Ask us anything about Budget 2020

[Quicko]

@Whationesurs

seriously interested in getting an answer to that question too as i’m curious too. thanks in advance

@Curious-Investor

Hey @Quicko
I’ll be graduated last year from college. My parents paid for my fees. They used to transfer the money in my account, which I used to pay my college tuition with. The total amount would have around 10L. I have some trading profit (fno) along with salary >20Lakh in this year.

Assume, If I transfer that money back to their account(may or may not with some interest). So, can I show that 10 Lakh as Loan and claim as a one-time deduction while paying tax?

@Curious-Investor @Whationesurs

1. Deduction u/s 80E is available on interest paid on Education Loan taken from Financial Institutes. But in your case, since the loan is taken from parents and you are repaying it back, you can not claim it u/s 80E.

2. FNO trading is considered as Business Income and expenses related to trading activities are allowed as deductions while filing ITR. However, a loan taken for payment of education fees is not allowed as deduction.

Hope this helps.

[Whationesurs]

thanks a lot for your answer it helps me with my recipes project. really appreciating that. i am wondering if i may dm you in case some other questions will appear? thanks again.

[Akarsh]

Hi,

I have a doubt.

I receive monthly allowance from my mother around 25,000 RS per month. I live away from home and most of this money goes to paying bills and my Mutual Fund SIPs. Last I checked this 25k was considered as a gift and also given that the tax on this 25k is already paid by my mother only then do I receive this amount as an allowance. Do I need to pay tax on this 25k per month?

Thanks.

[Quicko]

Hi @Akarsh

No, you do not need to pay tax on 25k since its not your income. But receipt from your mother.

[Akarsh]

One more question. Last year I used this allowance for bills and trading so I showed the remaining amount as proprietor’s capital this year I switched to MF SIPs should I still show the remaining amount as proprietor’s capital?

Thanks.

[Quicko]

@Akarsh

Yes, you can show the remaining as proprietors capital if it is used for trading business this year. You can DM us at [email protected] for any further queries. Hope this helps.