Q. I am an NRI. If I gift Rs 20 lakh to my major daughter in India and if she invests it in a bank fixed deposit, will either of us be liable to pay income tax? – Wilson Furtado
According to Section 56(2), any sum received from relatives is not chargeable to tax. So, if this amount is received as gift from a father, it will be exempt in her hand. Further, as per Section 64, income generated from this gifted amount will be clubbed in her income and she will be required to pay tax and file the return in India if her gross total income exceeds the minimum exemption limit of Rs 2,50,000.
Q. I do F&O transactions and tax audit required. My company’s turnover is Rs 1 lakh; brokerage and other expenses Rs 4,000; profit before brokerage, taxes and expenses Rs 8,000. Is tax audit mandatory in my case? —Kicha P
If you declare profit after brokerage, taxes and expenses below 6% of turnover, then following situation may arise:
* Tax audit would be applicable in above example only if the option of presumptive taxation was opted in last year and current year profit disclosed is less than 6%.
* If presumptive taxation was not opted in last year and books are maintained for above example in the year under consideration, no audit would be required even if the net profit claimed is below 6%.
Q. TDS was deducted but not reflected in 26AS in FY17-18. It was reflected in FY 19-20. I was not taxable for FY17-18. That’s why I did not file my ITR for AY18-19. Can I get refund if I am allowed to file ITR AY18-19? —Nintu Kumar
Ordinarily, TDS is to be claimed in the year in which the income is offered to tax. You cannot claim refund for TDS deducted in FY17-18 as time limit of filing ITR has passed. However, you can still pursue with the jurisdictional income tax authority (Principal Commissioner of Income Tax) and the authority may grant the refund after due verification and ensuring certain safeguards. However, it must be noted that no such application is entertained beyond six years from the end of the assessment year for which such application made. However, you may find it difficult considering that it is reflected in FY 2019-20. Hence, would suggest to take professional help in this regard.
(The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to firstname.lastname@example.org)