You have two Form 16s from your previous employers and want to know your tax liability. Or, you have an annual income of more than Rs 10 lakhs and want to know if there will be any surcharge on the tax you will pay.
Alternately, you may want to know if you could still file your tax returns in the post office near your house?
Is it important to file your tax returns if you don't come under the tax net? Would you be liable to pay tax if your son/ daughter is sending you money from abroad and you are investing th same in stock market and mutual funds?
In a chat with readers on July 25, Get Ahead tax expert Mahesh Padmanabhan answered these and many more queries related to filing your tax returns for the year 2006-07?.
For those of you who missed the chat, here is the transcript.
Part I -- Have you filed your tax returns?
satyanarayana asked, I have two Form 16s from different employers and one is with 20 per cent slab and other is 30 per cent slab. My total income from both the companies is Rs 2,70,000. I paid a tax of Rs 33K. Will I get any tax back to me?
Mahesh Padmanabhan answers, The information provided is incomplete and accordingly I would not be able to work out exact tax figures. However, here's what you need to do; include both salaries, work out the tax after allowing the relevant exemptions and then work out the tax. In case the total TDS and advance tax paid is in excess of the total tax liability then you would be eligible for a refund else you would need to make further tax payment.
srinivas asked, My total annual income is Rs 1,05,900, from which Rs 9,360 is being deducted by employer towards PF. Thus my net annual income comes to Rs 96,540. In the month of April '07 I have applied for a PAN card and subsequently I got the same. Please advice, whether I have to file my IT returns as I am not coming under tax net?
Mahesh Padmanabhan answers, You would need to file income tax returns as your gross income exceeds Rs 1 lakh.
ashok asked, Sir if I have an annual income of more than Rs 10 lakhs then what will be its impact on my tax liabilities?
Mahesh Padmanabhan answers, In case of income in excess of Rs 10 lakhs a surcharge would be levied on the tax amount.
vivek asked, Due to unemployment I have not submitted my last two years' return. Now my son who is living abroad sends me money regularly. What should I do because I am investing some money in shares and mutual fund?
Mahesh Padmanabhan answers, The amounts being remitted by your son from abroad is not subject to tax here in India. But in case you invest the same and earn out of such deposits then such income would be liable to tax if the amount exceeds the taxable limits.
ratan asked, Dear Sir, I will be posted outside India and will draw salary in their currency. Will that attract any tax if that money is sent to family members?
Mahesh Padmanabhan answers, In case you become a non-resident Indian then your income earned outside India would not be taxed here in India. Also, the amount earned outside India and thereafter remitted to India is not taxable here in India.
Shankar asked, Sir, can I file my return in post office this year also? Does dividend declared by mutual funds and credited in investor's a/c need to be included in the return as income from other sources?
Mahesh Padmanabhan answers, If my understanding is right, this year post office does not accept income tax returns.
yamuna asked, I have a medical insurance card from Reliance General Insurance Co. Ltd. Can I get a tax benefit for this?
Mahesh Padmanabhan answers, You could claim the benefit for such medical premium paid under section 80D.
sunil asked, Please advise me on the income from equity is called business and at what point, ie, what income level will the income from share trading becomes business?
Mahesh Padmanabhan answers, The circular issued for this purpose specifies that in case a person trades in share without the intention of holding the same for earning dividend and/or capital appreciation, then such income would be treated as business income else the same would be treated as capital gains.
MukeshTrivedi asked, Can we use SARAL form for filing IT returns or we need to use the new form ITR-2?
Mahesh Padmanabhan answers, SARAL is no longer in use and you would have to use one of the ITR formats defined by the tax authorities
latha asked, Hi Mahesh, now I am staying on onsite, I will be back to India next month. Is it possible to file my Form 16 next month? If yes what is the procedure?
Mahesh Padmanabhan answers, Yes you could file your returns even after July 31, 2007. The procedure does not change even after that date.
Mahesh Padmanabhan says, Time to leave folks, would be back later for more info on tax. However, my last take before leaving is that you speak with your tax consultants at the earliest and clear off your tax returns before the due date - Wish you the very best - Mahesh
Part I -- Have you filed your tax returns?
Mahesh Padmanabhan is principal advisor -- direct taxes group, RelaxWithTax Consultants Pvt Ltd, a Mumbai-based personal taxation and finance solutions provider.
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