I earned some interest income from a post office savings bank account. Can I claim exemption under Section 10(15) as well as 80TTA against such an interest income?
? Deepak Suri
Under Section 10(15)(i), income by way of interest on a post office savings bank account is exempt from tax to an extent of R3,500 in the case of an individual account and R7,000 for a joint account. Thus, interest income beyond R3,500 or R7,000, as applicable, will be taxable and form part of the gross total income. Further, while computing the total income, deduction up to R10,000 will be available under Section 80TTA. Since the scope of both provisions is separate and independent, you can claim benefits under both Sections.
I am a risk management consultant and received certain fees from my clients who did not deduct TDS. Do I need to pay advance tax?
? Vipul Shetty
As per Section 209, the tax deductible or collectible will not be reduced from the amount of tax calculated on the estimated income to determine the advance tax payable, if the payer has paid or credited the income without deduction or the amount is received or debited by the recipient without collection of tax. Therefore, as you have received fees (on which the tax was deductible) without deduction, you will be liable for payment of advance tax in respect of income that has been received without deduction.
I sold my residential house and earned a long-term capital gain of R15 lakh in July. I wish to claim exemption from capital gains tax under Sec 54. What is the time limit to purchase another residential house?
? Satinder Chauhan
As per the provisions of Section 54, you can purchase a residential house within two years from the date of transfer. If you wish to construct a residential house, the time limit is three years after the date of transfer. In case, you are not able to utilise the amount of capital gains for purchase or construction of the new house before the date of furnishing of the return of income, you can deposit it under the Capital Gains Deposit Accounts
Scheme. The amount so deposited should be utilised for the purchase or construction with the period mentioned above.
I work with a private organisation. I am planning my vacation for this year to Mauritius with my wife and daughter. The trip is expected to cost me about R1 lakh, including travelling costs, and I am entitled to LTA of R75,000. How much amount can I claim as exemption and what are the documents required to be submitted?
? S Ramamurthy
The leave travel exemption is subject to expenses actually incurred towards travel in India. As such, you will not be able to claim LTA exemption, as you will be traveling outside India.
Can I gift certain bonds owned by me to my wife? She does not have any other income; so, will the interest income on these bonds exempt in her hands?
? PS Paul
Any sum of money received without consideration (i.e. gifts) in excess of R50,000 in a year by an individual or HUF is liable to income tax under Section 56(2)(vi) of the Income Tax Act. However, exemption is given for gifts received from spouse. As such, the gift of bonds by you will not be taxed in the hands of your wife. However, income accruing on the bonds, i.e., interest will be clubbed with your income for tax under Section 64(1)(iv).
The writer is founder of RSM Astute Consulting Group
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