I am 73 and get a pension. Interest on fixed deposits is Rs 54,000, savings bank interest Rs 48,000 and aggregate income is Rs 3,84,000. Will I get rebate of Rs 10,000 under Section 80TTA and under 87A?
You have not clarified for which year is this income. Assuming it is for FY 2017-18, you are eligible for a deduction of Rs 10,000 under Section 80 TTA against your interest income from saving bank account. Rebate under Section 87A is allowed only when total income does not exceed Rs 3,50,000. So you are not eligible for rebate under Section 87A. Now, assuming it is for FY18-19, senior citizens are allowed a deduction of Rs 50,000 against interest income from deposits in banks, hence, your total income in FY18-19 will be Rs 3,34,000. In this case, you will be eligible for rebate under Section 87A for Rs 2,500 or income tax payable on Rs 3,34,000, whichever is less.
An amount of Rs 3,442 deducted by a PSU bank towards TDS on interest paid on term deposits in FY16-17 has been disallowed by the assessing authority stating there is a mismatch. I am unable to file the rectification request on line. What should I do?
—S P Reddy
Generally, such cases arise when there is an error in the TDS returns filed by the deductor. We advise you to contact the bank to ensure that TDS return filed by them is correct and once that is ensured, you can approach the concerned income tax authority of your ward or circle with relevant documents so that the authority may rectify and close the issue at their end.
I am a senior citizen and get pension from annuities (LIC and HDFC Life). I receive Rs 1,700 pension from EPS 1995. Total income for FY17-18 is Rs 3,85,000. Can I claim standard deduction?
Standard deduction is not available for FY17-18 as it is allowed from FY18-19 onwards. Further, you will not be able to avail standard deduction of Rs 40,000 in FY 18-19 against pension from LIC & HDFC, because standard deduction is allowed against salary income. For EPS pension, there are divergent views as to whether this pension is income in the nature of salary as it is not from former employer or directly related to the employment relationship. It will also matter how you have treated this income in your ITR in the past. If you have considered it income from other sources and not salary, it will be difficult for you change this option.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to email@example.com