Income tax e-filing: Questions you probably have in your mind

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The time to file your income tax return is here! You must be struggling with many doubts and certain questions too. We have listed some common questions people quite often have every tax season. Read through the below questions and find out their answers right there and then.

Q: I have my long-term capital gains as the only source of income. Am I eligible for the income tax deductions u/s 80C to 80U?

Well, you are not eligible for the tax deductions u/s 80C to 80U if you have long-term capital gains as the only source of your gross total income. However, if you a resident individual, then you can avail online income tax efiling, based on your long-term capital gains by including it in your basic exemption limit of income that is taxable. NRIs are not eligible for such a tax rebate.

Q2: Do both Pension and Family Pension come under the head ‘Income from Salary’, which is taxable?

Your Pension is under the head ‘Income from Salary’, whereas Family Pension is under the head ‘Income from other sources’. Both of these income sources are taxable under their respective heads.

Q3: Is the maturity amount received from a life insurance taxable?

Any amount plus bonus received as the maturity benefit of a life insurance policy purchase from policybazaar or directly from an insurer is tax exempted under section 10(10D) with the following stipulations:

  • The life insurance policy must be issued between 1st April 2003 and 31st March 2012 with the annual premium should not more than 20% of the actual sum assured by the policy.
  • In case of any other life insurance policy issued after or on 1st April 2012, the annual premium paid for a policy year should be below 10% of the actual sum assured.

Note: The term ‘actual sum assured’ is the least of the sum assured in the entire policy term, which also excludes any bonus or the premium given back to the insured.

Q4: Do I have to pay taxes on the money I received from my friends and relatives as a gift on the occasion of my marriage?

No. You don’t have to pay any tax on the money received as a gift from your friends/relatives.

Q5: Do I have to pay taxes on the money I received from my friends and relatives as a gift?

Yes. You have to pay tax on the money received from your friends/relatives as a gift, in case the amount is above Rs. 50,000 in a calendar year.

Q6: How much above Rs. 50,000 is taxable if received as a gift from friends or relatives?

The entire amount exceeding Rs. 50,000 is taxable when received as a gift from friends/relatives in a calendar year. The tax computation falls under the head ‘Income from other sources’. The tax is calculated on the basis of aggregated amount of the gifts and not on the individual gifts.

Q7: Is a loss under the head ‘Income from House Property’ considered during the computation of TDS deductible from the salary?

Yes. Any loss incurred eligible to be counted under the head ‘Income from House Property’ is considered the computation of TDS deductible from the salary. Remember! No other losses qualify to be considered to reduce TDS whatsoever.

Q8: Is any gift received in kind taxable?

Yes. Any gift whether movable or immovable received in kind is taxable if its value exceeds Rs. 50,000.

Q9: Is a minor child’s income eligible for clubbing with a parent’s income?

Yes. A minor child’s income is eligible for clubbing with that of a parent.

Q10: Does my income qualify for tax exemption after clubbing with that of my minor child’s?

Under section 10 (32) of the Income Tax Act, you can claim tax exemption equal to an amount that is lesser out of Rs. 1,500 or the minor child’s income.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and loves to help people with their Tax Queries.