Deduction u/s. 80c
This query is : Open
29 February 2016
Dear Sir,
An assesse has invested in PPF for Rs. 1.50 Lac and also invested in Sukanya Samriddhi account of Rs. 1.50 Lac for his girl child for the F.Y. 2015-16 relevant to a.Y. 2016-17. My question is whether he will be get deduction u/s. 80C of Rs. 3.00 Lac or Rs. 1.50 Lac.
Thanks,
Abhishek.
An assesse has invested in PPF for Rs. 1.50 Lac and also invested in Sukanya Samriddhi account of Rs. 1.50 Lac for his girl child for the F.Y. 2015-16 relevant to a.Y. 2016-17. My question is whether he will be get deduction u/s. 80C of Rs. 3.00 Lac or Rs. 1.50 Lac.
Thanks,
Abhishek.
29 February 2016
An individual or HUF can enjoy the benefit of deduction u/s 80 C in computing his taxable income. There are a large number of avenues for investment eligible for deduction u/s 80C, but the deduction is limited to a maximum of Rs.1,50,000/-. Therefore in the case of your assessee he is entitled to a deduction of only Rs.1,50,000/- not Rs.3,00,000/-.
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29 February 2016
Dear Sir,
An assesse had received notice from IT Department for making compliance. In this case assesse had received gift of Rs.3.00 Lac from her husband. In the Compliance sheet there is options which I thought was applicable 1) Investment/ Expenditure is out of gifts/loans from others, 2) Investment/Expenditure out of exempt income. I have selected the 1st option i.e. Investment/ Expenditure is out of gifts/loans from others.
Please tell whether it is correct or not and whether there would be any problem. Hope to get a reply from you.
Thanks,
Abhishek.
An assesse had received notice from IT Department for making compliance. In this case assesse had received gift of Rs.3.00 Lac from her husband. In the Compliance sheet there is options which I thought was applicable 1) Investment/ Expenditure is out of gifts/loans from others, 2) Investment/Expenditure out of exempt income. I have selected the 1st option i.e. Investment/ Expenditure is out of gifts/loans from others.
Please tell whether it is correct or not and whether there would be any problem. Hope to get a reply from you.
Thanks,
Abhishek.
29 February 2016
In your reply the source of investment is explained. However, in case of gift to the spouse, the income from the investment will be clubbed with the income of donor as per provisions of section 64 of I.T.Act, 1961. In case you have not given details of the donors, see if there are any other relatives except husband and father-in-law / mother-in-law from whom the gift can be shown as received. Else the income from investments though accruing to the wife will be clubbed to the income of the husband and taxed.
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29 February 2016
Dear Sir,
I understand what you say and I am very much thankful to you but Sir there are only two options given by the IT department for this type of case. So please tell that my selection of 1st option is right or wrong in this matter.
Hope you will reply as before.
Thanks,
Abhishek.
I understand what you say and I am very much thankful to you but Sir there are only two options given by the IT department for this type of case. So please tell that my selection of 1st option is right or wrong in this matter.
Hope you will reply as before.
Thanks,
Abhishek.
29 February 2016
I know there are only two options. Before an answer can be given in yes or know a number of details about the assessee, family, sources of income, tax payments made by the family members, etc. The best person to answer the question would be your IT consultant. However, prima facie your answer is more acceptable , since in case of 2nd option too the Department will ask for details of the income. I would be unable to give you a more satisfactory answer, in view of the personal and confidential income required for the advice.
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29 February 2016
Dear Sir,
I am very thankful to you once again for your prompt and valuable reply. If your don't feel disturbed kindly answer one last query i.e. a religious institution only registered under the Society Act wants to file ITR- 5 for a.Y. 2015-16. If you please tell what will be the suitable code for nature of business in sheet General- 2 in ITR- 5.
Hope you will be answer my last query for the day.
Thanks once again for your previous replies. Please answer and good night to you.
Thanks,
Abhishek.
I am very thankful to you once again for your prompt and valuable reply. If your don't feel disturbed kindly answer one last query i.e. a religious institution only registered under the Society Act wants to file ITR- 5 for a.Y. 2015-16. If you please tell what will be the suitable code for nature of business in sheet General- 2 in ITR- 5.
Hope you will be answer my last query for the day.
Thanks once again for your previous replies. Please answer and good night to you.
Thanks,
Abhishek.
01 March 2016
Dear Sir,
You have not given any reply to my last query.
Hope you will reply considering the urgency.
Thanks,
Abhishek.
You have not given any reply to my last query.
Hope you will reply considering the urgency.
Thanks,
Abhishek.
01 March 2016
By the time your query came in, I had already logged out. Just logged in today.
The nature of business in case of assessees eligible file ITR - 5 for a religious registered society is "1001" as per Departmental instructions. This code represents "10: Other Sector [other than (1) to (9) above]"
Hope this clarifies your query.
The nature of business in case of assessees eligible file ITR - 5 for a religious registered society is "1001" as per Departmental instructions. This code represents "10: Other Sector [other than (1) to (9) above]"
Hope this clarifies your query.
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02 March 2016
Dear Sir,
I am very much thankful to you Sir that you have replied and also justified the answer. Many Many thanks to you once again.
Thanks,
Abhishek.
I am very much thankful to you Sir that you have replied and also justified the answer. Many Many thanks to you once again.
Thanks,
Abhishek.
02 March 2016
You are most welcome. I am glad I could be of some assistance to you in resolving your doubts.
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08 May 2016
Dear Sir,
An Assesse had Income Tax Demand for A.Y. 2003-04 for mismatch of TDS deducted from bank's fixed deposit in Form 16A and with IT Deptt. Now in A.Y. 2015-16 he had a refund for a certain sum of money which has been adjusted by the IT Deptt against the outstanding demand for A.Y. 2003-04. The Assesse has approached the ITO of the respective ward because in A.Y. 2003-04 it was a manual filing and the demand raised by the ITO, but the ITO told him that as the Return for A.Y. 2015-16 has been file electronically so the Assesse has to make rectification online for the demand adjusted. My question to you is how is it possible as their in no mistake in the Return filed for A.Y. 2015-16.
Please help me to sort out of the matter. I would be very thankful to you if you suggest me what to do now as TDS deducted for A.Y. 2003-04 was fully reflected in Form 16A given by bank but the IT Deptt says their is a mismatch of TDS in their site.
Thanks,
Abhishek Roy Choudhury.
An Assesse had Income Tax Demand for A.Y. 2003-04 for mismatch of TDS deducted from bank's fixed deposit in Form 16A and with IT Deptt. Now in A.Y. 2015-16 he had a refund for a certain sum of money which has been adjusted by the IT Deptt against the outstanding demand for A.Y. 2003-04. The Assesse has approached the ITO of the respective ward because in A.Y. 2003-04 it was a manual filing and the demand raised by the ITO, but the ITO told him that as the Return for A.Y. 2015-16 has been file electronically so the Assesse has to make rectification online for the demand adjusted. My question to you is how is it possible as their in no mistake in the Return filed for A.Y. 2015-16.
Please help me to sort out of the matter. I would be very thankful to you if you suggest me what to do now as TDS deducted for A.Y. 2003-04 was fully reflected in Form 16A given by bank but the IT Deptt says their is a mismatch of TDS in their site.
Thanks,
Abhishek Roy Choudhury.
14 May 2016
The Department relies nowdays on the AS 26 Report generated by TRACES to match the TDS claimed with the TDS deposited. Quite often there is a mismatch. The reason being, many deductors either fail to deposit the TDS in time or even if deposited fail to file the Quarterly TDS Return in time. Unless the TDS Return is filed TRACES cannot issue Form 16A and no other Certificate of TDS is valid.
For the Assessment Year 2003 - 04 was any rectification petition u/s 154 of I.T.Act 1961 filed or any appeal to CIT (Appeals) submitted. Otherwise it will deemed that you have accepted the assessment made by the Department including the additional demand raised. If you had filed the rectification petition - how was it disposed off? - same for appeal filed. The Refund due for Assessment Year 2015 - 16 was adjusted against outstanding demand of 2003 - 04 and the Assessing Officer is bound to inform you how the old demand was uploaded into the system (before A.Y. 2008 - 09 e-filing was optional and then gradually extended to cover more and more assessees) since the demand pertains to pre e-filing period. The excuse that the rectification is for 2015 -16 can only be accepted if the ITO can show that he has settled your complaint for 2003 - 04 by giving credit for the excess TDS which was not originally considered in raising a demand.
In case the ITO refuses to help you out, and you had taken steps for rectification of the wrong demand in 2003 - 04,then approach the Joint Commissioner of Income Tax and if required the jurisdictional Commissioner of Income Tax. However, if you had taken no steps for correcting the wrong demand raised in 2003 - 04, then nothing can be done since all avenues, including discretionary powers of the Board / Commissioners are time barred.(Eight years from the end of the Assessment Year).
As you have rightly observed, there is no error apparent from records for A.Y 2015 - 16. However as a matter of abundant caution file a rectification petition u/s 154 online for the A.Y. 2015 - 16 stating that the adjustment for 2003 - 04 is wrong as the matter has already been squared up and there is no outstanding demand. The System will then ask you to refer to the Assessing Officer, when the power for issuing refund will automatically vest with the ITO and he can then proceed to rectify the errors made in 2003 - 04.
For the Assessment Year 2003 - 04 was any rectification petition u/s 154 of I.T.Act 1961 filed or any appeal to CIT (Appeals) submitted. Otherwise it will deemed that you have accepted the assessment made by the Department including the additional demand raised. If you had filed the rectification petition - how was it disposed off? - same for appeal filed. The Refund due for Assessment Year 2015 - 16 was adjusted against outstanding demand of 2003 - 04 and the Assessing Officer is bound to inform you how the old demand was uploaded into the system (before A.Y. 2008 - 09 e-filing was optional and then gradually extended to cover more and more assessees) since the demand pertains to pre e-filing period. The excuse that the rectification is for 2015 -16 can only be accepted if the ITO can show that he has settled your complaint for 2003 - 04 by giving credit for the excess TDS which was not originally considered in raising a demand.
In case the ITO refuses to help you out, and you had taken steps for rectification of the wrong demand in 2003 - 04,then approach the Joint Commissioner of Income Tax and if required the jurisdictional Commissioner of Income Tax. However, if you had taken no steps for correcting the wrong demand raised in 2003 - 04, then nothing can be done since all avenues, including discretionary powers of the Board / Commissioners are time barred.(Eight years from the end of the Assessment Year).
As you have rightly observed, there is no error apparent from records for A.Y 2015 - 16. However as a matter of abundant caution file a rectification petition u/s 154 online for the A.Y. 2015 - 16 stating that the adjustment for 2003 - 04 is wrong as the matter has already been squared up and there is no outstanding demand. The System will then ask you to refer to the Assessing Officer, when the power for issuing refund will automatically vest with the ITO and he can then proceed to rectify the errors made in 2003 - 04.
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15 May 2016
Dear Sir,
An Assesse in every year receives Interest on NSC in his Savings Bank Account. So whether this Interest on NSC in eligible for deduction u/s. 80C. As it says that NSC interest is taxable. However, as it is a cumulative scheme (e.g. interest is not paid to the investor but instead accumulates in the account), each year’s interest is considered reinvested in the NSC.Since it is deemed reinvested, it qualifies for a fresh deduction under Sec 80C.
Please tell as early as possible. I would be thankful to you.
Thanks,
Abhishek Roy Choudhury.
An Assesse in every year receives Interest on NSC in his Savings Bank Account. So whether this Interest on NSC in eligible for deduction u/s. 80C. As it says that NSC interest is taxable. However, as it is a cumulative scheme (e.g. interest is not paid to the investor but instead accumulates in the account), each year’s interest is considered reinvested in the NSC.Since it is deemed reinvested, it qualifies for a fresh deduction under Sec 80C.
Please tell as early as possible. I would be thankful to you.
Thanks,
Abhishek Roy Choudhury.
18 May 2016
Interest on NSC can only be treated as re-invested if it is offered for tax. The Indian Posts and Telegraphs Department has issued an accrual table for interest on NSC and it is on Rs.100/- Accordingly, the interest for each year has to be computed and included in the Gross Total Income. The interest can then be treated as re-invested, since it has not been actually received. In the final year, on maturity only the interest of the last year is included in Gross Total Income and no benefit of re-investment on such interest can be availed.
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09 June 2016
Dear Sir,
An Assesse had received arrear pension in F.Y. 2013-14 and he had paid the Income tax on the taxable pension income and filed the return. Now in June'2016 the Govt organisation from where the assesse got the pension gave a notice to the assesse that they have mistakenly given more arrear pension for F.Y. 2013-14 and they want the excess amount back from the Assesse. Please tell me one thing can it be possible that the assesse can claim tax refund from Income tax on the excess pension amount which he should return to his employer.
Thanks,
Abhishek.
An Assesse had received arrear pension in F.Y. 2013-14 and he had paid the Income tax on the taxable pension income and filed the return. Now in June'2016 the Govt organisation from where the assesse got the pension gave a notice to the assesse that they have mistakenly given more arrear pension for F.Y. 2013-14 and they want the excess amount back from the Assesse. Please tell me one thing can it be possible that the assesse can claim tax refund from Income tax on the excess pension amount which he should return to his employer.
Thanks,
Abhishek.
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