Since I get a rent of Rs 10,000 a month, will my PAN be quoted by my tenant when he files his IT returns?
– Dhiraj Singh
No. Your tenant is not required to quote your PAN in his income tax return. However, he will have to mandatorily provide your PAN to his employer in order to claim exemption of House Rent Allowance, where the rent is more than Rs 1 lakh per year.
I sold my property and the buyer of the house deducted 1% TDS. But the amount is not showing in my Form 26AS. What should I do?
It is the buyer of the immovable property (and not the seller) who is required to deduct taxes at 1% on the consideration paid to the seller, if the amount exceeds Rs 50 lakh. The buyer is required to remit the taxes by furnishing a challan-cum-statement in Form 26QB within seven days from the end of the month in which taxes are remitted. Further, the buyer is required to issue a TDS certificate in Form 16B within 15 days from the due date of remittance of taxes. The taxes deducted will appear in both the buyer’s and seller’s Form 26AS. The amount may not appear in the Form 26AS if the Form 26QB was not filed/ filed incorrectly. In such cases, the buyer may be approached to have the data corrected.
My father is a senior citizen and has a few fixed deposits in banks. Will he have to pay tax on the interest earned and will the interest be added with his pension amount to calculate tax liability?
— Aditi Sinha
In order to determine if your father should pay tax on his interest income, his total income should be first arrived at by considering all his sources of income (i.e., pension, interest on fixed deposits, savings bank interest, etc.). If the total income so arrived at after giving deductions for tax saving investments (such as PPF, LIC, etc.) made by him exceeds the basic exemption threshold of Rs 3,00,000 in case your father is above 60 years of age and Rs 5,00,000 if he is above 80 years of age), then he is required to pay taxes at prescribed rates on the taxable income (including pension and interest) and also file his income tax return.
The writer is tax partner & India mobility leader, EY. Send your queries to fepersonalfinance @expressindia.com