My company deducted more tax than was due because I failed to submit proof of tax savings. I was given the Form 16A, which listed tax deducted at source and the amount refundable to me. However, I could not file my tax by 31 July. Can I file a delayed return to get my refund? - Sunil Bhatt, Ahmedabad.
You can file delayed returns for up to two years from the end of the financial year. So, you have till 31 March 2011 to file your income-tax return for the period 1 April 2009 to 31 March 2010. While you will not have to pay a penalty as all the taxes have been paid or deducted, you will not be eligible for a refund.
You can claim a refund or file a revised return only if you have filed your return by the due date, that is, 31 July. You even have the option of filing your return till 31 March 2012, but in this case you may have to pay a penalty of Rs 5,000.
I was divorced recently and, as part of the settlement, I paid Rs 1.5 lakh to my wife. Will I get tax relief on this amount? Also, will she have to show this alimony amount as income in her tax return? - Vinod, New Delhi
The maintenance received from an ex-husband is considered capital asset and, hence, is taxable. However, as you have paid the alimony as a lumpsum as opposed to a monthly payment, it will not be considered as income and won't be taxed in the recipient's hands. For the same reason, you will not be eligible for tax deduction on this amount.
If I gift my wife some money and she invests it in shares, will the capital gain be treated as hers or mine? Under the new Direct Taxes Code (DTC), will it help if I form a Hindu Undivided Family (HUF) to reduce my income-tax liability? What is the procedure for setting up an HUF? -Gowri Shankar, Bengaluru
If you gift money to your wife and she invests it, the capital gain from the investment will be clubbed with your income and you will have to pay tax on it. However, if you offer it as an interestbearing loan and she invests the amount, the gain will be taxable in her hands.
She will also have to show that she is repaying the loan to you. Starting an HUF is a good tax-planning exercise even under the current regime. Under the DTC, you can get the benefit of a higher tax slab.
To set up an HUF, you need to open a bank account in the name of the HUF with the money received during a wedding or any other family function. In this account, you can deposit only the money that has been gifted, not personal funds. Get a permanent account number (PAN) and start filing your income-tax return if you receive more than Rs 50,000 from a non-relative in a financial year.
My father has invested Rs 1.98 lakh in the monthly income scheme of the post office, with me as the first unit holder. What will be the tax implication for me and how can I show this in my return? - Saubhik Banerjee, Kolkata
Under this scheme, the interest on the invested amount is credited to the first unit holder. So, even though your father has invested the money, the interest on Rs 1.98 lakh will be credited to you and will be taxable in your hands. In the income-tax return form, you should include this amount under the head 'Income from other sources'.
I earned short-term capital gain (STCG) after selling a few shares. However, my overall income for the year, including the STCG, is less than Rs 1.6 lakh. Do I have to pay tax? -A.S. Raju, Surat
If your overall income is below the basic exemption limit of Rs 1.6 lakh, you do not have to pay the requisite 15% tax on STCG. In case the bank has deducted tax at source (TDS), you could file your income-tax return to claim a refund.
I am 27 years old and am planning to get married next year. Though my employer provides medical insurance, I want to enhance it. My father is set to retire by 2013, after which I will take care of his medical insurance needs too. Should I go for an individual or a family floater plan? -Rajesh Kumar, Bengaluru
It is advisable to buy a health insurance cover along with the one provided by your employer. you can take an individual policy now and, after marriage, change it to a family floater cover to include your wife. in the case of your father, it will be beneficial to opt for an adequate health cover before he reaches the age of retirement. this is because your father will need to wait for at least three years for the pre-existing disease coverage to be applicable.
You will be eligible for the income-tax benefit under Section 80D for the premiums you pay for yourself and your father. You can opt either for a standalone policy or consider a top-up cover, which is not as costly. The latter will cover your family after the initial Rs 3-4 lakh, which will bring down the premium drastically.
What is the difference between the health plans offered by life insurance companies and those by general insurance firms? - Ranjit Kapur, New Delhi
Life insurance companies often offer lump-sum benefit plans, such as daily cash on hospitalisation or a personal accident cover, as riders to life insurance plans. These may not be adequate for you and can lead to complication at the time of making a claim. It is advisable to go to a health insurance provider for a plan that covers hospitalisation or OPD expenses. However, irrespective of the provider, go through the fine print before buying a plan.
