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Old 6th July 2017, 18:42   #1171
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File your return showing it as a capital receipt and see if it is passed - if the amount is large as tax has been deducted at source and refund claimed there will be a scrutiny. It is then that your stating of this precedent will come in - hire a good CA and use him to file and to handle any objection
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Old 8th July 2017, 16:39   #1172
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Originally Posted by smnrock View Post
I've a query about the severance payment. My employer winded up their Indian operation and paid the severance pay by deducting tax to all employees. First 5 lakhs is exempted, remaining amount are taxed. But there are cases where severance pay is considered as capital receipt and not income receipt, hence its non taxable (Sharda Sinha case).

Anyone has experience in this? Is it possible to claim refund for the taxes paid?
The IT Act was ammended from AY 2002-03 and specifically the Salary definition includes "any amount due to or received, whether in lump sum or otherwise, by a tax-payer from any person after the cessation of his employment with that person". Hence your sevrance pay is taxable as salary. The Sharda Sinha case was prior to AY 2002-03 although the final judgement came later.
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Old 8th July 2017, 16:58   #1173
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See http://www.marketexpress.in/2016/11/...-payments.html on the taxability of severance payouts.

Last edited by sdp1975 : 8th July 2017 at 17:18.
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Old 8th July 2017, 18:10   #1174
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I was filling my family members' this year's returns and I had a query- if my MIL has a short term capital gain from debt mf which when totalled with interest income falls below the taxable limit. But there are carried forward STCL. Hence the IT app is compulsorily reducing the carried forward capital loss with the current year's STCG and further reducing her income. Is there a way to not knock off Current year's STCG from carried forward losses? IT return gurus need your help understanding this issue
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Old 9th July 2017, 06:41   #1175
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Another question, this time on appellate procedure. I find in some places and in that part of the Act that I am able to find, that to file an appeal to the CIT(Appeals), tax liability that is admitted has to first be paid. Liability as per the return filed, therefore, where one has been filed.

So what happens to the demand raised by the ITO where the returned income that is filed has been increased and demand raised for the consequential additional tax payable? In other places I read that this has to be paid to the extent of 15%, or 7.5% - this contradicts the first para above. Or to be paid in full?

What am I missing?
PS: I think I figured it out. One can legitimately be in appeal but one still has to go through a different process with respect to payment of the demand for which one is in appeal. Strange, but true.

Last edited by Sawyer : 9th July 2017 at 07:06.
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Old 11th July 2017, 21:05   #1176
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

I have four queries -

1. I want to understand how we manage stock market investments and IT returns.
From last 2-3 months I am into stock markets and currently have only invested in the market and not booked any profit from it.
I have filed my returns without any mention of my stock market investments for this year since I have not earned anything yet from selling any stocks.
How should I take stock market profit if any for next year in IT returns?

2. Do IT people have issues if I keep on doing yearly FD of a sum of amount every year from my past savings?

3. Will the money credited into our account by a friend as part of an expense that I did on like on a trip or on a dinner and my friend later transfer his share to my account, will this money be counted for tax purpose?

4. My cousin who has recently joined IT industry doesn't comes in tax bracket after consuming 80c deductions. She has some savings from college pocket money and some amount deposited by my parents on festivals and occasions in saving account. Now upon filing IT returns, she is eligible for TDS refund from her deposits. Will IT people have any issue in refunding TDS but the person still not eligible to pay taxes after maxing out 80c deductions.

Last edited by bluevolt : 11th July 2017 at 21:10.
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Old 12th July 2017, 06:31   #1177
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Quote:
Originally Posted by bluevolt View Post
I have four queries -

1. I want to understand how we manage stock market investments and IT returns.
From last 2-3 months I am into stock markets and currently have only invested in the market and not booked any profit from it.
I have filed my returns without any mention of my stock market investments for this year since I have not earned anything yet from selling any stocks.
How should I take stock market profit if any for next year in IT returns?
I have the same question but for this year. I have some short term capital gains and long term capital gains from equity and want to know which ITR form to use - is that ITR2 or can I get by using ITR1. Also, when I go to incometaxIndiafiling.com, I only see an option to file ITR1 or 4, not 2. Hence even if I should use ITR2, how to do it online?
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Old 12th July 2017, 07:22   #1178
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by deep_bang View Post
I have the same question but for this year. I have some short term capital gains and long term capital gains from equity and want to know which ITR form to use - is that ITR2 or can I get by using ITR1. Also, when I go to incometaxIndiafiling.com, I only see an option to file ITR1 or 4, not 2. Hence even if I should use ITR2, how to do it online?
Download the java or excel utilities for ITR2 and submit through that.
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Old 12th July 2017, 11:09   #1179
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Originally Posted by deep_bang View Post
Hence even if I should use ITR2, how to do it online?

If you are ok with using third party portals, you can consider that. I have used cleartax for last couple of years.
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Old 12th July 2017, 11:31   #1180
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Originally Posted by bluevolt View Post
I have four queries -
===========
.

1. You are investing in shares and not trading full time, therefore any income earned if you sell your investments will be charged under capital gains.

Assuming that you have paid securities transaction tax on your purchases and sales and your period of holding is less than 12 months, then any profit earned from selling the stocks will be taxed at 15% as Short Term cap gains (STCG)
If your period of holding is more than 1 year then your gains will be exempt.

2. Your interest from FD will attract TDS at 10% and you need to show this income under the head Income from other sources and set it off against your TDS already deducted or pay the excess tax if your total income falls under a higher slab rate.

3. If the total money deposited by your friend exceeds Rs. 50,000 then it may be included under Income from other sources as gift upon scrutiny by an Assesing Officer and charged to tax.

4. If tax has been deducted at source on those deposits and reflecting in your cousin's Form AS 26 and your cousins net income (after including that income from deposits and subtracting 80c deductions) is below the minimum income chargeable to tax, then yes, she is eligible for refund.

Hope this helps.

Last edited by khan_sultan : 13th July 2017 at 13:19. Reason: Trimmed quoted post for better readability
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Old 12th July 2017, 11:31   #1181
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Originally Posted by SilentEngine View Post
If you are ok with using third party portals, you can consider that. I have used cleartax for last couple of years.
I found income tax Java app or excel file much better than the third party app.I had been filing using cleartax for last 3 years and this year I tried Java app and was pleasantly surprised at how easy it is to enter data and upload on to the income tax website. It covers all the day to day scenarios one may face and has no bugs. Bugs have been reported in some company specific transactions (NOT ITR2) handling depreciation. As cleartax or any other portal also passes the data through the same app if there is a bug it will be reflected whether you use IT app or third party app.
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Old 12th July 2017, 12:46   #1182
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Originally Posted by DieselFan View Post
I found income tax Java app or excel file much better than the third party app.

I used cleartax as the last option. I wasn't able to use the java utility last year (some compatibility issues with java runtime on the Mac). Don't remember if I tried excel file option.

Ideally it would be better if ITR 2 online option is made available on the official website itself.
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Old 12th July 2017, 13:00   #1183
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Guys one question. Made a minor mistake while filling in my returns this year. In the employer category, selected PSU as the option instead of others (I work for a private firm). Verified the return also without noticing this and its after the verification that I noticed this mistake. Just wanted to know if it makes sense to go through the trouble of filing a revised return just to correct this or let it be and revise if at all a notice comes up?
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Old 12th July 2017, 23:03   #1184
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Sherlocked View Post
If your period of holding is more than 1 year then your gains will be exempt.
.
So if I hold my current stock market investments for more than 1 year, then I would not require to pay any tax on the profits that I might be getting that time?
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Old 13th July 2017, 09:04   #1185
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Made a minor mistake while filling in my returns this year. In the employer category, selected PSU as the option instead of others
Technically you should update. I don't think IT guys will reject/reverse your return for this one error. However I would suggest you to revise your returns, which should be really quick. You just need three changes 1. PSU to others, 2. Revised return instead of original and 3. Date of submission.


Quote:
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So if I hold my current stock market investments for more than 1 year, then I would not require to pay any tax on the profits that I might be getting that time?
YES. However you have declare the profit amount in your next year income tax return under exempted category (Long Term Capital Gains).

Last edited by hillsnrains : 13th July 2017 at 09:11.
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