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Your Income Tax and Tax Saving Investment Related Questions Answered

Hi all,

It was a pleasure to talk to you on my Facebook page yesterday, and answer your income tax and tax saving investment related questions.

I am glad that I could be of help, and we would definitely have more such sessions before the end of the investment season.

 

A background about the live chat session

I conducted a session on 11th March where I answered the income tax and investment related queries for my readers through chat. This was done on the Facebook page for this site.

This was first such session by me, and it was a great success – lots of people could benefit from instant and free advice. I plan to conduct more such sessions before the end of March.

This was an exclusive event for my email newsletter subscribers, and the date and time for the next events would also be circulated only to my subscribers – these would not be published on this site.

So if you want to take advantage of the next chat session, please subscribe to my newsletter so that you know exactly when it is happening. As a bonus, you would get a comprehensive 4-week email course on “Basics of Personal Finance”.

 

The topics covered / questions asked

Here are the questions that were asked during the chat session – you might have similar questions, so do go through these!

 

Santosh Balakrishnan

Hi Raag, what do you think is going to come of the Income Tax thingy, this coming budget?

 

Surekha Verma

Hi Raag,
My husband (32 years) take home salary is 18 Lacs pa and I (27years) am a housewife and no income source. Need your sugession.
1. My husband wants invest in FDs@10% pa in my name (Funding from his account), where he wants to show this as a loan to me at 3% pa. He wants to keep a loan deed so that it he can show loan interest as income only and rest FD returns can be benifited.. What is your advice..??? Should we go ahead like this..??

2. Also my husband wants to buy a house and thinking to buy in my name.. What will be the better way to execute to save more tax and other benifit.. Please advice..

Thanks in advance.

 

Debasish Deb

Hi Raag, I am 30 years old and regularly invest thorough MF SIPs. What would be the right proportion of equity and debt in my portfolio ? I would like to invest for long term and also protect capital in short term. Thanks.

 

Sachin Rathod

Hi Raag, This is Sachin here. I am free from income tax from my office so an income tax return is applicable for me or not?? And what is actually an income tax return? Thanks in advance..

 

Manish P Motwani

Q1: If I have the receipts of all the four years(2005-2009) of my Engg course, can I deduct that amount from my dads income as “tuition fee of children” in this financial year(2011-2012)?

Q2: Can one claim for tax rebate, the tuition fees paid to ICAI council for CA-CPT (and further exams till Final CA), for his brother or Son?

 

Shiv Mehta

Hi Sir,

I wanted to know what are the tax savings instruments now that the Direct Tax code has come into existence from next PY??

Also, I have a LIC endownment policy which is 2 years old. I wanted to know if I can withdraw the cash value (obviously with some charge) and surrender the policy? And then I wanted to buy a Term Insurance.

 

Swetha Reddy

Dear sir , plz explain me about the section 80 c . my doubt is asper this section Rs 1 lac is exmpted means if i invest ppf or elss or any other tax saving scheme .All schemes together 1 lac or each scheme 1 lac exmption

 

CA Bipin Srivastava

I would like to make investment in bonds. Can you please suggest me which bonds I can purchase so that it gives me benefit for investment aspects as well as tax aspects

 

Pramode Mishra

I have retired in December 2011 at the age of 58 years from Maharashtra and I have no monthly pension. I want to invest my Provident fund money approx Rs. 40 lakhs in such a way that I may receive monthly income without paying any income tax. Please advice.
Thanking you

 

KS Balaji

I started trading in equities-cash from Sep’11 onwards, I have not paid any capital gains tax so far, what is the procedure for filing the returns and pay taxes, should I pay the tax before March or can I pay it next financial year also ? I do about 90% intraday and balance is on delivery for short term.

 

Suchitra Naidu

Hi, am interested in investing in shares for short term but not sure how to go about it. Please guide.

 

Venugopal Krishnarao

How to calculate capital gains tax on open offer:
Company name : sabero organics.
Original Purchase date : 31-10-08
Purchase price :11.30 per share (STT paid)

No of shares accepted by Company on open offer :377
Open offer price : Rs.160/- per share
Shares transferred to company (Off market, no stt paid) on 05-12-11
Cheque deposited in HDFC bank :Rs. 60,320 (for 377 shares) ,Date credited : 16-12-11

1) How to calculate capital gains tax for the open offer?
2) Where to show in ITR-2 form the above capital gains?
3) Is it LTCG or STCG

 

Parthasarathy Gopalathatham

Assessment year 2012-2013
Age: 61 years
Interest from FD 44594
Annuity pension 62169
Total income 106763
Mediclaim (80D) 11224
80C 90000
Total Exemption 101224
Nett Income 5539
Basic Exemption 250000
Un absorbed basic exemption 244461
Capital gains
Land purchased on 27/3/2002 120350
Indexed rate(120350*785/426) 221772
Land sold on 28/04/2011 1680000
Long term Capital gain(168000-221772) 1458228
Flat purchased on 18/08/2011 1400760

1.Kindly let me have my tax status?
2.What is meant by proportionate capital gain?
3.Have to buy a house above the sold rate to avoid capital gain.
4.Buying a house @ of the LTCG is not enough to avoid the capital gain.

 

Bharat Patel

hi
I am nri and I want to apply tax return
I can fill up e-file but I want to get some information about nri has different forma and process to apply , I can apply from Australia and send CPT by post

 

Punit Shukla

Why ULIP is not suitable for short term?

 

Conclusion

Interesting, right? We did cover a lot of topics! To check out the answers, please visit the Facebook page for this site.

And if you want to take advantage of the next chat session, please subscribe to my newsletter if you have not already done so – you would know exactly when the next session is happening.

Happy tax saving!

 

PS: You can also have a look at the “Income Tax Formula” for comprehensive yet easy to understand information on all tax saving avenues.

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