My daughter is studying in the US. I have been sending money for her education directly to the university. Can I claim deduction on it under Section 80C?
?Amol Saxena
Section 80C (xvii) of the Income Tax Act, 1961, provides deduction for tuition fee, provided it is paid to any university, college, school or other education institution situated in India. As you are paying tuition fee to a university located outside India, you won?t be eligible to any deduction under Section 80C.
I have made long-term capital gain from the sale of unlisted shares. I want to invest the entire amount in a residential house to save capital gains tax. As I am living with my parents, I will let out the new house. I don?t own any other house. Can I claim tax exemption even if I let out the property?
?Ravinder Mohan
According to Section 54Fof the IT Act, exemption from long-term capital gains is available if the gains are invested in residential house property. The Section specifies the acquisition of a residential property and does not talk about its utilisation for own purpose.
My father is suffering from chronic renal failure and I have spent about R80,000 till date on his medical treatment this year. Can I claim a deduction for the medical expenditure?
?Muthu Kumar Rao
The expenditure incurred on medical treatment by an individual for himself or a dependent where the tax-payer is a resident in India will qualify under Section 80DDB, provided the disease or ailment is specified in Rule 11DD.
However, the Rule 11DD does not refer to chronic renal failure as a prescribed ailment and, hence, you cannot get the deduction under this Section.
I am a salaried employee and tax is deducted from my salary at source. I also made a short-term capital gain from the sale of shares. Will I need to pay any tax on such gain?
?Vikas Sharma
With respect to short-term capital gain on shares, you will be liable to tax at 15% if the sale of shares is made through a recognised stock exchange and security transaction tax (STT) is paid thereon. In all other cases, the tax will be payable according to the normal slab rate.
For the payment of such tax, you have two options. Option one is where you pay tax on this other income by way of advance tax or self-assessment tax. Or else, you could give particulars of the gain to your employer, who, then, deducts tax at source on your other income as well.
Under Section 192(2B), if an employee has income under other heads, he may furnish particulars of such income to the employer, who shall take it into account while computing the TDS. The particulars of such income are to be furnished in the manner stated in Rule 26B of the IT rules. It may be noted that declaration of other income to the employer is not mandatory.
The writer is founder of RSM Astute Consulting Group
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