[sgiitk]

There were some riders like no-refund etc. for e-verification. What is the exact status? Also, bank account based e-verify for her may not be available with the bank link since she is on StanChart. Of course I can ask her to file and verify using her Yes bank account in Gurgaon or ICICI Bank account in Manipal.

[pgginish]

My previous employer has taxed me for leave encashment and mentioned that in form 16 as taxable salary. I read somewhere that leave encashment on resignation is not taxable.

Can I file return for that amount? Can somebody confirm?

[hserus]

(i) Leave Encashment during service is fully taxable in all cases, relief u/s 89(1) if applicable may be claimed for the same.
(ii) Any payment by way of leave encashment received by Central & State Govt. employees at the time of retirement in respect of the period of earned leave at credit is fully exempt.

a) Govt. Employees : wholly exempt.
b) Non-government Employees : Exemption is available in respect of the least of the following :
- Cash equivalent of the leave salary in respect of the period of earned leave to the credit of the employee at the time of retirement but not exceeding 30 days for each year of actual service and also not exceeding for a period of ten months;
- The Amount calculated on the basis of 10 months average salary immediately preceding his retirement;
- Rs. 3,00,000 if date of retirement is on or after 1.4.98;
- Leave encashment actually received.

[psvinay]

For the past several years "myitreturn.com" has been my favorite e-filing site. Quite simple and user friendly site. However their helpdesk is horrible. Zero support from them. For the past 15 days, I am waiting for an answer for a query raised through their helpdesk. Since they have no intention of helping me, I hope one of the tax-gurus of our forum can help me. So here it goes..

Here is the long term capital gain calculation done by MyItReturn.com. I can't make out how they calculated the last column (Capital Gain). Either my understanding is wrong, or their system is wrong. My understanding is, capital gain (equity) is Sell Value - Buy Value - Expenses. However, this formula does not produce the result they have shown in the below table. What am I missing here? Please help..

[hserus]

These are short term capital gains on shares. See http://www.charteredclub.com/tax-on-...-mutual-funds/

[psvinay]

Originally Posted by hserus

These are short term capital gains on shares. See http://www.charteredclub.com/tax-on-...-mutual-funds/

Thanks for your quick response. These are long term capital gains on shares. All of them were held for more than 12 months. The tax calculated is zero. I have no issues with the tax calculated by the site. My doubt is on the detail table they had worked out (it was attached in my earlier post). For example, please consider the following input:

Sale Date 08-Oct-14, Sale Value Rs.19670, Selling expense Rs 169.
Buy Date 21-Jun-13, Buy cost Rs. 9800. STT was paid for Buy & Sell time.

Now what is the capital gain on this Sell? Shouldn't it be 19670 - 9800 - 169 = 9701. Instead of Rs.9701, the working of MyItReturns.com shows Rs.8813.. I don't get their logic here.. Am I missing any thing here??

[anku94]

Hi, can someone explain to me the term "Dependent Parents" under the IT act?

More precisely, can I get away with describing my parents as dependents for the purposes of LTA, if they're both tax-paying salary earners?

[binand]

Originally Posted by anku94

More precisely, can I get away with describing my parents as dependents for the purposes of LTA, if they're both tax-paying salary earners?

No. If they have salary/pension/rental/investment etc. income they are not "wholly or mainly dependent" on you as required by the IT Act (unless such income is really measly).

[scuderiamania]

Originally Posted by psvinay

Thanks for your quick response. These are long term capital gains on shares. All of them were held for more than 12 months. The tax calculated is zero. I have no issues with the tax calculated by the site. My doubt is on the detail table they had worked out (it was attached in my earlier post). For example, please consider the following input:

Sale Date 08-Oct-14, Sale Value Rs.19670, Selling expense Rs 169.
Buy Date 21-Jun-13, Buy cost Rs. 9800. STT was paid for Buy & Sell time.

Now what is the capital gain on this Sell? Shouldn't it be 19670 - 9800 - 169 = 9701. Instead of Rs.9701, the working of MyItReturns.com shows Rs.8813.. I don't get their logic here.. Am I missing any thing here??

Since your capital gains are long term in nature, you were given the benefit of cost inflation index. Basically your cost of acquisition has been increased to adjust it for inflation.

Just google 'cost inflation index'. You will find a number against each assessment year. Simply multiply your cost with current assessment years indexand then divide of the ay in which you purchased your investment.

Hope I could help.

[psvinay]

Originally Posted by scuderiamania

Since your capital gains are long term in nature, you were given the benefit of cost inflation index. Basically your cost of acquisition has been increased to adjust it for inflation.

Just google 'cost inflation index'. You will find a number against each assessment year. Simply multiply your cost with current assessment years indexand then divide of the ay in which you purchased your investment.

Hope I could help.

Thank you. I think this explains the difference. I have validated this and found to be correct.

[S_U_N]

ET is carrying an article on the new rules for filing returns
http://economictimes.indiatimes.com/...w/48121973.cms

Earlier, I used to submit ITR 2.

Now, it seems I have to submit ITR 1. I have interest from
1. banks, FD and debt funds (taxable) and
2. PPF, equity MF (>1 year), some infra bonds (non-taxable).

[NPV]

Originally Posted by S_U_N

Now, it seems I have to submit ITR 1. I have interest from
1. banks, FD and debt funds (taxable) and
2. PPF, equity MF (>1 year), some infra bonds (non-taxable).

I was told by the CA folks who help file returns at office:
this year they require Aadhaar Number, Passport Number and all bank account numbers with IFSC code as well.

[binand]

Originally Posted by NPV

this year they require Aadhaar Number, Passport Number and all bank account numbers with IFSC code as well.

Requiring Aadhar would be in violation of the Supreme Court's order and hence contempt of court. It is only optional. Passport, too.

[drsingh]

http://m.businesstoday.in/story/inco.../1/221848.html


The long term strategy seems to be to link all financial transactions /accounts to aadhar /PAN and make life easier for the understaffed IRS.

Tax terrorism is here to stay.

[sdp1975]

How long does it usually take for the ITR-V to reach the CPC ? I posted my ITR-V over 2 weeks ago , from Bangalore by ordinary post, and yet no acknowledgement or SMS .

I would've expected at most a week but I'm still waiting for the ack.