Que). I am paying rent of just Rs 15,000/- P.m . Till last year , My employer did not ask for PAN copy of landlord, but this year they want PAN card copy of landlord. Please advice is my employer correct in asking for PAN copy.?
Ans: As per Income tax department has issued circular dated 10.10.2013, PAN no is compulsory if Rent during the year exceeds Rs 1,00,000/-.
Download HRA Calculator here
Que). How much can I save through House Rent Allowance (HRA) ?
Ans: House Rent Allowance (HRA) is exempt up to a certain limit if you are actually occupy house for residence.
Que. Can I save income tax by Housing loan?
Ans: When ever you take housing loan. You repay housing loan through monthly EMI. This EMI has got 2 components -Interest and Principal. Both are deductible, but separately.
Maximum Interest that can be claimed as deduction to the tune of maximum of Rs 2,00,000/-, if the property is not let out.
Principal amount repaid can be claimed as deduction under section 80C with overall limit of Rs 1,50,000/-
Capital gain on sale of House
Que: I have sold my Residential House and at profit. Want to know how can I save income tax on such capital gain?
Ans: If the house was held by you for more than 3 years then, on sale of such asset you can get income tax benefit, if you fulfills following conditions:
a) You have either purchased another residential house, one year before the Date of Sale or
b) You plan to purchase another residential house within two years from the date of sale; or
c) You plan to construct another residential house within three years from the date of sale.
In case of (b) or (c), you need to deposit the amount of Capital Gain in a Capital Gain Account Scheme before the due date of filing your income tax return.
Que: I am going to purchase property above Rs 50 lacs, please advice if any TDS is to be deducted? If yes, who can it be deducted?
Ans: Yes, since you are buyer you need to deduct TDS on property if total value exceed Rs 50 lacs. Please note following points:
• TDS is to be deducted by you @ 1% of value.
• Your are not required to have any TAN no
• Only PAN no of your and Seller is to be mentioned filing depositing TDS.
• TDS can be deposited online.
• TDS need to be deducted by you at the time of making the payment to the seller and has to be deposited within a period of 7 days from the end of the month in which the deduction has been made.
• Form 26QB has been prescribed for making such payment and the form for doing the same has been uploaded on the following website of NSDL: https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp
• Issue of TDS Certificate: The TDS Certificate shall be issued in Form 16B within 15 days from the due date of deposit.
• In case the PAN Card No. is not given by the seller, TDS would be required to be deducted @ 20% under 206AA
Tax Saving under Section 80C
Que: What are Tax Saving Instruments available to me under section 80 C?
Ans: Under Section 80C benefits, you can get an exemption of up to Rs 1.50 lakh on contributions to a wide range of investments. These include :
– Employee Provident Fund (EPF),
– Deposits in Public Provident Fund (PPF),
– Sukanya Samriddhi Account for Minor Girl Child
– Investments in National Savings Certificate (NSC),
– 5-year bank fixed deposits,
– Life insurance policy premium (LIC)
(For purpose of investment under section 80C premium paid for dependent or independent , major or minor children are eligible for deduction)
– Investment in equity-linked savings schemes (ELSS), and
– Unit linked insurance plans (Ulips), among others.
– You can also claim a deduction for the school or university tuition fees you pay for your children provided they are enrolled in a full-time course at any institute in India.
Home loan principal repayment also qualifies for deduction under the overall limit of Section 80C.
Investment Bonds/Infrastructure Bonds
Que: You can save tax when you make donations?
Ans: You can claim tax benefits on donations you make. Deduction is available under Section 80G of the I-T Act in respect of donations made by an individual to certain funds and charitable institutionsThe rate of deduction, is either 50 or 100 per cent, depending on the choice of trust. Besides, donations must be made to registered institutions only. Only donations of upto 10 per cent of your total income qualify for such a deduction.
Que. Is Gift received from Relatives Taxable? Also gifts received form other taxable?
Ans:Gifts received from specified relatives are exempt from income tax, and there is no upper limit also.
– Gifts of any amount and from anyone received during your marriage are totally tax-free.
– Similar is the case with the gifts received under a Will or by way of an inheritance,
– From a registered charitable or education organisation or in contemplation of death of the donor.
All other gifts more than Rs. 50,000 are taxable to Income Tax.
Tax Free Incomes
Que. What are the Income sources where in I don’t have to pay income tax?
Ans:There are couple of sources from which you can earn income and dont have to pay tax as well, They are-
– Agricultural Income
– Dividends from equity mutual funds and stocks
– Long-term capital gains on stock transactions are not taxed if you have paid the securities transaction tax on the sale
– Interest earned on PPF
– Amount received on Maturity of LIC Insurance Policy
– Gifts Received from relatives. (See Relatives)