For NSC interest, pay quarterly advance tax or pay when filing ITR How do I pay tax on post office 5-year National Savings Certificates and will the post office deduct TDS?
The amount invested by you in post office 5-year National Savings Certificates is eligible for deduction under Section 80C and interest earned on such deposits is taxable under head ‘Income from other sources’. The payout is not subject to TDS, hence you will need to pay the tax either by paying quarterly advance tax installments, if applicable to you or at the time of filing your income tax return.
I have got about Rs 7 lakh form LIC as maturity amount. Will it be taxable?
The amount received as LIC maturity amount is exempt under Section 10(10D) of Income-tax Act. However, it must be noted that such sum shall be taxable if the premium payable for any the years during the term of the policy exceeds 10% of the actual capital sum assured. Actual capital sum assured refers to the minimum amount assured under the policy on the happening of the insured event at any time during the term of the policy.
I had sold my residential flat in Mumbai in Nov 2017 and got `15 lakh as capital gain, which was deposited in SBI in LTCG a/c before July 2018. Can I construct a house by using my LTCG amount on my parents’ plot?
Since the property on which construc-tion is to be done is not in your name as of now, you will not get LTCG exemption.
Can my NRI son transfer money to us from his NRO account? If yes, who will be liable for income tax if same invested in bank FDs?
Yes, your son can transfer money from his NRO Account to you. There is no tax liability at the time of transfer. However, when such funds are invested by you in bank FDs then interest earned on such amount shall be taxable in your hands.
I earn salary income and consultancy income. While filing ITR, can I claim depreciation for gadgets and vehicle?
You can claim depreciation on assets used for providing consultancy services. If gadgets and vehicles are used in rendering consultancy services then depreciation on those assets can be claimed while filing income tax return.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to