No income tax rebate on FD losses due to liquidation of firm

By: |
New Delhi | Published: March 12, 2019 1:37:02 AM

When the firm gives you Form 16 for FY18-19, there should be a clear bifurcation of the total gratuity received, into Rs 10 lakh considered as tax free amount and balance on which tax has been deducted.

money, income tax, income tax rebateThe government has clarified in a press note dated January 5, 2012 that a demand of less than Rs100 need not be collected from the taxpayer.

I put Rs 4 lakh in fixed deposit scheme in United Co-operative Commercial Bank, Kanpur five years ago. The liquidator has informed me that I will get only `1 lakh back. I am an army pensioner and file I-T return every year. Can I get tax rebate on the losses?

– RN Singh

The amount of loss suffered by you is not allowed to be claimed or adjusted under Income-Tax Act and hence, you will not be able to claim any tax rebate or deduction in this regard.

I retired from a private firm and got gratuity of `20 lakh. When it gives me Form 16 in June, do I have to ask the company to specify the complete amount in some format so that I can file my ITR properly?

—Surender Kumar Bisht

When the firm gives you Form 16 for FY18-19, there should be a clear bifurcation of the total gratuity received, into Rs 10 lakh considered as tax free amount and balance on which tax has been deducted. Further, while filing your income tax return for the respective financial year you must disclose the complete amount received as gratuity and claim exemption for `20 lakh and consequently claim the refund for the excess tax already deducted on gratuity by your employer.

I got a tax demand of `4 . I tried to pay the money online but could not pay. Should I pay the money by cheque or give `4 in coins to the I-T office locally?

—Kavish Gupta

The government has clarified in a press note dated January 5, 2012 that a demand of less than Rs100 need not be collected from the taxpayer. Your tax demand is Rs 4 , so you need not to pay this amount.

I spend Rs 2 lakh every year for my mother’s treatment who is suffering from Alzheimer disease. Can I claim any income tax benefit?

—Rakesh Kumar

Yes, you can claim deduction under Section 80 DDB of Rs 40,000 in the year in which the expenditure has been incurred. As per Section 80DDB, when a person pays any amount for the medical treatment of specified diseases, then such person can claim deduction of actual amount paid or Rs 40,000 whichever is less. If your mother is aged 60 in the year of expenditure then you can claim a deduction of Rs 60,000 and if she is of 80 years or more then Rs 80,000 deduction can be claimed. You will need to obtain a prescription from the concerned specialist for claiming this deduction.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonalfinance@expressindia.com

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.