By Chirag Nangia
I receive annuity installment of `6,628 per month from my company’s employee group superannuation scheme through LIC. I am told that as per Section 10(13), the amount received from an approved superannuation fund is wholly exempt from income tax. If so, can I get a refund on the tax I have paid for last 10 years on this amount?
—P Gohil
Section 10(13) grants exemption from tax in case any payment is received from an approved superannuation fund by an employee in lieu of or in commutation of an annuity on his retirement. However, annuity received from superannuation fund of LIC is taxable under head ‘salary’. Thus, you are right to disclose the said taxable income in form of monthly annuity instalment.
If a mother wants to gift property to son, will it attract stamp duty tax?
—Jai
Gifts made to relatives are not taxable in the hands of the recipient under the Income Tax Act. However, while gifting immovable property, a gift deed has to be registered and hence stamp duty has to paid. There is no exemption from stamp duty in case of a gift, unlike the income tax law. Stamp duty depends on the value of consideration and varies by state.
I received an arrear amount of `2.2 lakh in 2019-20 and it includes HRA arrear also. Similarly, I received `50,000 in 2017-18 and `1.5 lakh in 2018-19. Will I have to file total arrear amount?
— Bharathi Dasan
It is advisable to include the entire arrears including the HRA amount.
My family consists of myself, wife and a daughter. My daughter is married and has a son. I have built a house on revenue land that is likely to get regularised. Should I make a registered / unregistered will?
— K Prabhakar
Making a will helps ensure one’s property devolves as desired and heirs receive their fair shares. It is advisable to get the will registered. With a legal declaration of the intention, one can ensure that wealth is passed on as desired and complications can be avoided. In case no will is made, the law of succession shall apply. From income tax perspective if property is passed on by will or succession, it is not a taxable transfer.
The writer is director, Nangia Andersen Consulting. Send your queries to fepersonalfinance@expressindia.com
