 "Taxation: Kuldip Kumar")
Kuldip Kumar partner and leader, personal tax, PwC India, answers your questions
I want to apply for a joint home loan with my father. The bank wants income tax returns of the past three years. However, I will be filing taxes for the first time this year. What should I do for the previous returns?
Explain to the bank that your total income was less than the basic threshold limit and you were not required to file a return for those years. However, prepare a statement of income for the relevant past two previous years and give it to the bank. Also keep the proof of such income ready, as they might like to verify it.
While filing tax returns, do I have to show long-term capital gains from equity or mutual funds? Can I set off losses against interest income from fixed deposit(FD)?
Any long-term capital gains from the sale of an equity share or units of an equity- oriented mutual fund is exempt from tax provided the securities transaction tax (STT) has been paid. However, at the time of filing the return , such exempt gain must be reported under Schedule EI of the return form. But long term capital gains from the sale of units of debt oriented mutual fund is taxable and hence, must be reported under Schedule CG of the return form. Long- term capital losses can be set off only against long-term capital gain, banned by the tax laws. Hence, you will not be able to set off the long term capital loss against interest income from FD. Also, long-term capital gains from shares or equity oriented MFs is not taxable. So, long-term capital loss cannot be set off.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
