I am working with a private limited company. My employer declared a bonus of R10,000 for all employees on Christmas. What will be the taxability of such bonus in my hands?
?Apruv Gupta
As per the provision of the Income Tax Act, 1961, the amount of compensation due or received by an employee from his employer in connection with an employment shall be taxable as salary in the hands of the employee. Accordingly, the bonus receivable by you shall be taxable in your hands as salary income.
I was advised to invest in IDFC infra bond to get an additional investment benefit apart from the normal investment. Could you provide more information on the tax benefit and relevant aspects of investing in infra bonds?
? Vikram Sharma
As per the provisions of the Income Tax Act, under Section 80CCF, the maximum deduction that can be available is R20,000 per annum. This deduction is in addition to the existing limit of eligible deduction of R1 lakh under Sections 80C and 80CCD (normal investment). The minimum lock-in period for such investment is five years and the minimum investment in such bond is R10,000. Currently, the rate of interest on such bonds is 9%.
I am thinking of gifting a car to my close friend on his marriage. Is such a gift taxable in his hands?
? Deepak Sood
As per the provisions of the Income Tax Act, any property, other than immovable property received without consideration shall be taxable in the hands of the recipient if the aggregate fair market value of such property exceeds R50,000. However, as provided in Section 56(2)(vii), specific exemption is provided in certain cases, including where the property is received by an individual on his marriage. As such, there shall be no tax implication under the Income Tax Act on the gift of a car in his hands.
I am planning to sell a commercial shop. I also own a couple of residential houses. Please let me know if I can claim any tax exemption under the I-T Act if I invest the sale proceeds in a residential property?
? PMS Rao
As you currently own two residential flats, you cannot avail of the re-investment benefit under Section 54F. This section provides for an exemption from capital gains tax on the investment of the sale proceeds in a residential property on the disposal of a long-term capital asset (other than residential property). The other alternative to claim exemption from capital gains tax is under Section 54EC, wherein you will be required to invest in certain bonds (such as bonds issued by NHAI or REC). The exemption under this Section is subject to certain conditions and the maximum permissible investment in such bonds is R50 lakh per financial year.
n The writer is founder of RSM Astute Consulting Group
n Send your queries at fepersonalfinance@expressindia.com