By Chirag Nangia
I keep in my guardian’s home. To avail advantage of HRA, I pay Rs 30,000 per 30 days as hire to my father. Am I speculated to deduct TDS?
—Vinay Tiwari
As per Section 194-IB, with impact from June 1, 2017, a person and HUF paying month-to-month hire above Rs 50,000 shall deduct TDS on hire at 5%. In your case, since month-to-month hire paid doesn’t exceed Rs 50,000, you aren’t liable to deduct TDS.
l My husband obtained Rs 14 lakh from his mom as a present after she bought her home in 2018. We purchased a flat however we forgot to say it within the ITR of 2018. Now we need to do it as we acquired a discover underneath Section 131. How ought to we do it?
—Vandana Rawat
A discover underneath Section 131 is obtained when the Assessing Officer has motive to suspect that any earnings has been hid or is prone to be hid. From an earnings tax perspective, receipt of a present from a relative doesn’t set off taxation, i.e., it’s exempt within the palms of the receiver. However, it needs to be disclosed as exempt earnings in Schedule EI of the ITR type. As you didn’t disclose the present obtained, you bought the discover. Gather all of the paperwork sought and ship throughout the deadline and co-operate with the tax authorities within the proceedings.
l I’ve a Post Office Monthly Income Scheme (MIS) with my spouse. The curiosity is credited in my financial savings account. How do I compute the tax on the curiosity?
—Ashok Motwani
Interest earned on joint accounts are taxable within the palms of each major and secondary account holders. There is not any TDS on the Post Office MIS, however the curiosity is taxable as per tax slab, to be reported in ‘Schedule OS’. Under Section 80TTA, you may declare deduction of curiosity earned on financial savings accounts held with the put up workplace as much as Rs 10,000. For senior residents, this restrict is Rs 50,000. These deductions could also be claimed, whereas submitting ITR. Furthermore, curiosity on Post Office Savings Bank Account is exempt as much as Rs 3,500 for a single account holder and Rs 7,000 in a joint account underneath Section 10(15).
The author is director, Nangia Andersen India. Send your queries to [email protected]
Source: www.financialexpress.com”