[ashvek3141]

Hi, I am a salaried person & have sold some mutual funds (non ELSS) in the last FY; will I have to file the ITR-2 this time?

[thanixravindran]

Originally Posted by ashvek3141

Hi, I am a salaried person & have sold some mutual funds (non ELSS) in the last FY; will I have to file the ITR-2 this time?

Yes, this is my understanding as ITR2 has provision for STCG and LTCG or loss and carry forward options from any source including MF and equities.

ITR 1 I remember is only for income from salary, one house property and regular income from other sources like Savings interest, deposit interest, dividend, etc, all under 50L.

[JustStarted]

Hi, i am freelancer and file itr-4 every year, this time i am trying to file ITR myself. everything else is clear just one confusion, i bought a land of value more than 50 lakhs, and deposited TDS for same last year

this also shows in my AIS and Form26, both the land and TDS transaction


now do i need to fill this anywhere in ITR-4 form ?


Thanks,

[shipnil]

Originally Posted by JustStarted

now do i need to fill this anywhere in ITR-4 form ?
Thanks,

The ITR should be filled for such transactions when you make capital gains/loss at the time of sell and not purchase. The TDS deposited should reflect in the Form 26 AS of the seller of the land.

Learned CAs might clarify further.

[mtripathi13]

Originally Posted by sups

My question: Is this allowed as per income tax rules? Or shall I have to pay tax on the interest earned as I have transferred the money to her? In case it is allowed, what is the maximum amount I can transfer to her for which I do not have to pay tax on interest earned?

Originally Posted by thanixravindran

AFAIK, it is just treated as gift to relative as spouse comes under relative definition and it is non taxable on receiver. Since the interest earned is less than threshold, it is also non taxable.

Dear Sirs,

Money transferred to wife as gift is not taxable, as 'spouse' is a permitted relative under Income Tax Act. In such cases, gift deeds are advised to be executed and notarized. However, such transfers may open doors to clubbing as transfer of asset to spouse without adequate consideration is covered u/s 64. However, it can be argued that natural love and affection is suitable consideration. So, le me summarize. Gift to spouse is tax free. The income arising from such asset may be subject to clubbing. But it is rarely enforced by the department.

Having said that regular transfers to wife should logically be treated as drawings for household expenses. Any income from saving of such amounts is the income of the spouse and it has been held so in courts. If that amount is below the basic exemption limit, even return filing is not needed, provided the other conditions for non filing is adhered to.

I hope I have been able to address your doubt.

Regards
Manish

[sups]

Originally Posted by mtripathi13

Having said that regular transfers to wife should logically be treated as drawings for household expenses. Any income from saving of such amounts is the income of the spouse and it has been held so in courts. If that amount is below the basic exemption limit, even return filing is not needed, provided the other conditions for non filing is adhered to.

I hope I have been able to address your doubt.

Regards
Manish

Thank you Manish-ji for the clear answer.

End of the day, it seems, it is left to individuals to decide how much one can transfer to home-maker wife as household expenses, I can transfer 10k per month, somebody else can do 70k per month. Wife can spend only a few thousands to show proof of expenses and rest of it will be her savings. The FD interest from the savings done by wife will be subjected to either zero tax or minimum tax as compared to the person who transferred it. One can interpret this as a way to save some tax, particularly when there is no upper limit prescribed as per income tax rules.

[mtripathi13]

Dear members,

The IT department and ICAI are holding TAX CLINIC at 168 places in India simultaneously on 13th and 14th July. Public at large may visit these clinics and clarify their doubts in respect of income tax returns and filing. Members of ICAI will be available during working hours to address the issue of taxpayers.

This is an tax awareness campaign.

In case members can take out time, it will be very useful for them.
For members in eastern Region, I will also be there at EIRC premises at 7Russell street campus.

Regards
Manish

[Dodge_Viper]

Folks, under which ITR, returns need to be filed for contract based employee? My wife had joined back after a long break and the offer was on contract basis for February and March 2023. Since this doesn't come under "income under head of salaries" ITR1 is ruled out I believe. Income tax was deducted. Is there any scope of refund in such cases since the income is still less than taxable limit?

[binand]

Originally Posted by Dodge_Viper

Folks, under which ITR, returns need to be filed for contract based employee?

ITR3 I guess. That's what I filled when I was doing the same a few years back.

Originally Posted by Dodge_Viper

Income tax was deducted. Is there any scope of refund in such cases since the income is still less than taxable limit?

If you have paid more tax than what is due from you, the excess will be refunded so long as you file your return within the stipulated date. Missing the date also means missing your entitlement to refunds.

[dass]

Need help with ITR 2 filing. I have a gratuity payment from my previous Pvt. company. I filled up form 10E and submitted that. However, when I do the verification of ITR2, I get the error message. Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs. 20 lakhs The suggestion from the portal is Enter Rs. 20,00,000 in the field Sec 10(10) - Death-cum-retirement gratuity received. the problem here is that my gratuity payment is significantly lower than what is being suggested by the income tax portal. And if I enter this amount, my taxable amount reduces significantly and there is a substantial refund due to me, which I know is incorrect. How do I proceed from here? I have always filed my returns on my own and this is the first time I am stuck. Talk about simplifying a process by over complicating it.

[thanixravindran]

Originally Posted by dass

Need help with ITR 2 filing. I have a gratuity payment from my previous Pvt. company. I filled up form 10E and submitted that. However, when I do the verification of ITR2, I get the error message. Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs. 20 lakhs The suggestion from the portal is Enter Rs. 20,00,000 in the field Sec 10(10) - Death-cum-retirement gratuity received. the problem here is that my gratuity payment is significantly lower than what is being suggested by the income tax portal. And if I enter this amount, my taxable amount reduces significantly and there is a substantial refund due to me, which I know is incorrect. How do I proceed from here? I have always filed my returns on my own and this is the first time I am stuck. Talk about simplifying a process by over complicating it.

How is the gratuity appearing in Form 16? Is it shown as total income under head salaries along with salary and then treated as exempted under section 10 for calculating net taxable income?

20L is the max exemption for gratuity for private employees for income tax.

[dass]

Originally Posted by thanixravindran

How is the gratuity appearing in Form 16? Is it shown as total income under head salaries along with salary and then treated as exempted under section 10 for calculating net taxable income?

20L is the max exemption for gratuity for private employees for income tax.

Correct, that is how it is showing up on Form 16.

[thanixravindran]

Originally Posted by dass

Correct, that is how it is showing up on Form 16.

So if you follow exactly same as Form 16, is it allowing to enter the gratuity sum in salary breakup details section?

The exemptions are under separate section/parts. Is it not allowing in exemption section to match the sum you quoted in salary break up?

[dass]

Originally Posted by thanixravindran

So if you follow exactly same as Form 16, is it allowing to enter the gratuity sum in salary breakup details section?

The exemptions are under separate section/parts. Is it not allowing in exemption section to match the sum you quoted in salary break up?

It allows me to enter the details as well as completes the validation as successful. However, post this when it goes to verification is when it throws up that error message and the worst part, the error is supposed to be a hyperlink, which will take it back to where it needs me to enter these details and that link does not work.

[thanixravindran]

Originally Posted by dass

It allows me to enter the details as well as completes the validation as successful. However, post this when it goes to verification is when it throws up that error message and the worst part, the error is supposed to be a hyperlink, which will take it back to where it needs me to enter these details and that link does not work.

That's s strange. May be logout and login tomorrow. That's the only thing worked last year