Points and more Information on TAX Return

Points and more Information on TAX Return

1.Partner’s share from firms is exempt u/s 10(2A). However, remuneration and interest paid to a partner is taxable in the partner’s hands and is treated as business income.

2.Dividends on shares and income from UTI/Mutual funds are fully exempt u/s 10(34) and (35).

3.Income of a handicapped minor child will not be clubbed in parent’s income u/s 64(1A).

• However, in other cases, all incomes of a minor child (except income from manual work or from any activity involving specialized knowledge or experience) will be clubbed with the parent’s income 64(1A).

• A basic exemption of Rs.1,500 per minor child (other than handicapped) shall be allowed u/s 10(32), from the income so clubbed. Besides, Interest on PPF A/C is exempt u/s 10(11).

4.Income of a handicapped minor child will not be clubbed in parent’s income u/s 64(1A).

• However, in other cases, all incomes of a minor child (except income from manual work or from any activity involving specialized knowledge or experience) will be clubbed with the parent’s income u/s 64(1A).

• A basic exemption of Rs.1,500 per minor child (other than handicapped) shall be allowed u/s 10(32), from the income so clubbed.

• Besides, Interest on PPF A/C is exempt u/s 10(11).

5.Interest on NSC VIII issue accrued every year is deemed to be reinvested and is eligible for deduction u/s 80C.

• However, Interest for the last year is received on its maturity and will not quality for deduction.

• The maximum deduction allowable u/s 80D for medical insurance premium paid is Rs.15,000(Rs.20,000 in case the person insured is over 65 yrs).

• From A.Y.2009-10, an additional deduc. Upto Rs.15,000(Rs.20,000 in case of a Senior Citizen) shall be allowable in respect of medical insurance premium for parent(s).

• Deduction u/s 80DDB is allowed during a year in which expenditure on medical treatment of the assessee or a dependent relative for specified diseases or ailments is actually incurred, for the amount actually paid or Rs.40,000[Rs.60,000 in case the patient is over 65 years], whichever is less.

• However, any amount received under a medical insurance policy shall be reduced from the amount deductible.

• Deduction for house tax on let-out property is allowable u/s23(1) first provision only if it is actually paid.

• Deduction for repairs shall be allowed @ 30% of the net annual value on rental property.

• Income from self-occupied house property which cannot be occupied during a year for reasons of employment/profession at some other place, is deemed as ‘Nil’.

• Loss from house property can be set off against income from another house property.

• If there is net loss under the head ‘house property’ it can be set off against income under other heads.

• If not fully set off the same can be carried forward upto next eight and adjusted only against income from House Property.

Points and more Information on Filling Of TAX Return

• In case an individual has incurred a loss, it is mandatory for him to furnish the returns of income if he wished to carry forward the loss.

• The returns should be filed in the prescribed form.