankajbatra.com/india/new-pension-scheme-nps-india/
HI this “Financial” year first three months went for internship and then 1 month holiday and then my emplyment started. So does the income from intrenship amount gets added to my total income(already 10% tax paid for internship amt)?
If so where to get the details of how much i have to pay to the IT department?
Thanks
@Balaji
Yes, internship amount would also be added to your taxable income.
You would need to recompute tax on total year’s income and match it with total tax deducted by all employers. If there is some tax pending, you would need to pay that before filing income tax return.
You can use income tax calculator to compute income tax.
Hello Pankaj,
Can you pls help me with the below :
I bought a residential flat in NCR and took possesion in dec 2003. The property was registered in june 2004. below are the details :
Purchased @ 1625/ sqft (area 1150sqft) = 18.7lacs But was registered as per the circle rate of 1200 /sqft x area 1150sqft = 13.8lacs Parking charges : 35k registration charges : about 1.5lacs Power back up at 1 lac So total registered value : 16.65 lacs
Today the market value is about 1.3crores
My question is :
I wish to move to another state in India and utilise this gain..
1)What would be my tax liability if I purchase the other property at approx 50lacs and keep rest in bank to earn interest ? 2) can I purchase more than one property and claim tax benefit ? 3) I am a single owner… what if I become a joint owner with wife, would there be any benefit ? Can I then buy 2 properties ?
4 ) what are the other options for me to claim tax benefit and also have some liquidity of the rest of the amount….
Looking forward for your expert advise and suggestion if any ..
regards, Aditya
@Aditya
You would have around 1 crore of long term gains from this sale.
1. If you buy a new residential house property for 50 lacs, then you would need to pay 20% income tax on remaining 50 lacs unused long term gains.
2. Tax benefit is only available against a single residential house property and not on more than that.
3. If sold property is in joint names, then each owner would have his/her own long term gain share in same ratio as they have in property. So each can then invest into separate property to save income tax.
4. You can also invest into capital gain bonds u/s 54EC within six months of sale. These have lock-in of three years. Max investment limit in these is 50 lacs per financial year.
Hi Pankaj,
Please help me calculate my payable income tax. I have tried various options, but could not understand. My company is tax exempted, but as employees we need to pay individually. My basic salary per annum is 2.86 lac ( total CTC is 4.60 lac per annum that includes HRA, LTA, PF, Medical and communication allowance), and the total savings under various tax schemes like LIC, MF is around 60k.
Please guide
Acharya
@Acharya
Please download and use income tax calculator to compute your income tax.
Sir,
I am PSU employee. In my form -16 provided by my employer one of my premium paid in march 12 not included which is eligible for 80C deduction. So while filing ITR online after final XML file upload one print needs to be sent to Banglore office of Income Tax. Should I need to sent that Premium reciept photocopy to IT Banglore office along with the ITR -1 copy.
@Seemant
You just need to declare 80C deduction in ITR. There is no need to send any proof/document along with ITR-V to income tax department.
If an individual is repaying house loan where principal and interest are both paid in EMIs (monthly), what is the benefit which he would get ? Please explain
@Dr Gopal
As per section 24, for self occupied house, home loan interest up to Rs 1.5 lakh would be allowed for deduction.
Home loan principal repayment can be claimed for deduction u/s 80C. Max allowed deduction u/s 80C is 1 lakh.
Hi Pankaj,
I claimed HRA till Mar-12, but had taken a Home Loan during Feb-12 and have paid the pre-EMI and 1 EMI for the Feb & Mar-12 and I had occupied the house only in end of Mar-12.
1. Can I claim both the HRA and the EMI which I payed for Feb-12 and Mar-12, as the HRA has been reflected in my payslip, so how can I claim the EMI and under which section? While filing IT returns?
2. The company has deducted under Sec80D Mediclaim of Rs 7391 in my form 16, additionally I have taken an Home Suraksha Plus policy from HDFC Ergo for an amount of Rs 143191/- for the housing loan, so can I claim this under any section wile filing IT returns?
@Vinod
Once you got possession of your own house, you won’t be eligible for HRA exemption.
As you got possession in March end, you can claim both home loan and HRA benefits for Feb-March 12.
You can claim home loan interest benefit u/s 24 as loss from house property and principal payments u/s 80C while filing ITR.
Home Suraksha Plus policy is not a health insurance policy but kind of life insurance. It should be available for tax benefit u/s 80C. Check policy documents for applicable section for tax benefit.
Thanks for you prompt response Pankaj
Dear Pankaj,
Thank you very much for this very informative and useful portal. I am self emplyed and have been regular in depositing tax and filing returns for past few years. But this year for some personal reasons i missed depositing income tax in march 2012, for FY 2011-12. Please can you advise what shall I do now, as date of filing of return is 31st July 2012. Can i pay now? what will be interest/penalty applicable?
Please help.
rgds
Ajay
@Ajay
Yes, you can pay now. There may be interest penalty payable u/s 234B and 234C.
Income tax return form automatically computes penalty amount.
If pending tax liability is less than Rs 10,000 there won’t be any interest charged.
Thanks Pankaj for your prompt reply.
Can I deposit tax and file return next month or July 31st is final deadline?
@Ajay
If you file return after 31st July, another penalty would arise u/s 234A
TDS certificate issued contain 6 digit number at top right.
How to find 8 digit TDS certificate number, required to be provided in the return form.
Thanks for your input
@Jayanta
Seems like there is some issue in return form. You can try putting six digit code.
Also unique TDS Certificate Number in return form is not mandatory, so you can also skip that.
Thanks Pankaj, for your valuable input.
Regards,
HI Pankaj, I am owning a flat together with my wife. The flat was rented for full year but the rent was deposited in my wife’s account. Though the EMIs went through my bank account. Now I need to ask is :
1. Is it mandatory for both of us to show the share of rent equally in our returns ?
2. My wife total income including her salary, small bank interest and the rant does not exceed INR 5,00,000. DOes she need to file return for AY 2012-13 ?
3. Can I show 100% of income from HP in my return ?
4. Can refund be availed against Loss from House property ? or is it to be carried forward ?
@Anurag
1. Ideally yes, as you have ownership in flat, rent should also be paid to you in same share.
2. She would need to file returns as she does not qualify for 5 lakh condition, as she has income from not only salary and bank interest.
3. It would be good to show income in same ratio in which house is owned and contribution is paid towards EMI. There may be issues later in case notice is sent by IT department.
4. Loss from house property can be set off against income from house property. If they cannot be adjusted, they can be carried forward.
Thanks a lot Pankaj. I really appreciate this service of yours for social cause without anything in return. May God bless you.
Only one thing wrt point no. 3. Though we have joint ownership and home loan is also joint, the EMIs were paid by me. Can that be a problem too ?
@Anurag
If EMIs are solely paid by you from your income, whole tax benefit (Principal and interest) should also be taken by you only.
If your wife claims deduction without contributing anything, it can be an issue. If case income tax department calls for scrutiny, she would be asked to show account statements etc to prove that she paid for EMIs.
Hi Dada,
In the year 2011-12 I have worked for 2 company and I have both company Form-16′s.
But the deducition in only one company in other company its only one month so they are not dedidected any taxes.
Could please help me how to pay addtional duty and how to apply the returns.
@Raghunandana
This post has all necessary details: http://www.pankajbatra.com/india/file-income-tax-return-online-yourself/
Dear pankaj, I am confused with Form 26AS. The Problem is this that the figure showing in my 26AS Form of “Salary Paid” is not same either with the actual salary paid or the salary before deductions. May kindly clarify whether i have to consider that salary which is shown in 26AS or i can do my own calculation with the actual salary which i got from the employer?
@Gaurav
All payments by employer may not be reported in form-26AS. Payments when no tax was deducted won’t be shown in form 26AS.
You should put your actual figure (you can also find it in form-16 issued by employer).
Hi Mr Pankaj,
I filed my ITR online today. While doing so, I noticed that my last year’s ITR status was “Signature Missing”. I am planning to re-post the earlier ITR-V for last year. Please let me know if it is fine or I will need to re-uplod the xml and then resend the newly generated ITR-V. Do any penalties/fine come into picture for my case?
Thanks,
Siddharth
@Siddharth
You would need to send same ITR-V again with correct signature.
Just add a small letter with ITR-V stating reason for delay in sending (as ITR-V needs to be sent within 120 days of filing).
You may also call their call center number 080-26982000 to get more details.
Hi Mr Pankaj,
I had paid the self assesment tax using the chalan 280. I had calculated the amount that I need to pay. But on the bank’s website, there were seperate columns for tax, cess etc. I have put the entire amount in the tax. My Total tax was 55K and the self assesment tax to be paid was 7K. I had income from salary and FD. I did not calculate if any amount had to be in the cess bucket. Is this fine? If not, how do we identify the breakup of the total self assesment tax?
Thanks,
Siddharth.
@Siddharth
It won’t be an issue. If you have paid full pending amount, it would work.
However, Education cess is 3% component in total payable tax. For future, you may put same under different head.
i want to know yery easily about to calculate income and income on tax from every heading tell me plz i am a student of b.com final tell me books that help to me to calculate income tax.
Hi Pankaj,
I have two form 16 as I worked in 2 companies from 2011-Apr to 2012-Mar.
Now while ITR1 filing online, I noticed that the required amount of Tax is more than what is already deducted by TDS in the 2 companies. So I need to pay more. But in addition to that I noticed there is “Total Interest u/s 234A, 234B, 234C” which is also calculating some value and the figure is close to 1700 INR. Please clarify if I need to pay this amount or ignore.
@Arghya
As full income tax has not been paid before due dates, there is an interest penalty liability arising u/s 234B and 234C.
You will have to pay this penalty amount along with income tax.
sir pl give me information saving bank acct intress how much amunt is exempted
@Sonawane
For financial year 2011-12, there is no exemption on bank account interest. From FY 2012-13, Rs 10,000 is exempted.
I was a fixed term contract employee for 6 months and didnt have HRA component in salary although there was only PF deduction being done by company. Can I claim tax exemption on house rent amount paid for those 6 months? If yes, maximum how much per month if my monthly salary was 42000?
@Raghav
You can claim HRA deduction u/s 80GG upto Rs 2000 per month maximum.
Read more details here:http://www.socialfinance.in/questions/1915/can-i-claim-ta-hra-benefit-if-i-get-consolidated-salary