“WHICH ITR FORMS IS TO BE USED FOR FILING INCOME TAX RETURN?”
TAX TALK-31.12.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA
Chartered
Accountant
“WHICH ITR
FORMS IS TO BE USED FOR FILING INCOME TAX RETURN?”
Query 1]
I had deposited Rs.
10,00,000/- in IDBI Bank, Nagpur
1. On Maturity : Rs.
11,35,759 on 02-06-12
2. TDS Refund : Rs.
2,438/- on 25-06-2011
3.
TDS Refund : Rs. 2,678/- on 07-05-2012
Total : Rs. 11,40,875/-
Thus I was paid Rs. 309/-
less. I feel that 15H forms were correctly
submitted and as the tax deducted amounts were not paid to the Government. I
was entitled for full maturity amount. When I visited the bank for inquiry, one
of the officers said that TDS was deducted from Principle amount on 19-04-2011
for the quarter ending 19-04-2011 as 15H was submitted late on 21-04-2011 for
F.Y. 2011-12. As TDS was deducted from Principle Amount, it was reduced to that
extent and hence interest thereon was reduced by Rs. 309/-.
The TDS should have been
deducted from accrued interest and the same amount credited to S.B. A/c on
receipt of 15H form as I was not satisfied by the reply given by Bank officer.
I wrote to H.O on 23.06.2012 but no reply was received. I contacted the Manager
of Local branch on 21.11.2012. Instead of giving credit of Rs. 309/-, he had
shown me how the diff. of Rs. 309/- has arisen The details given by him are
enclosed for your perusal. Kindly throw light on this issue in Tax-Talk at your
earliest. [S.M.Patil, M-2’Sarang’, Tatya Tope Nagar, W.H.C. Road , Nagpur
Opinion:
1. You have timely submitted Form
No. 15H to the bank during the relevant financial year. The bank has wrongly
deducted the amount of Tax (TDS) from your interest accrual.
2. After realizing the mistake,
the bank has courteously returned the same to you by crediting the same to your
saving bank account.
3. It appears that the bank,
instead of returning the amount of TDS to you by crediting your saving bank account,
should have retained the amount and credited it to the FD (or Interest payable)
A/c only. Since, the bank had already repaid the interest (TDS) to you by
crediting to your saving bank A/c, they are probably finding it difficult to
pay the interest on Interest (Since the same has been already paid to you).
4. Had they retained the
amount, you would have got the interest on interest and it would have resulted
in the maturity amount same as documented originally.
5. As far as the amount of Rs.
309/- is concerned, it appears that the loss is there for no fault at your end.
Query 2]
My wife has
received Rs. 1.40 Lacs from her mother-in-law as Gift. My query is, since the
Gift up to Rs. 50,000/- is tax-exempt, whether the amount in excess is taxable
or the aggregate will be taxed? [Vedant-vdpankey@rediffmail.com]
Opinion:
1.
In normal course,
where the aggregate value of gift received from non-relative
exceeds Rs.50,000/-, the entire amount of gift would be taxable (& not
merely an amount in excess of Rs. 50,000/-).
2.
The gift received
by Daughter-in-law from her Mother-in-law is treated as gift from relatives and
accordingly nothing would be taxable in the hand of Daughter-in-law on the amount
so gifted by mother-in-law.
3.
A word of
Caution:
Any income arising from the assets transferred (which includes gift also) to Daughter-in-law without adequate consideration is subjected to clubbing provision and is taxable in the hands of the transferor and not in the hands of transferee. [Section 64(1)(vi) of the Income Tax Act-1961].
Any income arising from the assets transferred (which includes gift also) to Daughter-in-law without adequate consideration is subjected to clubbing provision and is taxable in the hands of the transferor and not in the hands of transferee. [Section 64(1)(vi) of the Income Tax Act-1961].
Query 3]
I would like to know about
the ITR e-filling process for the persons who are paying housing loan
repayment. Which ITR form, they have to use while e-filing their income tax return (either ITR-1 or
ITR-2)? Please advice me. [sharveshjay@yahoo.com]
Opinion:
1.
ITR-1
can be used for return filing if the assessee is having income from salary,
house property & income from other sources.
2.
ITR-1
cannot be used by if assessee has:
a] Income from more than one house property.
b] Income from Lottery or Race course
c] Taxable Capital Gain
d] Agricultural Income exceeding Rs. 5,000/-
e] Income assessable under the head “Income from Business/ profession”
If individual assessee have income of the nature referred in (a) to (e) above, then
i] Return would be required in ITR-2 if there is no income chargeable under the head “Income from Business/ Profession”.
ii] Return would be required to in ITR-4 or ITR-3 if there is income chargeable under the head “Income from Business/ Profession”.
a] Income from more than one house property.
b] Income from Lottery or Race course
c] Taxable Capital Gain
d] Agricultural Income exceeding Rs. 5,000/-
e] Income assessable under the head “Income from Business/ profession”
If individual assessee have income of the nature referred in (a) to (e) above, then
i] Return would be required in ITR-2 if there is no income chargeable under the head “Income from Business/ Profession”.
ii] Return would be required to in ITR-4 or ITR-3 if there is income chargeable under the head “Income from Business/ Profession”.
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