Today we will discuss some of the most common but major queries related to Income Tax Return filing and TDS paid. We will be looking at three different questions that further resemble and solve the queries of other taxpayers also. These three problems will solve the tax filing and TDS related problems like:
- What is the benchmarked amount set by the Income Tax Department for house rent after which the TDS is payable?
- What to do after getting a Notice under Section 131, if you have not shown or forgot to mention a major monetary transaction in an ITR filing of a particular fiscal year?
- How to calculate the tax payable on interest earned from Post Office Monthly Income Scheme (MIS)?
Income Tax Queries
Benchmarked Amount Set By Income Tax Department For House Rent Above Which The TDS Is Payable:
With effect from June 1, 2017, according to Section 194-IB, TDS at a 5 per cent rate is deductible if an individual or HUF is paying a monthly rent of more than ₹50,000.
When You Forgot To Mention A Major Monetary Transaction In An ITR Filing Of A Particular FY
An individual receives a notice under section 131 when the assessing officer surmises that a taxpayer has concealed or is concealing any source of his income. A gift from a relative does not result in any kind of taxation as per Income Tax point of view. So the taxation is exempted from the side of the receiver. However, this transaction has to be shown as exempt income in Schedule EI of the ITR form. If you have not done so, you will receive a notice under section 131. Now, if you already have received a notice then just send all the related documents before the given deadline and coordinate with tax authorities.
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Calculating Tax Payable On Interest Earned From Post Office Monthly Income Scheme (MIS)
If interest income has been generated on joint accounts then from both primary and secondary account holders the tax is payable. Post Office MIS attracts no TDS deductions, however in reported ‘Schedule OS’ interest earned is taxable. Under Section 80TTA, for an amount up to ₹10,000 deductions can be claimed on interest earned on the savings account with the post office. The limit is up to ₹50,000 for the elders, and deductions are claimed under ITR filing.
