Married daughter is considered as members of HUF
As per section 80(C), life insurance premia paid by a Hindu Undivided Family on life of any member of the family qualifies for deduction. Whether premium paid on the life policies of married female member (daughter) qualify for deduction under section 80C in computing the income of HUF ?
A married daughter is considered as members of the HUF as per the Hindu law. A deduction under 80C can be claimed on the payment of life insurance premium paid for the insurance policy of the married daughter.
Listed companies reward their share holders by issuing to them bonus redeemable preference shares and bonus redeemable non convertible debentures. Will any long-term capital gains be invoked at the time of redemption?
Redemption of preference shares and debentures are considered as a ‘transfer’ and results in capital gains. The taxability arising on the transfer of debentures and preference shares is as follows:
Preference shares: In case of the unlisted preference shares, the long term capital gains (LTCG) accruing to the shareholders shall be exempt as per the section 10(34A) of the Income-tax Act, 1961 (Act) read with section 115QA of the Act. Whereas LTCG arising on the transfer of the listed preference shares shall be taxed at 10% / 20% (taking into account indexation).
However, the short term capital gains (STCG) arising on the redemption of both listed and unlisted preference shares shall be taxed at the slab rate.
Debentures: LTCG shall be taxed at the of 20% in the case of redemption of unlisted debentures and 10% in the case redemption of listed debentures.
If a person of age 60 years having a property (godown) gains income from that property, how can he create ownership of two people?
—C K Chetan
There is no specific provision in the Income Tax Act, 1961 (Act) regarding the creation of deemed ownership of an immovable property. However, one possible way could be through the creation of a Private Trust by executing a Trust Deed, stating the beneficiaries therein. It will be useful only when major descendent is made beneficiary as the rental income earned by spouse or minor children would be clubbed in your hands.
The writer is partner, Nangia & Co LLP. Send your queries to email@example.com