I have incurred a capital loss of Rs 3 lakh on sale of shares. Am I allowed to set this off? If yes, how?
If the loss is a short-term capital loss, that is loss on sale of shares you have held for not more than 12 months, then it can be set off against other short-term capital gains, as well as long-term capital gains that you might have incurred during the same year. However, if it is a long-term capital loss (loss on sale of shares you have held for more than 12 months), it can be set off only against long-term capital gains incurred during the year. If the loss is not fully set off as aforesaid during the same year, it can be carried forward and set off similarly against the capital gains that you might incur in the next eight years.
It is important to note that long-term capital gains, arising out of sale of equity shares on a stock exchange, where the sale has been subject to securities transactions tax are exempt from tax. Hence the loss, if any, from such sale of equity shares will not be allowed to be set off.
I donated close to Rs 1 lakh this year. But, the human resource executive at my office says they don't accept donations for calculating tax liability. How do I get benefits for making donations?
Benefit for donations that have not been considered by the employer while deducting tax deducted at source (TDS) on salaries can be claimed by you while filing income tax return. You can also consider the deduction for such donations while paying advance tax, if any, on your income other than salaries, to avoid a refund being due on your return.
I received Rs 10 lakh that my father bequeathed to me. I have invested that money in fixed deposits and will be receiving Rs 80,000 as interest income this year. As I am a housewife and do not have any other source of income, am I required to file tax returns for the interest income?
A tax return is to be mandatorily filed if a person’s income is above the basic exemption limit of Rs 2,00,000 (for financial year 2012-2013). As your taxable income is below the basic exemption limit, you are not required to file your tax return. However in case tax has been deducted while making payment of interest income, you should file your tax return to claim the TDS as refund.
My company has deputed me to Brazil for six months from January 2013 for a project I am working on. Apart from my salary, I will be getting additional remuneration but in Brazilian currency. How will this income (in foreign currency) be taxed? Will I be taxed according to Indian or Brazilian laws?
The taxability in India, of your remuneration received in Brazil, will depend upon your residential status in India. If your residential status is resident and ordinarily resident (as defined in the Income Tax Act, 1961) then your Brazilian salary will be taxable in India. In case you also pay tax in Brazil, you may be eligible to claim a foreign tax credit for such Brazilian taxes in your India tax return, subject to prescribed conditions. If you are a non-resident in India, the remuneration received in Brazil for your services rendered in Brazil will not be taxable in India.
As far as taxation in Brazil is concerned, you will have to refer to a Brazilian tax consultant.
The views expressed are writer’s own.
Today, Homi Mistry, tax partner at Deloitte, Haskins & Sells, answers your questions
