I earn R4,97,000 as salary and my interest income from savings bank account is R3,000 (which has been reported to my employer and tax has been deducted) in FY13. Can I claim the exemption from filing return of income for FY13?
— Anupam Sharma
A CBDT notification dated February 17, 2012, providing exemption to salaried people with an income of up to R5 lakh from the requirement of filing of return was applicable only for FY12. A press release dated July 22, 2013, clarified there is no such exemption for FY13. Thus, you will have to file the return of income for FY13.
I am a risk management consultant and received fees without TDS. Do I need to pay advance tax?
— C P Rao
As per Section 209 of Income Tax Act,1961, tax deductible or collectible shall not be reduced from the amount of tax calculated on estimated income to determine advance tax payable if the payer has paid or credited the income without deduction or is received or debited by the recipient without collection of tax. Therefore, as you have received fees (on which the tax was deductible) without deduction, you will be liable for payment of advance tax.
I sold my house and earned a long-term capital gain of R15 lakh in July. I wish to claim exemption from capital gain tax under section 54. What is the time limit to purchase another residential house?
— Manish Kumar
As per Section 54, you can purchase a house within two years from the date of transfer. If you wish to construct a house, then the limit is three years after the date of transfer. In case, you are not able to utilise the amount of capital gain for purchase or construction of the house before the date of furnishing of the return of income, then you can deposit the same under the Capital Gains Deposit Accounts Scheme. The amount should be utilised for the purchase or construction with the mentioned period .
I am an employee with a pharmaceutical firm. The firm has given me some furniture for use. Do I have to pay tax for using them?
— Himanshu Bhatt
Under the I-T Act, using employer’s movable assets by the employee or his family is treated as a taxable perquisite in the hands of employee. The value of the perquisite is calculated at the rate of 10% of the original cost of the asset as reduced by any charges recovered from the employee for such use. Thus, the taxable value of the perquisite, ie 10% per annum of the cost of furniture, would be included in your salary.
I incurred loss on sale of shares purchased eight months back, but I made short-term capital gain on sale of futures and options. Can I set off the short-term capital loss on sale of shares against capital gain arising on sale of the futures and options?
— Mukesh Agarwal
Section 70 of the I-T Act deals with setting off of loss from one source against income from another under the same head of income. There is no curb in case of short-term capital loss being set off against short-term capital gains. The short-term capital loss on sale of shares can be set off from short-term capital gains earned from futures and options.
Is interest from post office savings exempt under Section 10(15) and 80TTA?
— Arjun Ramaswamy
Under section 10(15)(i) interest income of up to R3,500 in the case of an individual account and R7,000 in the case of a joint account from post office savings is exempt from tax. While computing the total income, deduction of up to R10,000 will be available under Section 80TTA. Since the scope of both the provisions are separate and independent, you can claim the benefit of both.
The writer is founder of RSM Astute Consulting Group