My son works abroad. He sends me Rs 30,000 every month. Is this amount taxable for me? I am 60.
Gifts received from relatives, as defined in the Income Tax Act, are not taxable in the hands of the recipient. The money you receive from your son will be treated as a gift from a relative and will not be taxable in your hands.
I am not very well versed with investments. Hence, I plan to hand over some amount to my husband, who, in turn, will invest it for tax-saving purposes. Here, who will get the tax benefit?
The benefit of tax exemption, in respect of tax-saving investments, can only be availed by the person who makes the investments. If your husband makes investments, he can claim the tax benefits in his return of income.
However, the income arising from such investments will be clubbed with your income and taxed in your hands, since the investments were made by him out of funds transferred by you to him, without adequate consideration.
What is the difference between Section 44AD and Section 44 AE?
Section 44AD provides for a method of estimating income from business (other than a business of plying, hiring or leasing of goods carriages), where the turnover or gross receipts in the previous year does not exceed Rs 60 lakh. The income deemed under Section 44AD shall be an amount equal to or higher than eight per cent of the turnover or gross receipts of such business. Section 44AE provides for a method of estimating income from the business of plying, hiring or leasing of goods carriages owned by a taxpayer owning not more than 10 goods carriages. The presumptive or estimated income is dependent on the nature of the goods carriage. For a heavy goods vehicle, the income would be Rs 5,000 per every month or part of the month; for other than a heavy goods vehicle, the income would be Rs 4,500 per vehicle for every month or part of the month.
The last date for filing income tax returns is July 31. But can I not file it anytime before that?
You can file your income tax return any time after the end of the financial year, once the tax authorities notify the return forms in which the return for that financial year should be filed. The return forms for the year ended March 31, 2012 have been recently notified.
Budget FY13 did not mention anything about infrastructure bonds. It has been written that these have been discontinued. Is there any chance of the government bringing back these bonds? Aren’t any such bonds available in the market?
True, the Budget speech this year made no direct reference to discontinuation of infrastructure bonds, but there is no proposal to extend the benefit available of Rs 20,000, under Section 80CCF for investments in specified infrastructure bonds. Accordingly, there would be no such tax-saving bonds available in the market for 2012-13.
The writer is a tax partner at Deloitte, Haskins & Sells. Views expressed are his own. Send your queries at yourmoney@bsmail.in
