Do you have a personal income tax question?

Mihir TannaAssociate Director, SK Patodia & Associates (external link), a chartered accountant that offers consultancy, audit and tax services, to answer your questions.

Please send your questions to with the subject line Ask Mihir.

Somaskandan Hariharan: I would like you to clarify the following point.

I am taking a home loan with an amount of Rs 10 lakh (The house I am currently living in. Taken during 2017). I made a profit by selling other properties around Rs 80 lakh. Can I save myself from paying capital gains tax by paying off a home loan of Rs 10 lakh?

Mihir Tanna: Home loan repayment can be reduced in two installments. First payment of principal can be claimed u/s 80C (up to 1.5 lakh) and second payment of interest which can be claimed as deduction. Deduction of interest is allowed with certain limits depending on whether the property is used for occupation or rented out.

In addition, you can save on capital gains tax by investing in other real estate or you can acquire specified bonds, if you fulfill other specified conditions.

Bhalwant Singh Raju: Re. Correction in Form 67 for AY 2019-20 & AY 2020-21 and submission of correction application. I mistakenly claimed tax relief under section 91, not section 90/90A under DTAA with Canada, which was not granted by the IT Department and the assessment made under 143 (1).
It was a simple typo on my part.

Can the error be rectified by revising Form 67 and submitting along with rectification request to IT Dept? Please suggest exit.

Mihir Tanna: Errors found in records can be corrected by the Income Tax Department and errors that require discussion, extension, investigation, etc. cannot be corrected. Therefore, if you can specify in the application that section 91 of the Income Tax Act 1961 provides the sole Relief which states that when there is no DTAA between two countries you have some income (which is double taxed) from Canada which is a signatory to India. DTAA and section 91 are not applicable in your case. Therefore, you can request the assessing officer that accidentally while filing Form 67, you have selected wrong section, as there is an error found in the record, check the revised Form 67 carefully and submit the rectification order u/s 154 of the Income Tax Act.

Sadruddin Khoja: I am a retired Govt. employees and receive pensions. I also earn interest from deposits, savings and Acc. Int. I am showing this income in my income tax return in Form ITR-1 SAHAJ. During the current financial year I received my PPF maturity amount deposited in the Post Office. Out of the money received, there is money given to my wife. He deposited the amount received from me as gift in SCSS A/C and earns interest on that amount.

I would like to know if the interest income from the money I gave should be included in the income and shown in the Tax Return. If so, where is it in which column?

I have to show the income so it’s included but I don’t see any place or column like that. In this, I have to declare that money Sr. No. B3 income from other sources with interest earned from Deposit etc.

Since the amount of interest earned by my husband is included in my income, should this amount be shown in the Tax Return of Income or otherwise? As it will be shown on his return, there will be a copy.

This information is wanted when I file my return and because the statement may not be available to me or my wife. I hope you will kindly guide me in this direction and oblige us.

Thanks in advance.

Mihir Tanna: If the property of the taxpayer is directly or indirectly transferred to his wife due to insufficient consideration, the proceeds from that property shall be in the hands of the executor. The taxpayer (taxpayer) should show such income in the Schedule SPI of the Income Tax Return that the taxpayer has filed for his income. It is not necessary to show the income on the spouse’s tax return.

Read more of Mihir Tanna’s answers here.

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