Paid more tax? How to claim a refund

Do you know how your salary income is taxed? How important is your salary structure for minimising the impact of tax?

Do you get any rebate on telephone bills paid by your employer as part of your salary?

How can you file income tax returns without a salary slip?

Your employer has deducted excess tax from your salary. How do you claim a tax refund now?

Under what circumstances can you file your tax returns by July 31 instead of March 31?

For those of you who missed the chat, here is the transcript.

Tejas asked, I have two NSC certificates with face value Rs 10,000 each. They have both matured in 2006. Is the money taxable or taxfree?

Mahesh Padmanabhan answers, The taxability of the matured NSC depends on whether you have declared the proportionate accrued interest throughout the tenure of the NSC or not. If you have already declared the proportionate interest in the past years, then in the current year you would be taxable only on such proportion of interest as may be attributable to the current year else the entire portion of interest would be taxable under the head income from other sources in the current year.

sudhee asked, Mr Mahesh if i am getting a salary of Rs 2.4 lpa and an annual incentive based on my performance of Rs 2.3 lpa(one time payment) what kind of tax do I need to pay and what should I do to avoid the same?

Mahesh Padmanabhan answers, Tax on salary is worked out on entirety basis that includes the regular salary and the incentive. Generally, in working out the payroll taxation, the average rate of tax as may be applicable to the employee is levied on a one-time incentive/bonus payout.

As regards minimising the tax impact a lot depends on your salary structure. Broadly, you could max out your investment limits under sec 80 C, D etc so that the tax impact is minimised.

Tejas asked, My PPF account has matured in 2006 and I have received the money by cheque. Is the money taxable or taxfree?

Mahesh Padmanabhan answers, Currently the maturity proceeds from PPF account is tax-free.

dorothy asked, can I claim my husbands PF as part of my investment as his salary is not taxable?

Mahesh Padmanabhan answers, No you cannot claim the PF contribution made by your husband in your return.

vaibhav asked, Is there any rebate on telephone bills (landline + prepaid + postpaid) for salaried employees?

Mahesh Padmanabhan answers, There is no rebate as such for telephone bills in the taxation of salaried individuals. However, if your salary structure so provides, you can take tax-free reimbursement of such expenses and the employer might need to pay FBT on such reimbursements.

revanth asked, i am working for private optical company as an Optometrist but I am not getting payslip but i have pan card how do i file income tax?

Mahesh Padmanabhan answers, In case your employer has been deducting tax at source from your salary then such employer would be bound to issue a form 16 for such tax deduction which you can use for filing your income tax return. In case no tax is being deducted then you could take a detailed salary certificate from your employer in their letterhead and use the same for filing the return.

Santosh D asked, Dear Mr. Mahesh, Due to uncontrollable circumstances, I could not submit tax declaration & tax got deducted from my salary.Now could you please guide me how can I file returns and what is the correct time for doing so ? can I get my returns if I've got all the necessary supportings. Thanks in advance! Santosh.

Mahesh Padmanabhan answers, Yes you definitely can claim a refund for the excess tax deducted by your employer due to non submission of investment declaration and proof at the time of filing your IT returns. In this regard you would be required to submit the photocopy of all such investments made along with your return. You could file your return immediately on receipt of your form 16 or maximum by July 31, 2007 for the current year.

Ravindran P asked, Hi, I & my wife have taken a housing loan from SBI. The property is in the joint name of us. This year (2006-07)I  have availed the benefit from this loan for income tax purpose. I wanted to check that whether we both can claim this benefit (either partially or 50:50) from next FY or coming years.Pls clarify.Thanks.

Mahesh Padmanabhan answers, you both can individually claim the deduction for the interest and principal repayment provided both are co-applicants to the loan and the property is jointly owned by you.

Manjunath asked, Dear Mr.Mahesh, i stay in a own house.As i have informed my Company that i am staying in a rented premises in order to receive the benefit of HRA? My Company pays me the HRA of Upto Rs 26,000 per annum. How can i claim it? I do not have any savings. Is there any other way to claim HRA? Is it going to effect while filing my returns? If it effects how should i overcome? Should i file my returns as my salary is Rs 135, 000 per annum and i have previously worked for 10 months with a salary of Rs 3000 per month in a Charted Accountant Firm. And I have recently joined an MNC with a salary (CTC) of Rs 135,000 from March 12, 2007.

Mahesh Padmanabhan answers, You would not be elgible to the HRA deduction as you reside in your own accommodation. However, in terms of taxability your salary structure needs to be reviewed to see if due to certain inherent exemption or deduction available therein, whether your taxable salary goes down below the taxable limits.

kranti asked, Hello Sir, For 2006-07 My PRE-EMI interest is Rs 40,180 & Interest is Rs 120,000 then what amt. to be considered for tax exemption? Thanks.

Mahesh Padmanabhan answers, the pre-emi interest has to be equally spread over 5 years and hence the total interest deduction to be taken would be Rs 1.2 lakh plus 1/5th of Rs 40,180 ie. Rs 8,036 hence the total tax deduction would be Rs 128,036.

s1 asked, hi mahesh can i fill up my return thr. income tax website by e-Filling?

Mahesh Padmanabhan answers, e-filing has not yet been working for individuals. But the finance ministry is working towards making this system work and may make e-filing mandatory for individuals soon

san_615 asked, Sir, I have ESOP options from my company listed on the NASDAQ. I don't pay for it,but they are locked in my name by my company. When I sell it, I get the difference amount (sale minus lock-in price). How is this taxed in India? I work in India.

Mahesh Padmanabhan answers, in case the shares have been allotted to you, then based on whether the same has been held for more than 12 months or not. If yes then in your case the same would be taxed at 20 per cent. In case tax has been deducted in US then the double taxation treaty between India and US needs to be seen to decide if a credit for the same can be taken.