The Hindu Business Line : With PAN, can I file returns in any of the I-T offices?

My PAN (Permanent Account Number) I got from my native place in Kerala, whereas I am now working in Andhra Pradesh. I have been filing my IT return in the same income-tax office. Can I can file my IT return in any of the income-tax offices if I have PAN. Last year I filed my return at Vijayawada. Is it okay?

Mathew, email

The Income-Tax Department is yet to be completely integrated through the Net. Therefore, you would have done well to inform the existing jurisdictional officer about the change of address warranting filing of return elsewhere with a copy to the new jurisdictional officer. This would obviate trouble and facilitate smooth transition. I agree that in course of time, when the department is completely networked, PAN should provide an integrated picture like anywhere banking.

Down Payment Route

I would like to know if one can get income-tax benefit for the following (and also under which Section). A House Building Loan under the down payment scheme, wherein 100 per cent payment has been made to the builder (directly by the bank and I have the receipt) and full EMI commences with effect from January 2007. The house is expected to be completed by early next year. The lending bank has also mentioned that one can get IT benefit under the down payment scheme. Can one get both HRA and tax deductions for the loan if the house/flat is far from place of work? If the loan has been applied for jointly, can both the husband and the wife get tax benefits?

Anonymous

The bank's claim that deduction under Section 80C is available is not incorrect. However, it is not available in respect of the amount paid by it to the house builder. Rather, it would be available only for the repayments made to the bank, which in your case starts, from January 2007. Because Section 80C clearly posits payments/investments being made by the assessee in order to be eligible for the benefit under it.

Exemption for HRA and deduction for house building loan can be allowed simultaneously because they are not mutually exclusive. It is not even necessary to live in a far off place to get this twin benefit. You may be in the same town where both the rented house in which where you live as well as your own house are situated. Yes, both can get deduction under Section 80C for joint loans but only for the repayments respectively made by them. Needless to say, the house should also be registered in the joint names.

Reappointment of director

Can an additional director appointed by the board under Section 260 of the Companies Act, 1956 be reappointed at an EGM convened before the next AGM till which time his tenure lasts? If appointed at the EGM before the next AGM, is it valid, and, if not, what are the consequences of such an appointment?

Murali Manohar, email

An additional director who can be appointed only by the board that holds office up to the date of the next annual general meeting. The language of the first proviso to Section 260 dealing with additional directors does not contemplate a shorter duration than this. In the event, if the additional director so appointed wants to be appointed by the EGM before the next AGM, he has to first resign. Appointment in an EGM is not precluded by any section. In fact, Section 257 permits this when it contemplates appointment of a person other than a retiring director at any general meeting.

Section 88E rebate

How to claim rebate under Section 88E?

Kag, email

This section grants rebate in respect of Securities Transactions Tax (STT) paid by dealers in securities taxed under the head `profits and gains of business or profession'. Let us say the STT paid during the year is Rs 10,000 and the overall income from the securities trade is Rs 25,000. Let us also say that his income from house property is Rs 1 lakh. Assuming he is not a senior citizen, his total income is Rs 1.25 lakh giving rise to a tax liability of Rs 2,500. The average rate of tax for him is 2 per cent. Applying this rate on his income from trading of securities, the tax paid on this count is only Rs 500.

Now all that he can claim as rebate under Section 88E is Rs 500 being lower of the two amounts — STT or the average tax on income subjected to STT.

Capital gains on shares sold

My father gifted his shares to me a few years ago. The company is doing well. I have to demat them before I sell. What would be my capital gains tax liability?

L. Paul, Bangalore

Relax, there is no tax liability because it is long-term capital gains that you are going to make, which is completely exempt from tax if earned through a recognised stock exchange in India as you are planning to do.

A share becomes long-term if the donor and the donee together have held it for more than a year, which evidently you have.

A small security transactions tax would, of course, be collected by the broker or the trading portal, which would, instead of pinching you, leave you with the happy feeling that you have got away lightly. You must thank our policymakers for this.

(ASK! Send in your queries to ask@thehindu.co.in.)

http://MentorQA.blogspot.com

S. Murlidharan

More Stories on : Income Tax | For the Asking

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Discussion on contract farming

Increasing stress on standards

An exercise in Central Excise

Career after CFA?

Concession for the disabled

`CA continues to attract the best of the talent available'

Number Crunch

Just Do IT

With PAN, can I file returns in any of the I-T offices?

Theories are best kept in classroom

The most secure capital

No such thing as a psychosomatic illness