Ask Mint | Salaried can file tax returns after a year

Ask Mint | Salaried can file tax returns after a year
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First Published: Wed, Mar 17 2010. 09 14 PM IST

Harsh Roongta, CEO, Apnapaisa.com
Harsh Roongta, CEO, Apnapaisa.com
Updated: Wed, Mar 17 2010. 09 14 PM IST
I plan to sell my house that I purchased two years ago in Coimbatore and buying a new one. Can I claim exemption on the profit under long-term capital gains tax? Will I be required to invest the full-sale proceeds to do that? What is the limit of exemption under long-term capital gains? What is the time limit within which I need to reinvest?
—Suhail Shah
Harsh Roongta, CEO, Apnapaisa.com
Since you have held the house for only two years, the profit on the sale of your house will be treated as short-term gains and will be treated on a par with your regular income and will be taxed accordingly. Since the benefit for tax exemption is available only on long-term capital gains, you can’t avoid tax by investing the proceeds.
I have received my Form 16 from my company for this year. The last date to submit it is 31 July, but I am going abroad for a few months and won’t be back by then. If I submit it after 31 July, will I have to pay a penalty?
—Rachael
You are probably referring to filing of returns. The due date of filing of return of income for salaried employees is 31 July 2010 for the fiscal year ending 31 March 2010. However, if tax deducted at source is adequate and you do not have any other income, you can file the income tax return by 31 March 2011 without attracting any penalty or interest provisions. You can still file your return for the year ended 31 March 2010 till 31 March 2012 but the assessing officer can levy a penalty of Rs5,000 for not having filed your returns by 31 March 2011.
My daughter is in the US for her higher studies for which we took an education loan from a public sector bank in Chennai. I am a co-applicant in the loan and have paid the interest part. Are interest payments on the loan tax exempt in my hands?
—Asim Shukla
You will be able to claim the benefit of deduction on the interest paid on loans taken for higher education of your daughter from a specified financial institution or charitable institution. It may be noted that the deduction available is only in respect of interest paid and no part of the principal is eligible for tax benefits.
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Harsh Roongta is CEO, Apnapaisa.com
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First Published: Wed, Mar 17 2010. 09 14 PM IST