By Chirag Nangia
My wife received gift of Rs 20 lakh after her mother sold an ancestral property. Will she have to pay any tax on it?
—S R Venkat
Any sum of money received from the relatives as gift or under a will or by way of inheritance is fully exempt from tax in the hands of the beneficiary. Hence, the Rs 20 lakh is fully exempt from tax. However, your wife shall be required to disclose the exempt gift amount under the schedule ‘Exempt Income’ in the ITR.
My NSC matured in January and interest comes to Rs 50,000. During purchase, I showed it in tax deduction under Section 80C. Does NSC on maturity come under taxable income and will I have to shown it in ITR?
—A K Das
Upon maturity, the accumulated interest is taxable under head ‘other sources’ and you shall have to disclose the income in ‘Schedule OS’ in the ITR form.
Every quarter, I get lumpsum money for the consultancy work that I do. Should I have to file ITR 1 or ITR 4?
ITR-1 Form is a simple form that can be filed by a resident individual whose total income does not exceed Rs 50 lakh and has income from Salary/ Pension or one house property or income from other sources whereas ITR-4 can be filed by a resident individual or HUF or a firm (other than LLP), whose total income does not exceed Rs 50 lakh and has income from business or profession, where such income is computed on presumptive basis or has income from salary/pension or one house property or income from other sources. Hence, the consultancy income earned by you, being in the nature of income from business/profession can be disclosed in ITR-4 if it falls below the prescribed threshold. Else, ITR 3 shall have to be filed.
I have a home loan for which I claim tax exemption as self occupied. I stay on rent and do not claim any HRA. Do I have to mention the address of my flat in my ITR from this year?
ITR Forms notified for AY 2020-21 are exhaustive and seek more details from taxpayers. The forms, among the other things, mandate furnishing of the address of the house property whether it is self-occupied or let out. Hence, you shall have to furnish the address of the house property in respect of which you are claiming exemption of home loan.
The writer is director, Nangia Andersen Consulting Pvt Ltd. Send your queries to firstname.lastname@example.org