I have filed my ITR before the due date and have received the intimation under Section 143 with no tax dues. An additional income from interest is reflecting in my AIS now. Should I file a revised return?
Umesh Sharma
As you have identified additional income from interest in your AIS that was not included in your original ITR filing, it is advisable to file a revised return. Even though you have received an intimation under Section 143 with no tax dues, the disclosure of all income is mandatory under tax laws to avoid future discrepancies or potential penalties. By filing a revised return, you can ensure that your income records are accurate and fully compliant with the Income Tax Department’s requirements.
I am a freelancer and earn about Rs 20 lakh a year. Should I opt for the new tax regime or opt for presumptive income tax?
S K Mohan
Firstly, it is important to understand that presumptive taxation is a method of computation of taxable income, whereas old/ new tax regime are methods for computation of income tax payable. You can compute your taxable income based on presumptive taxation and compute income tax under the new tax regime. Presumptive taxation under section 44ADA applicable to professionals or freelancers is applicable only in case of specified professionals and where gross receipts (before deductions) do not exceed Rs 50 lakh. The specified professions are legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration.
These include the profession of company secretary and information technology. If you satisfy these conditions, you may opt for the presumptive tax regime. Under the presumptive tax regime, 50% of the gross receipts are considered as taxable under the head ‘income from business and profession’ (75% if gross receipts are in cash). In your case, Rs 10 lakhs will be considered taxable income and if there is no other income, the tax payable will be NIL under the new tax regime.
How can I get a tax deduction on an education loan?
Rhishabh Kumar
When you take an education loan for your son’s higher education, you can claim a tax deduction under Section 80E of the Income Tax Act. The deduction is available only on the interest portion of the education loan, not on the principal repayment. There is no upper limit for the amount you can claim on the interest paid. The loan must be taken from a financial institution or an approved charitable institution. Loans from family members or friends are not eligible for this deduction.
You can claim the deduction for a maximum of eight consecutive years starting from the year in which you begin repaying the loan interest, or until the interest is fully repaid, whichever is earlier. Higher education means any course of study pursued after passing the senior secondary examination.
(The writer is partner, Nangia & Co LLP)
