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Old 9th March 2015, 16:48   #556
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Originally Posted by latentpotential View Post
Wonder of wonders, this is a eye opener. But then I also claim the EMI interest as exemption under section 24 I think. So how do I double claim? Wont that be wrong?

Also, what section is this loss parked in? How many years can it be carried forward - if it can be carried forward?

Will this loss be deducted from my net salary income, prior to computation of tax?
OK, this is getting confusing. Please help us with some facts:

- do you have 1 house or 2 houses (i.e. 1 self occupied and 1 on rent)?
- are you staying in your own house or on rent?
- the interest exemption that you have been claiming - is it for the same house which is on rent?
- where is the question of loss getting carried forward?? If the deduction is done in the year's income, where is the concept of carrying forward the loss?

To answer your first question, there is no scope for "double claim" of the same expense under different heads. I don't think that tax authorities are that charitable.
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Old 9th March 2015, 21:08   #557
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by reverse_gear View Post
OK, this is getting confusing. Please help us with some facts:

- do you have 1 house or 2 houses (i.e. 1 self occupied and 1 on rent)?
- are you staying in your own house or on rent?
- the interest exemption that you have been claiming - is it for the same house which is on rent?
- where is the question of loss getting carried forward?? If the deduction is done in the year's income, where is the concept of carrying forward the loss?

To answer your first question, there is no scope for "double claim" of the same expense under different heads. I don't think that tax authorities are that charitable.
1 House but in another state (Loan funded - recently bought). Staying in Mumbai on rent (HRA funded).

I am being advised by a 3rd party that since the rent income is much lower than the emi outflow, it may be treated as a loss making asset. Pls see my earlier remark, thats the best I could explain it. Will try to get a clearer explanation.
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Old 10th March 2015, 02:41   #558
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Default Re: Income Tax savings, Investments and Insurance

Yes.. The same section where you show your housing loan emi requires you to show rental income and property tax paid. Income or loss is then calculated based on those
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Old 10th March 2015, 10:01   #559
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Yes.. The same section where you show your housing loan emi requires you to show rental income and property tax paid. Income or loss is then calculated based on those
+1. @latentpotential, there is only 1 single section under which you can claim interest on home loan as a deduction, after setting off the rental income, net of property taxes paid.

Separately, you can continue to claim the HRA deduction as before.
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Old 15th March 2015, 17:06   #560
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Default Re: Income Tax savings, Investments and Insurance

Searched and got the following link which converts to simple words (using example) the legalese in the PPF rules about maturity, renewal etc.
http://www.simpletaxindia.net/2013/0...-15-years.html

Can now answer my own query posted earlier here :

Quote:
Originally Posted by supremeBaleno
1) My PPF a/c was opened in FY 1999-2000. So, I guess my a/c matures on 31-3-15 / 1-4-15. Is that right ?
Ans : A PPF a/c matures at the end of 15years after the year the a/c was opened. So 15 years from 31-3-2000 means it will mature on 31-3-2015

2) I understand that "If you want to continue this account by depositing yearly subscription, then within one financial year after its maturity, you have to submit Form-H".
So, should I be submitting Form-H between 1-4-15 to 31-3-2016 ? Or should I be submitting it before current FY (2014-15) ends ?
Ans : Form H to be submitted within 1 year from maturity so between 1-4-15 to 31-3-16.
If no renewal request is given, the a/c will by default get renewed for another 5 years, but without the option of subscription. But then it is not possible to convert to subscription mode.

Last edited by supremeBaleno : 15th March 2015 at 17:09.
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Old 31st March 2015, 00:47   #561
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I have been receiving nominal amount from companies whose shares I have purchased.
It is not clear from the bank statement as to what the money is for but I assume it is some dividend that the company is paying.
I assume this is not taxable for me, but still asking for confirmation here.

Anybody?
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Old 31st March 2015, 02:42   #562
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Originally Posted by S_U_N View Post
I
I assume this is not taxable for me, but still asking for confirmation here.
Anybody?
Correct SUN , Dividends from equity shares are not taxable but you have to show them in your IT returns under "exempt income"

Last edited by spookey : 31st March 2015 at 02:55. Reason: addition
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Old 31st March 2015, 16:07   #563
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Default Re: Income Tax savings, Investments and Insurance

Thanks spookey.

New scenario:

I invested Rs. 300000 in a liquid fund over a period of one year (but within the same FY).

During that period and after that, I kept on doing STP to international and domestic equity funds. In total, I took Rs. 200000 out from the liqud fund via STP.


Current market value for the liquid fund stands at Rs. 1,20,280
FundsIndia reports that realized gain is Rs. 9611 and unrealized gain is Rs. 10667.

In 2014, Govt. changed the rules and stated that for debt/ liquid funds, to qualify for LTCG, I have to stay invested for 3 years (instead of 1 year).

How much Income Tax do I have to pay (as part of captial gains)?


In International equity, (treated as debt in India), I have loss of -5873 (realized gain) and -1609 (unrealized gain).

If I try to set of the loss, how much do I have to pay as Income tax?

Last edited by S_U_N : 31st March 2015 at 16:08.
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Old 1st April 2015, 12:18   #564
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Default Re: Income Tax savings, Investments and Insurance

I'm planning to construct a house in around a year time. I can save upto 50K monthly. Which is the best option to put this money, so that i get maximum benefit.

Thanks in advance.

Ramki.
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Old 1st April 2015, 18:39   #565
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Default Re: Income Tax savings, Investments and Insurance

I would like to know if anyone here is aware of the procedure to claim tax credit on foreign income earned in a financial year? I was working in a country which has a double taxation avoidance treaty with India, but TDS has been deducted in India regardless.

Any tips would be helpful.
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Old 1st April 2015, 18:56   #566
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by S_U_N View Post

If I try to set of the loss, how much do I have to pay as Income tax?
SUN,
Only realized gains and losses are considered while calculating Income tax. In your case Realized gain 9611 - Realized Loss 5873 = 3738 is your tax liability.
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Old 1st April 2015, 20:29   #567
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Default Re: Income Tax savings, Investments and Insurance

I had and SIP for a MF through ICICI direct. Recently I went to the MF house and got the funds changed to direct investment mode. In ICICI direct website, the units purchased in the last 12 months have been shown as short term capital gain. Do I have to pay IT for those? I really didn't redeem anything.
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Old 2nd April 2015, 00:58   #568
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With the new rules of entry load, direct probably makes less sense now. Anyway, since it's only a code change basically, I don't think the mutual fund would be sold and re bought. So no, you don't have to pay tax.
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Old 3rd April 2015, 09:45   #569
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by Jaguar View Post
I had and SIP for a MF through ICICI direct. Recently I went to the MF house and got the funds changed to direct investment mode. In ICICI direct website, the units purchased in the last 12 months have been shown as short term capital gain. Do I have to pay IT for those? I really didn't redeem anything.
For all practical purposes "Direct" "Plans" are different from "Regular" ones. So STCG/LTCG(which is incidently 0) will be applicable.

Note that NAVs of direct plan are maintained as if its a different plan in itself. If they are not different then it could be unfair to the investor/ other investors in the schemes. Also question arises as to how many units will you get and at what NAV? So one has to sell existing Regular plan units and buy Direct ones.
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Old 3rd April 2015, 12:12   #570
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Default Re: Income Tax savings, Investments and Insurance

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Originally Posted by Jaguar View Post
In ICICI direct website, the units purchased in the last 12 months have been shown as short term capital gain. Do I have to pay IT for those? I really didn't redeem anything.
You don't need to pay short-term capital gain tax unless and until you sell them within a year.
It just shows as short term capital gains so that you know if you sell now you are liable to pay tax.
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