Failed to file income tax return by July. I did it in September. My annual income is around 5 lakhs. They said that since ‘zero return’ is to be filed, no penalty should be paid even if the payment is made after the due date. However, a deduction of Rs.1,000 was made. How to get it back?
Ashok, Chengalpattu.
Cannot be returned. Someone has misinformed you about the Income Tax Department penalty. As per Section 234F of the Income Tax Act, there is no penalty for late filing of ID if your total annual income is less than 2.5 lakhs. If the annual income is between Rs 2.5 lakh and Rs 5 lakh and the IT return is not filed by the end of July, there is a penalty of Rs 1,000. A penalty of Rs 5,000 has to be paid if the income is above five lakh rupees and the IT is filed late.
This is why it is said to file the ID return by the due date. Not only income tax, but also all fees and taxes including electricity bill, property tax, water tax, etc., on due date. Otherwise, in this computer age, the next day after the due date, they impose unfair fines and postpone it.
My income tax return is still under consideration even though I filed it on time. Even after complaining twice, like a stone placed in a well, there is no movement. What should I do?
A. Srivas, Alappakkam.
Your income tax assessment may be wrong. Any investment income may not have been included in your IT return. It can be taken from your Form 26AS and re-assessed. There may be a mistake in the bank details you have given to claim the ‘refund’ amount or the home address you have given to claim the cheque. Or, there may be any income tax arrears due from previous years.
In return, this rebate amount may be deducted. For any information please contact Income Tax Department toll free number 1800-180-1961 or email Income Tax Department.
I have two ‘PAN’ cards. One should be returned. How to do?
Ramesh, Kottivakkam.
Having two PAN cards is an offense under Section 272B of the Income Tax Act. For this, a fine of up to ten thousand rupees may be imposed. Write a letter to the ‘Assessing’ Officer of your area income tax department mentioning your second PAN card number, your name and date of birth. In it, mention ‘I want to return this second PAN card’.
This letter can be sent directly to the Income Tax office. Or, you can send it by speed post and get an ‘acknowledgment’ receipt and keep it. This will serve as proof of your request to remove the additional PAN card.
The company I work for is closing down this month. On closing, will I get tax deduction on the ‘settlement’ amount given by my company?
V. Venkatakrishnan, Chennai.
I do not see any such exemption. In the final settlement, TDS may be deducted on certain items. They will show in your Form 26AS. Otherwise, the ‘settlement’ amount received by you will be treated as your income.
I bought a house. Then little by little, I built a house on it at my own expense. Now sell it. How to calculate long term capital gains tax while paying income tax on sale amount?
P. Pandiaraja, Email.
Add up the sum of the down payment of the house, the cost of the building above, and then any repairs if any. From this, find out how much the value of the house should have gone up now through the calculation called ‘Indexation’. If the amount realized on sale of the house is more than this ‘indexation’ amount, long term capital gains tax of 20 per cent has to be paid. Consult a good auditor to do this calculation. Many people have doubts about this long-term capital gain, as can be seen from the constant questions about it.
Even though I have sold half of my house, I am getting full house tax. Who to contact to remove it?
Balamurugan, Email.
Approach the nearest Corporation Zonal Office. They will ask for the necessary documents for the correction to be made in the house tax. They will ask you to fill Form 6. Later, an officer will come from that office to assess the home. He will reassess the current amount of space and adjust the line accordingly. A little effort is required. This transition will happen gradually.
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