My income tax refund cheque for FY2010-11 returned undelivered as I was on holiday with my family. Will I be able to receive my refund now? What is the procedure and how can I receive my refund at the earliest?
— Chetan Joshi
Income tax department has come up with various online services for the convenience of taxpayers. For the refund which is returned, you can now raise a request for re-issue of refund online through income tax portal (www.incometaxindiaefiling.gov.in). Log onto the income tax portal, go to my account section and select refund re-issue request and enter the required details. Alternatively, you can send a letter to CPC along with the details to re-issue your refund.
I have obtained Indian citizenship recently. Will I become a tax resident if I have citizenship of India? If yes, how will my income be taxed in that case?
— Raj Sharma
The income tax law has its own set of provisions for determining the residential status of a person. In India, a person will be treated as a resident on the basis of his number of days of stay in India as mentioned under section 6 of the Income Tax Act. If he satisfies the criteria specified in section 6, he may be a resident/resident but not ordinarily resident/non-resident. Hence, if you have a citizenship of India and have never visited the country or have income which is not earned directly or indirectly from India, you are not liable to pay tax on your income earned outside India.
I am a senior citizen and have worked with three different employers during the year but none of them has deducted tax from my salary. However, I have realised that my income is more than the exemption limit. What should I do? Will I have to pay any penalty on the same? I have not received form 16 from any of the employers.
— Naresh Gupta
Every individual who’s income exceeding basic exemption limit has to file ITR and pay applicable taxes. In the present situation, as your gross total income exceeds the exemption limit, you have to pay tax on the excess amount after deducting the basic exemption amount and deduction under chapter VIA, relief claimed, if any, etc. However, as per Section 207 of the Income Tax Act, you will not be liable to pay advance tax as you do not have any income from business or profession and you are a senior citizen.
I am a 47-year-old salaried employee and fall in the 30% tax bracket. I live in a flat in Thane for which I had availed of tax benefit on a loan of R2.4 lakh. I also own a house in my native place which fetches an annual rent of R45,000. I am looking to take a R25-lakh loan to buy a new house, will I be eligible for income tax rebate on this loan?
— G B Choudhary
Yes, you will be eligible for tax benefits in the form of deduction under section 80C (up to R1.5 lakh) in respect of repayment of principal component assuming housing loan for purchase of new house is availed from any banking or financial institution. Further, you will also be eligible to claim deduction under section 24(b) under the head income from house property for the repayment of interest component of housing loan (the deduction limit is restricted to R2 lakh in case of self-occupied property, however, there is no limit for let-out property). In order to claim the above tax benefit, a certificate needs to be obtained from the loan issuing authority specifying the total amount of payment made during the financial year towards principal amount and interest separately.
I am a broker dealing in various pulses and grains. I have other source of income as well. Last time while filing my tax return for FY14, I forgot to claim TDS amount in my return. However, I wish to claim it in the current year. Can I do so?
— Yogesh Seth
As per Section 139(5), if any person has furnished a return of income on or before the due date and discovers any omission or wrong statement in the return which is filed, then he may furnish a revised return within the one year from the end of relevant assessment year. As you have omitted to claim the amount of TDS, you are eligible to file revised return u/s 139(5) of the I-T Act on or before March 31, 2016 provided the original return for the FY 2013-14 is filed by you on or before the due date July 31, 2014.
The writer is founder, RSM Astute Consulting Group
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