For FY 07-08, I have filed my tax returns electronically. However, I did not have a digital signature and hence had to subsequently submit ITR-V. However, for some reason I failed to do so. What is the remedy now? Will my electronically filed return be accepted as valid?
?P Vijnan
Rule 12(3)(iii) of the Income-tax Rules, 1962 provides that where a return of income or return of fringe benefits in Form ITR-1 to ITR-8 is furnished by transmitting the data of the return electronically (without digital signature), it has to be verified in Form ITR-V. This is akin to signing your return. Not submitted ITR-V is similar to submitting the tax return without signature. And a tax return without signature is not a valid tax return.
It may be possible that the department overlooks this and your assessment goes through. However, if you do not wish to take any chances, it would be advisable to file your tax return again in the physical form. You may file your return without any penalty for AY08-09 till March 31, 2009. However, if any tax was payable, interest will be applicable till the date of filing the physical tax return.
I have four questions regarding Sec. 54EC bonds ?
(1) Whether capital gains from commercial property purchased by my parents and inherited by us after their death in 2001 would qualify for capital gain exemption under Section 54EC by investing in bonds.
(2) Which are the bonds that qualify for exemption for sale of commercial property?
(3) From where can I get these bonds at 20% discount upfront?
(4) Since the property is held jointly between me and my brother, will the proceeds divided equally between us and invested individually in the bonds also qualify for exemption?
?Dinesh Jangla
1. Yes, it will. The investment has to be made within six months of earning the capital gain.
2. There are only two types of bonds that are available which qualify for any kind of taxable long-term capital gain. These bonds are issued currently by NHAI and REC.
3. There is no 20% discount upfront. You get a tax break on capital gains by investing in these bonds and since the tax rate is 20%, 20% is what you effectively save by investing in the bonds.
4. Yes, that is correct. Since the property is jointly owned, any income from the property will also be taxed jointly. So your brother and you must individually invest in the bonds to avail exemption on your individual share of capital gains.
Is short-term capital loss (STCL) incurred in respect of equity & equity mutual fund units transactions where STT is paid, be set off against long term capital gain of debt mutual fund units/ gold exchange traded fund units in same financial year? If the above mentioned STCL is carried forward in future (maximum for eight years?) then can it be set off only against short-term capital gain (STCG) incurred in those years in respect of equity shares/equity mutual fund units (wherein STT is paid), and also against long-term capital gain (LTCG) in respect of debt mutual fund units / Gold ETF units?
?V.M.Shidhaye
You may set-off short-term capital loss against taxable long-term capital gain or short-term capital gain.
Therefore, STCL incurred in respect of equity & equity mutual fund units transactions where STT is paid, can be set off against long term capital gain of debt mutual fund units/ gold exchange traded fund units in same financial year. If above mentioned STCL is carried forward in future (maximum for eight years) then it can be set off against either short-term capital gain (STCG) incurred in those years in respect of equity shares/equity mutual fund units (wherein STT is paid), and also against long-term capital gain (LTCG) in respect of debt mutual fund units / Gold ETF units.
My bank has deducted TDS @ 10% on interest exceeding Rs 10,000 on GOI Saving (taxable) Bonds from investors who have not submitted TDS exemption forms 15G or 15H this year, against 20% deducted last year. Other banks are deducting TDS @ 10% right from the date when TDS provisions were made applicable. Can you please clarify the correct position in this regard?
?Sharad Hatekar
Notification F4 (10)-W&M/2003 dated 13.1.04 stated that TDS is not applicable on interest. This has been negated by Notification F4(10)-W&M/2003 dated 31.5.07. Accordingly w.e.f. 1.6.07, TDS is applicable @ 10.3% if the interest paid or payable (on cumulative deposits) is Rs 10,000 or more during a FY. The TDS is applicable even on all the outstanding deposits, even those made prior to 1.6.07.
It appears application of 20% deducted last year, was an error on the part of the bank. This time they have applied the correct rate of 10%.
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