Your Queries: INCOME TAX | Inflated credit card bill shown in 26AS? Get bank to rectify it, then file ITR
December 15, 2020 2:00 AM
Payments made by any person aggre-gating to Rs 1 lakh or more in cash or Rs 10 lakh or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year are reported as Specified Financial Transactions (SFTs) by credit card issuer.
The Income-tax department also submitted that the number of returns filed this year has already exceeded by about 6% to 5.95 crore as on January 10, 2021, compared with 5.62 crore as on August 31, 2019 (last date of return filing).
By Chirag Nangia
For FY 2019-20, I paid around Rs 9.5 lakh to SBI Cards but in my 26AS, the sum shown is Rs 15.16 lakh under head SFT-006. How do I get it corrected? —Dhanesh Malik Payments made by any person aggre-gating to Rs 1 lakh or more in cash or Rs 10 lakh or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year are reported as Specified Financial Transactions (SFTs) by credit card issuer. These SFTs are reflected in Form 26AS. For mismatch between the amount paid and the amount reported by the bank, ask the bank to reconcile the same and rectify it. Once revised figure is reflected in Form 26AS, you may file ITR.
In EI Schedule of ITR which amount is to be disclosed and the same is exempt under which section of IT Act? —Manish Mehta In ITR, Schedule-EI contains details of income not chargeable to tax, i.e., exempt income. Here you shall disclose any interest income which is fully exempt, any dividend income from any domestic company (not exceeding Rs 10 lakh), which is exempt under Section 10(34). Agricultural income, income exempt under Section 10 or any income not chargeable to tax as per provisions of Double Taxation Avoidance Agreement of India with another country is also to be disclosed in this schedule. Apart from this, any other income exempt under any provision of the Act may be disclosed in the EI Schedule, giving exact description.
I have long-term capital loss(LTCL) on sale of flat. I want to carry the loss forward for eight years and adjust it against capital gains later. This year, I had long-term capital gain (LTCG) of Rs 80,000 on sale of shares. But income tax utility has adjusted this Rs 80,000 against my loss on flat and did not give benefit of Rs 1 lakh. Is it correct? —Abhishek Jain While computing total income of an individual, first, inter-head adjustment (set-off) for losses is done and then tax rates are applied. Therefore, LTCL from sale of property shall first be set off against LTCG from sale of shares in the current year. The balance gain or loss shall be taxed or carried forward, as the case may be. In your case, since LTCL is more than LTCG under Section 112A, only net loss shall be carried forward for set-off in subsequent eight years. The ITR utility has correctly set off the loss before granting exemption under 112A.
The writer is director, Nangia Andersen Consulting. Send your queries to firstname.lastname@example.org