I am a salaried person and filed my income-tax return for FY 2010-11 on September 1, 2011. However, I forgot to claim deduction for the health insurance premium I pay. Can I revise my return and claim the deduction now?
? Pramod Sarin
According to the I-T Act, 1961, a return can be revised only if the original return was filed in time, that is, on or before the due date under Section 139(1). The due date of filing return in your case was July 31, 2011. As you filed your return after the due date, you cannot revise it.
My employer has recently changed the salary structure of all employees and has offered us a choice from a set of tax-free allowances. How much medical reimbursement can I get and will it cover medical expenses for my entire family?
? Sanjiv Arora
Medical reimbursement is not taxable up to R15,000 in the hands of the employee, subject to production of evidence of actual spending. The exemption is available for medical expenses of the employee and his/her spouse, children and dependent parents.
I am about to retire from my current organisation after completing 30 years of service and will receive about R5 lakh as leave encashment. I recall reading somewhere that leave encashment is tax-free. Kindly confirm?
? Suraj Bhan
Leave encashment during the continuance of job is fully taxable. Leave encashment received on retirement is exempt under Section 10 (10AA) of the IT Act, to the extent of least of the following:
Earned leave period (maximum 10 months) multiplied by the average salary. Average salary is to be calculated on the basis of the average salary drawn by the employee during the period of 10 months immediately preceding his retirement. Further, earned leave entitlement should not exceed 30 days for each year of actual service rendered for the employer.
It may be noted that in case of government employees, entire leave encashment on retirement is not taxable.
I am a self-employed person residing in a rented property in Mumbai. I pay R12,000 as rent. I do not own any residential property. Can I claim deduction for this rent?
? Manoj Swain
Self-employed individuals can claim deduction on rent paid for residential property under Section 80GG. It is necessary that your spouse, minor child or any HUF, which you might be a part of, don?t own a house in Mumbai (that is, your current place of residence).
The deduction is available for least of the following: First, R2,000 per month; second 25% of the total income or the excess of the actual rent paid over 10% of the total income
The writer is founder of RSM Astute Consulting Group
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