I have an annual income of Rs 24 lakh from multiple sources. I am a consultant. My auditor, while computing, showed the income as Rs. 24 lakh, but after deductions shown towards expenditure, assessed the taxable income at Rs 12 lakh and claimed refund for some of the TDS and I got it. However, I would like to know whether I can mention my annual income as Rs 24 lakh or Rs 12 lakh while applying for a credit card or any loan?
-- David Raju, Mumbai
It seems that you are not maintaining the book of accounts and hence, your auditor has offered your taxation on presumptive basis at 50 per cent of the income, wherein your business expenditure has been presumptively taken as Rs 12 lakhs and balance Rs 12 lakhs as your income. That is the reason the taxable income has been assessed at Rs 12 lakhs, which is your personal income part. If you go in for a credit card or a loan, this personal income of Rs 12 lakhs is what the bank will consider. In case you wish to go in for a business loan, you would have to maintain the book of accounts which can even be made now back-dated based on your bank account statements, the banks would then be more favourable to give you the business loan or credit card.
I had done fixed deposit of Rs 2 lakh in IL&FS a few years ago, expecting a higher return on investment compared to an FD in bank deposit. Now, the company is bleeding. If Rs 1 lakh crore is huge for IL&FS, given my financial situation, the Rs 2 lakh I invested too levies an equivalent burden on me. What do you advise now? Do I have any options to encash my deposit?
-- Madhusudhan, Hyderabad
As the company IL&FS, in which you had invested your money, has defaulted, you will not be able to encash your invested amount right now. However, since IL&FS is a quasi-sovereign entity with organisations such as LIC and SBI having a stake in it, we are confident that the matter will be resolved in due course of time. The government is hopeful of resolving the matter in the next 6-9 months and has also set up a new board for the company. The new board will come out with a resolution plan within the next few days. Hence, you may have to wait for maturity amounts from FD for few more months.