VB Prabhu Verlekar
Q. I have won Rs 1 lakh in a Housie game under option, Jaldi Five at a church feast to celebrate Easter. Is this amount liable for income tax?
Pascoala J Fernendes, Navelim.
Yes. The Rs. 1 lakh prize won in a “Housie” (Tambola) game is liable for tax u/s 115BB of Income Tax Act which cover games of chances, playing cards, housie games etc. at flat tax rate of 30% plus cess which works out to Rs 31,200 on Rs 1 lakh irrespective of your total income slab. You cannot claim any deductions or exemptions against this income. The entire Rs 1 lakh is taxable even if you don’t have any other income.
Q. Can I file tax return without payment of balance tax due to interest on delayed return?
Manohar S Arolkar, Siolim.
Under Section 139 of Income Tax Act, the ITR is considered valid and properly filed only when all taxes due are paid before filing. Besides, income e-filing portal will issue notice of defective return and return will be considered invalid if tax is not paid and corrected return is not filed. The department will issue notice of demand if self-assessment tax is not fully paid and also interest will be payable for delay.
Q. I have a government licensed shack at Colva beach where I serve food and all types of beverages. Almost all transactions are in cash. Am I liable for income tax and the newly introduced GST? How to comply with these formalities? I am not educated.
Anthony J Fernandes, Colva.
You are liable for income tax if your total taxable income from all sources exceeds Rs 12 lakhs for FY 2025-26. However, you are required to file income tax return if income exceeds Rs. 4,00,000 under new regime. Presuming you are Goan and married under Portuguese Civil Code as the income can be split equally between you and your wife u/s 5A of Income Tax Act the limit is Rs 12 lakhs for each spouse.
For calculating income from your shack business, you should maintain a daily register of collection from sale of food and non-alcoholic drinks and a separate register for alcoholic drinks. You have got option to calculate profit on presumptive basis at 8% of the turnover presuming annual turnover is less than 2 crores. You will be liable to GST if the turnover from restaurant services crosses Rs. 20 lakhs and GST rate on the same is 5%. For alcoholic drinks you are required to pay VAT as the same is excluded from GST. You can opt for composition scheme by paying tax @ 1% of the turnover without claiming input tax credit. It is advisable for you to approach a tax consultant to properly understand and comply with necessary formalities.
Q. I had purchased a ready flat in Mumbai for residential purposes costing Rs 50 lakhs in March, 2010. I’m negotiating to sell the same in June 2025 for Rs 3 crores and buy two residential flats in Goa, where I now reside after retirement. Flats will be willed to my two sons. What are the tax implications?
Wilson Jerome Braganza, Dona Paula
Since you own the flat for more than 2 years from date of purchase, profit or gains arising from sale of flat will be treated as long term capital gains. After considering indexation of cost with base year as 01-04-2001, you are liable for tax @ 20% on long term capital gain or @ 12.5% without considering indexation, whichever is lower. This tax can be avoided if amount of long term capital gains is invested u/s 54 for purchase of another residential house or two residential houses if the capital gain does not exceed Rs. 2 crores within a period of two years. Please note that you have to retain newly purchased house / houses for three years.
Q. Our company employs staff in different grades and positions. Wherever applicable, we deduct tax at source from employees’ salaries. Is there any need for us to issue certificate in Form 16 to employees whose TDS are not made?
Rakesh S Sharma, Verna.
There is no need for employer to issue certificate in Form No 16 to employees where TDS is not required to be made from the salaries. You can issue salary statement on request.
Q. I am working for a school as a headmaster. I have now received arrears of salaries for past 6 years on account of change in grade. Can the school authorities consider relief u/s 89 for the purpose of calculating TDS on salary for current year?
Joseph S Dias, Quepem.
Yes, if the person is Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer to calculate TDS.
Q. I am a salaried employee. I have taken housing loan for my residential flat. Can my employer consider interest on housing loan for calculating my TDS?
Vishwas J Shastri, Margao.
Yes, but only to the extent of Rs. 2 lakh provided you have opted for the old regime. However, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary. In this connection, please refer to Annual Circulars issued by CBDT regarding TDS on Salaries.
Q. My husband was working for police department. I have received Rs 10 lakh as ex- gratia payment from government for his death on duty. How this amount will be treated for the purpose of income tax?
Sushila M Patil, Valpoi.
If a person or his heir receives ex-gratia from Central govt/state govt/ local authority/Public Sector Undertaking due to injury to the person/death while on duty such ex-gratia payment will not be taxable as per income tax law.
The writer is well established, senior practising chartered accountant with wide experience in taxation and finance. He is also a strategist in turn round management of institutions.
