Tax Talk
For a let out property, actual interest payable is allowed as deduction.
April 20, 2013:
I had purchased a house by availing a bank loan. The property is let out as I live in a different city. I am claiming loss on house property after taking rent into consideration.
Now, my wife wants to purchase a house in her name by availing a bank loan for which I am a co-obligant. She wants to take Rs 25 lakh loan. As this property is also in a different city, we are planning to let out the same. What is the limit for interest on this loan after taking rent into consideration according to the financial year 2013-14 budget proposal?
— Srihari
According to section 24 of the Income-tax Act, 1961, in case of a let out property, actual interest payable is allowed as a deduction while computing income under the head 'House Property'. In respect of the additional deduction u/s 80EE proposed in the Budget proposal for FY 2013-14 for interest on home loan, one of the conditions is that it is available for the house which is self occupied property. Hence, the deduction under this section shall not be available to your wife as she intends to let out the new house.
For the last three years (FY 2009-10, FY 2010-11 and FY 2011-12), I have been filing I-T returns and paying income tax as applicable. Recently, I came to know that those earning income from let out property can avail standard deduction of 30 per cent, which I have not claimed in my tax returns. Is there any way I can file revised I-T return for last three years and get refund for the extra tax I had paid by not claiming the standard deduction of 30 per cent?
— Col P M Singh
According to section 139(5) of the Income-tax Act, 1961, an assessee may furnish a revised return, if he discovers any omission or any wrong statement in the original tax return, filed by him within the due date of filing of the original return. The due date of filing such revised return is one year from the end of the relevant assessment year or before the completion of the assessment of the original return, whichever is earlier. Thus, in your case you may revise your original tax return for the FY 2011-12 to claim the standard deduction of 30 per cent while computing income under the head 'House Property'. The due date of filing the revised return for FY 2011-12 is March 31, 2014, provided the assessment of the original return is not completed in the meantime. Please note that you cannot revise your tax returns for FY 2009-10 and FY 2010-11 as the due dates of filing the revised returns were March 31, 2012 and March 31, 2013, respectively.
'No instances', says HDFC Bank
Mumbai, April 24:
Private sector lender HDFC Bank has ruled out money laundering in the transactions allegedly captured in the expose by online magazine Cobrapost.
"Clearly, all this (internal investigation) has shown no instances of money-laundering transactions as charged by Cobrapost," said Paresh Sukthankar, Executive Director, HDFC Bank.
Following the money-laundering allegations by Cobrapost, the second largest private lender had suspended 25 employees and appointed Deloitte for conducting internal forensic audit.
"The investigation is being undertaken in about 25 branches and transactions in the past 12 months are being reviewed," he said.
Further, the HDFC Bank ED said, the bank has its internal timeline for the investigations. "Hopefully, the investigation will be over in a few weeks. Till the findings are out, the employees will remain suspended."
RBI looking at changes in 'know your customer' norms
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K. C. Chakrabarty, Deputy Governor, RBI. -
K. C. Chakrabarty, Deputy Governor, RBI.
No transactional evidence of money laundering, says K. C. Chakrabarty
Mumbai, April 23:
The Reserve Bank of India has clarified that there is no transactional evidence of money laundering found in the top three private sector banks (ICICI Bank, HDFC Bank and Axis bank) involved in the Cobrapost expose.
"In none of their branches there was a case of money laundering... No transaction has taken place," said K.C. Chakrabarty, Deputy Governor, RBI.
He also said that the regulator was examining changing the way business is done, including KYC (know your customer) norms.
The Deputy Governor added that the system was good. "There is no problem at a transactional level, some aberrations will always take place.There is a need to look into these issues," he said.
If necessary, as and when needed, banks and the RBI will take corrective measures, Chakrabarty added.
The RBI is undertaking thematic review in 34 other banks following the Cobrapost expose.
Falling commodity prices
On the recent fall in the gold and other commodity prices, Chakrabarty said that this will help bring down the inflation levels.
"Falling commodity prices is good for sustainability. If commodity prices come down, inflation will come down. So, we are happy about that," he said.
Will Tinymail on phone make mail IDs redundant?
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Left to right (Standing)- Aju Elias, Arun T.K., Sujith G., Linto C, (Sitting) - Abhilash J.P., Sharan Thampi and Tejas Kumar -
Thiruvananthapuram, April 23:
Mobile = Mail ID, if not more. This is what Tinymail, flagship application from HedCET Innovations, a startup from College of Engineering-Thiruvananthapuram (CET), is proposing.
Tinymail seeks to bring mail functions to a mobile number, and has been released on the Google Playstore.
REDUNDANT IDS
It has already hit 100 downloads, say Sharan Thampi and Tejas Kumar, who respectively head business development and operations at HedCET.
Today there are two methods of communication, the mobile number and the email ID, the duo explained to Business Line.
The mobile number has a lot of functionalities while the mail ID is used to send mails and sign up for online products/services.
"If we are able to bring this functionality to the mobile number, we are in effect making email IDs redundant. We are thus bringing online communications to the single focal point of a mobile number."
FOR ALL SITUATIONS
Hence the Tinymail=Mail ID proposition, Thampi and Kumar said. "In situations where you need to save time and send out a communication quickly, Tinymail wins because it's very closely intertwined with the native contacts page on your mobile device."
Thampi said: "It especially works for them because as long as you have your emergency numbers (police/ambulance) stored on your phone, a message can be sent out at the touch of a button. It is guaranteed to reach its destination (unlike SMS, which depends on mobile balance, network coverage etc)."
Does it work equally well on 2G/GPRS/3G? What about those who can't afford high-end handsets?
As the speed of the Internet connection increases, the application will work faster. It works well on 2G/GPRS/3G connections.
ANDROID, FOR NOW
At present, it is available only on the Android OS, which means only the Android smartphone galaxy can use the application.
Moving forward, the application can easily be brought to iOS, Blackberry, Windows and the Symbian/Java phones - which make up 99 per cent of handsets.
Tinymail is a free application, with zero advertisements or other disturbances.
Inspiration for the young entrepreneurs comes from MobME Wireless, a mobile value-added services player, the first startup from the CET premises, which is now seeking a public listing.
CAG finds irregularities in rural job scheme
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Beneficiaries of the MNREGA at Unjini village in Ariyalur district expressing their grievances under the scheme. (file photo) -- R. M. Rajarathinam -
THE HINDU
Work worth over Rs 4,000 crore still incomplete
New Delhi, April 23:
The Comptroller and Auditor General (CAG) has recommended a model format of accounts for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
In a report tabled in Parliament on Tuesday, the Government auditor asked the Rural Development Ministry to comply with rules and guidelines while releasing funds for the scheme to ensure transparency.
The auditor said it had noticed non-payment of unemployment allowance and non-maintenance of essential records in all States during the audit. The report said job cards were not issued to 12,455 households in six States. "There were several cases of delayed payment of wages, for which no compensation was paid," the report added.
The report said irregularities were noticed in work undertaken under scheme. "Works of Rs 2,252.43 crore, which were undertaken under the scheme, were not permissible. It was seen that 7,69,575 works amounting to Rs 4,070.76 crore were incomplete even after one to five years. It was also noted that expenditure on works amounting to Rs 6,547.35 crore did not result in creation of durable assets," the report concluded, and added that cases of diversion of funds for other uses were also seen in a number of States.
The CAG report said in 14 States and one Union Territory, 129.22 lakh works amounting to Rs 1,26,961.11 crore were approved in the annual plans. "But only 38.65 lakh works (30 per cent of planned works) amounting to Rs 27,792.13 crore were implemented during the audit period, indicating significant inefficiencies in implementation of annual plans," the report said.
The second performance audit of the United Progressive Alliance's flagship scheme was carried out at the insistence of the Rural Development Minister, Jairam Ramesh. The CAG examined implementation of the scheme in 3,848 gram panchayats in 28 States and four Union Territories.
The auditor said an analysis of releases made showed that three States — Bihar, Maharashtra and Uttar Pradesh — had 46 per cent of the rural poor, but accounted for only 20 per cent of the total funds released under the scheme. "This would indicate that the poorest of poor were not fully able to exercise their rights under the MGNREGA," it added.
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