Can I report long-term capital loss in the stock market while filing the return and carry the same forward for set-off? For, in case the government introduces long-term gain tax, this loss can be adjusted.
— Raghunath
As currently long-term capital gain from the stock market is tax-free, long-term capital loss from the same source cannot be set-off. Nor can the same be carried forward for set-off in the future.
In the case of my daughter, total taxable income from salary (after applicable deductions) and other incomes like bank and FD interest is less than the basic taxable limit for women. This means that tax payable for FY 2008 – 09 is nil. Therefore, she was not going to file her tax return.
However, TDS has been deducted by the employer from her salary. With this, I reckon she should be entitled for a tax refund. Can this be claimed while filing the tax return? If so, would she be better off actually filing her return, even though her taxable income is nil?
— Mainkar
The answer to your question is in the positive. Your daughter can claim the refund due to her by filing her tax return.
The tax return is mandatorily to be filed if the gross total income of a person, before applying deductions, is more than the basic exemption limit. Therefore, even if the income falls below the basic limit after availing of deductions, nonetheless, a tax return needs to be filed.
I had opened a PPF account on 26.03.1990 and it was to mature on 26.03.2005. I failed to furnish Form-H because of lack of awareness in this regard. However, the bank accepted the subsequent deposit in the 16th year. Later on, the bank, on realising the fact that I could not have deposited the money without furnishing Form-H, refunded the balance due and payable on the date of maturity. Moreover, they refused to pay the interest for almost more than one year for no fault of mine. I came across your article in the Financial Express dated 29.03.2009, wherein you have briefly discussed the issue. I wish to know whether I am entitled to receive the interest for the period between the date of maturity and actual payment made by the bank. In this article, you have stated that such an account shall be treated as without subscription extension. You have also stated that the account extended without subscription shall also earn interest until the entire money in the account is withdrawn.
— Goyal
Form-H is to be used to declare the intention of continuing the account with subscription for each extended period. It should be filed before the first contribution is made for the first extended year in each block. In its absence, the account will be treated as without-subscription extension. Fresh contributions made to such accounts will enjoy neither the deduction u/s 80C nor the interest. [MoF (DEA) 7/21/88-NS-II dt 10.8.90]
If an account holder has failed to file the form, he can approach MoF and hope to get the account regularised.
The authorities state that the account offices should not accept any after-maturity subscriptions without the Form-H. For this purpose, a list of matured accounts should be kept with the counter assistant.
You are not entitled to any interest on the amount contributed in the extended period since form H was not submitted by you. However, the amount held till maturity (prior to extension) will earn interest till the month prior to the date of withdrawal. .
I have just finished my MBA and joined a bank. The bank has provided me with two sets of calculations as far as my compensation goes — one is my CTC (cost to company) and the other is my gross annual income. My query is do we calculate our taxes according to our gross annual income or CTC?
— Amit Paliwal
Tax is calculated as per the provisions of the Income Tax Act, which in turn is applicable to all different types of compensations provided by the employer. Therefore, it is the CTC that would be considered for arriving at the tax payable. However, bear in mind that certain components of CTC would be tax-deferred (eg ESOPs are taxable upon exercise though calculated as part of the CTC every year) and certain others could be partially taxable (eg LTA is taxable twice in a block of four years).
The authors may be contacted at wonderlandconsultants@yahoo.com