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Desperate for clever ideas - huge interest income - tax fili

Rajes (Senior Individual) (29 Points)

28 October 2015

Is any expert can help with some good ideas; in submiting valid leads.

My cousin got an income of 14 laks via Bank interest last year. Now she got a letter from Income tax for the first time; to do filing..

Any boday can help with claimable leads... She has not worked; she was 59 years as at last year. with one house in Bangalore; but not living in that house. Rather living with her son.

Any good ideas would be much appreciated.

Thanks,

Raj

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7 Replies

raghavan (self) (611 Points)
Replied 28 October 2015

Give details. She cannot receive int 14 lakhs without tds unless it is previous approved by her jurisdiction AO. Further she shoud claim refund after showing all income and tax details. She cannot give 15g as taxable income is more than basic exemption.explain for getting suggestion in this forum

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Rajes (Senior Individual) (29 Points)
Replied 28 October 2015

Hi Raghavan,

15g was not given. TDS 10% was already collected. After that TDS deduction; it seems that she still have to pay more than 1 lak as income tax.....

She is an individual, has house in Bangalore, but it is rented out.... Also there is some agricultural land... she was 59 years at that Financial year.... Any good leads to help...

Dilip (chief Accounts Officer) (79 Points)
Replied 28 October 2015

You will have to compile the income/expense statement by adding the amounts of gross interest received + rent received less expenses towards repairs, maintenance, property taxes, interest on housing loan. Further you can save taxes by investing into tax saving deposits, bonds, insurance, medical expenses etc.

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 29 October 2015

If demand is raised then tax liablity has to be met. Kindly check whether all deductions under 80 c to 80 d is claimed and expenses relating to earning of interest is claimed. There is no provision per se to reduce the whole of 1 lakh demand. Kindly act in accordance with notices for further consequences and claim any deductions not claimed earlier. If you act late you ll have to pay interest on demand also. There is no savings which i help with, with the info provided.

Miss Rinkal (Student) (1309 Points)
Replied 29 October 2015

I agree with Karthik completely. The income of each financial year needs to calculated. Consider the necessary deductions available andile the returns immediately before it is too late. Needless to say if there is any tax liability for that years as well, pay that also with interest. Else penalties for that will attract.