[goandude]

Originally Posted by hrman

This notice is valid. My sister got a notice from IT in 2008 for a similar scrutiny where her CC had a spending of more than 2 lakhs. Please get help from a CA and immediately draft a reply to this notice. If you do not reply, they will send further reminders and it could get serious. I recall my sister had to get all bank statements, details of anything purchased with the money/ credit card during that year. Your CA should be able to guide you.
From a future perspective, please ask your company to issue a corporate credit card and use the same for official use, so that you are not pulled up.
.

Thanks, I went myself and it was not a very unpleasant experience. However like you said the ITO went into complete details of income and expenditure. Eventually, he caught me out in the interest in savings account and sweep account amounting to 8k which I hadn't shown in itr. In that year the bank didn't cut TDS on sweep account like it does nowadays. Lets see how it goes now.

[Sommos]

Originally Posted by bblost

My wife and I have a home loan on the house we live in.

I pay 100% of the EMI's and claim tax benefits.

My wife owns another flat in her own name. This flat does not have any loan on it.

Does it make more sense to live in that(fully owned) flat while l claim tax benefits with the unlimited interest write off?
Is it legal?

What if both the flats are occupied by us and/or parents?
i.e. there is no rental income on either of them.

Please advice.

I will try to answer your question :
a. On the self-occupied house your interest rebate will be restricted to 1.5L per annum.

b. In case you shift to the flat and give this house on rent, you can claim the full amount of interest as rebate even if the amount is more than 1.5L.

c. An individual can claim one house property as self occupied. This is applicable even if the individual is living in a seperate city due to his occupation or service. In your case you can claim one property as self occupied and your wife can claim the flat as self occupied.

However, if both the property is claimed as self occupied, then your interest rebate will be restricted to 1.5L only.

Hope this would help in your tax planning.

[bnzjon]

Originally Posted by Sommos

I will try to answer your question :
a. On the self-occupied house your interest rebate will be restricted to 1.5L per annum.

b. In case you shift to the flat and give this house on rent, you can claim the full amount of interest as rebate even if the amount is more than 1.5L.

c. An individual can claim one house property as self occupied. This is applicable even if the individual is living in a seperate city due to his occupation or service. In your case you can claim one property as self occupied and your wife can claim the flat as self occupied.

However, if both the property is claimed as self occupied, then your interest rebate will be restricted to 1.5L only.

Hope this would help in your tax planning.

Does the same rule of full amount of interest as rebate on second property apply if the loan on the first property is fully paid (no dues) and a fresh loan starts on the second property (second loan is taken after closure of first loan) ?

[mjothi]

Originally Posted by bnzjon

Does the same rule of full amount of interest as rebate on second property apply if the loan on the first property is fully paid (no dues) and a fresh loan starts on the second property (second loan is taken after closure of first loan) ?

I think yes. The rebate is at a given point of time - so if you have a existing loan (may be 2nd or 3rd property) you can still get interest rebate.

[bnzjon]

Originally Posted by mjothi

I think yes. The rebate is at a given point of time - so if you have a existing loan (may be 2nd or 3rd property) you can still get interest rebate.

Thanks buddy.
My question is - is this applicable if I have only one loan at the time of claiming 100 pct rebate on interest portion ? (Previous loan is fully paid a year back).

[Sommos]

Originally Posted by bnzjon

Does the same rule of full amount of interest as rebate on second property apply if the loan on the first property is fully paid (no dues) and a fresh loan starts on the second property (second loan is taken after closure of first loan) ?

Originally Posted by bnzjon

Thanks buddy.
My question is - is this applicable if I have only one loan at the time of claiming 100 pct rebate on interest portion ? (Previous loan is fully paid a year back).

It is irrespective of the no. of loans, but depends on the no. of house property.

The full amount of interest is allowed as rebate only if the second HP is let out. The moment you show the second HP as self occupied, the interest rebate is restricted to 1.5L.

[bnzjon]

Originally Posted by Sommos

It is irrespective of the no. of loans, but depends on the no. of house property.

The full amount of interest is allowed as rebate only if the second HP is let out. The moment you show the second HP as self occupied, the interest rebate is restricted to 1.5L.

Thanks Sommos.
How is the tax treatment during the construction period of second property (yet to let out) ? Can I get a 100 pct rebate on the interest portion ?

[Sommos]

Originally Posted by bnzjon

Thanks Sommos.
How is the tax treatment during the construction period of second property (yet to let out) ? Can I get a 100 pct rebate on the interest portion ?

During the construction period you are not eligible for any deduction.
Deduction can be claimed only after you obtain the completion certificate from the Municipality etc., as the case may be. Pre-construction period interest is to be claimed along with your normal interest in the first five years.

Note - the construction has to be completed with three years from the AY in which the loan is granted.

[bnzjon]

Has anyone received acknowledgement for ITR V send to CPC Bangalore ?

Last year I received the same in a weeks time after posting the ITRV to CPC Bangalore. This year I filed e-return on 30/Jul and sent the forms to CPC the same day. Yet to receive the acknowledgement.

[nareshov]

Originally Posted by bnzjon

Has anyone received acknowledgement for ITR V send to CPC Bangalore ?
...

I received my receipt on 17th.

[null]

Originally Posted by bnzjon

Has anyone received acknowledgement for ITR V send to CPC Bangalore ?...Yet to receive the acknowledgement.

There was a flood of online ITR submissions this year, especially towards the end of July. Anyways, I guess the turnaround time is 120 days(which is for the submission alone) and hence you can expect it anytime in next 3-4 months (worst case).

BTW, that reminds me, I have not posted the ITRV yet to CPC. I should aim to do it tomorrow :P

[bnzjon]

Originally Posted by nareshov

I received my receipt on 17th.

Thanks.
May i know when was the return filed ?

[nareshov]

Originally Posted by bnzjon

Thanks.
May i know when was the return filed ?

Returns was filed on 28 Jul.

[S_U_N]

Received a letter from IT department.

I am unable to understand what it means though.

Any clue?

[Warwithwheels]

Originally Posted by S_U_N

Received a letter from IT department.
Attachment 1128590
I am unable to understand what it means though.

Any clue?

Lemme try to decode!

As per the IT Records, you have claimed a refund while filing the returns for the AY 2009 - 10.

As per the IT Records, you also have a tax demand in arrears for the periods prior to AY 2009 - 10.

The letter says that, your refund has been adjusted against the earlier year tax arrears.

Solution:

Option 1: If you are salaried and the amount is not significant, just ignore it.

Option 2: If you are a professional or business man and the amount is material, seek professional help!

Have they attached the computation sheet along with the letter, describing the adjustment mechanism?