As per the recent change in the Budget,if a person files a return of income without payment of self-assessment tax,it shall be treated as defective return. What would be its implication?
When the tax authority considers the return of income tax furnished by the taxpayer is defective,he may intimate the defect to the taxpayer and give him an opportunity to rectify the defect within 15 days. If the taxpayer rectifies the same (i.e. pays tax and interest) within the specified period,then the return is treated as a valid return. Otherwise,return is treated as an invalid return and the provisions of the Income Tax Act shall apply as if the taxpayer had failed to furnish the return.
I currently earn around Rs 14 lakh annually and have other minor income. Am I eligible to avail of deduction of Rs 25,000 by investing in RGESS?
One of the conditions for being eligible to invest in RGESS is that a new retail investors gross total income should not exceed Rs 10 lakh. The Budget proposes to raise this limit to Rs 12 lakh from FY 2013-14. The term gross total income means the total income computed in accordance with the provisions of this Act,before making any deduction under Chapter VI-A. Thus,if aggregate of net income computed under five heads of income,after giving effect to the provisions for clubbing of income and set off and carry forward of losses but before claiming deduction under Chapter VI-A (Sec 80C,80D etc),is Rs 12 lakh or less,then you will be eligible to invest in RGESS,subject to fulfillment of other conditions.
I am planning to buy a house soon. Recently,I was informed that a 1% tax is to be deducted while making payment to the seller of the house as per new changes in the Income Tax law. Can you tell me as to whether tax is required to be deducted if the house is constructed on agricultural land?
The Finance Bill 2013 proposes to cast an obligation on the buyer of immovable property to deduct tax at the rate of 1%. Immovable property means any land (other than agricultural land) or any building or part of a building. Since this provision covers any building,it can be inferred that any building whether constructed on agricultural or urban land,would be covered.
This provision is effective from June 1 and applies only where the total amount of consideration for the transfer of an immovable property is R50 lakh or more.
I am 65 years old,a senior citizen. Will I be able to claim rebate of R2,000 which has been introduced in this Budget?
As per the proposed amendment,a taxpayer,whose total income does not exceed R5 lakh shall be entitled to claim rebate of R2,000 or tax payable on his total income,whichever is less. The total income of an individual is arrived at after claiming deductions under Chapter VIA i.e. deduction under section 80C,80D,80DD,80E,etc. Thus,if your total income after claiming deduction under section 80C (i.e. investment in LIC,PPF,etc),section 80D (i.e. health insurance premium),etc,is less than R5 lakh then you will be eligible to claim rebate of R2,000.
The writer is founder of RSM Astute Consulting Group
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