By Chirag Nangia
I am a state government employee. I also invest in the stock market place exactly where I get brief-term and lengthy-term capital gains. If I do not sell any shares in a distinct economic year, which ITR type ought to I file?
—Elango
ITR 1 is a uncomplicated type for resident men and women getting total revenue up to Rs 50 lakh, getting revenue from salaries, one property home, other sources (interest, and so forth.) and agricultural revenue up to Rs 5,000. Individuals getting revenue below the head ‘capital gains’, can not file ITR 1, and ought to report particulars of revenue in ITR 2. In the existing assessment year, you may possibly furnish ITR Form 1 rather of ITR 2, if you do not have revenue below the head capital gains, and you satisfy the situations for reporting revenue in ITR 1.
I left my job two years ago and paid Rs 1 lakh as recovery charges, as component of the employment agreement. The salary certificate is displaying the complete quantity received and `1 lakh is not shown. Can I deduct it though filing ITR or will this quantity be taxable?
—Rajendra kr. Maheshwari
There is no provision below the Income-tax Act to permit deduction of notice spend forfeited by the employer when an employee leaves his job, without having serving due notice period. However, the Income Tax Appellate Tribunal, Ahmedabad, in the case of Nandinho Rebello held that only the actual salary received by the assessee was taxable and the quantity received as notice spend could not be taxed as salary revenue.
The rational selection supports the taxation of only the quantity earned and received. Accordingly, you may possibly claim the deduction of Rs 1 lakh and spend taxes on the actual salary received, based on this favorable legal precedent. However, the possibility of litigation can not be ruled out in the absence of express suggestions.
While filling information in TDS deducted on interest revenue, the revenue tax filing internet site is prompting to pick the year of revenue/tax deducted and in the drop down it is displaying years. Should I pick the year 2020 even even though TDS was paid through FY21.
—Adheer Gupta
The year 2020 represents FY 2020-21 in the tax return type. Therefore, you may possibly pick out the year 2020 from the drop-down list in order to proceed with the tax filing course of action.
The writer is director, Nangia Andersen India. Send your queries to