You Need To Pay Self-Assessment Tax If Tax Deducted From Your Salary Is Less Than Your Tax Liability

I had worked for two employers last year. Though both my employers had deducted tax on my salary income, I still need to pay some income tax. Can I directly file the e-return and send the cheque with ITR-V form to the centralised processing centre (CPC) for the tax amount payable by me?

Answer: It seems you did not furnish details of the salary received from your former employer to your present employer. That’s why both your employers have given you the benefit of basic exemption and deductions under Section 80C while deducting the income tax liability on your salary. This has resulted into additional tax liability now.

Ideally, you should have furnished the details of salary received from your first employer to your second employer for correct calculation of your tax liability. You cannot send a cheque to the CPC office for the extra tax payable. You will now have to pay tax due as self-assessment tax along with interest.

You can either pay this online or at any bank through challan No. ITNS 280 mentioning all the relevant details. Please be careful while filling up the relevant details in the challan, so that you get the credit for the same. You will also have to furnish the details of the taxes paid while filing your ITR online. Wait for a few days after filing the self-assessment tax, so that the details get automatically captured in your income tax return (ITR).

My father has gifted me Rs. 10 lakh this current year. Do I have to show this amount in my ITR? If so, where should I mention it in the ITR?

Answer: Under the Gift Tax Act, 1958, which was abolished long ago, the donor was required to pay tax on the gifts made during the year. Now the responsibility to pay tax on gifts has been shifted from the donor to the recipient under Section 56(2)(x) of the Income-tax Act, 1961.

Under Section 56(2)(x), the recipient has to pay tax in case the aggregate of all gifts received during a year exceeds Rs. 50,000. However, gifts received from certain specified relatives are outside the scope of this provision and are not treated as income.

The relationship of parents and children is covered under the definition of relatives. Thus, the gift of Rs. 10 lakh you received from your father will not be considered as income, and therefore, you are not required to disclose it in your ITR either.

I have booked a flat for which I have paid Rs 30 lakh to the builder last one year. I also deducted tax at source (TDS) at the rate of 1 per cent on the amount paid. The TDS is reflecting in my Form 26AS. In which column of the income tax return form (ITR-2), should I mention the TDS and the payment I made to the builder?

Answer: Under the provisions of income tax laws, a buyer is required to deduct tax at the rate of 1 per cent from the payment made to the seller if the value of the property exceeds Rs. 50 lakh. In this case, the builder will get the credit against his tax liability for the tax you deducted at source (TDS) at 1 per

cent on the amount you paid to the builder towards purchase of the property. You need not show the same in your income tax return as you will not get any credit for the tax deducted (TDS) and deposited by you. You should recover the TDS from the payments to be made to the builder. You are not required to furnish the details of the payments made to the builder in your ITR.

Balwant Jain is a tax and investment expert

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