Monday, April 26, 2004
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IN TODAY'S PAPER
Since 1st March, 1999
Is it true that senior citizens above the age of 65 years are exempted from filing income tax returns'
K. C. Seth, Rishra
Whether or not a senior citizen, income tax return has to be filed by an individual if his total income computed after considering all deductions exceeds Rs 50,000.
I am 74 years old. I will receive some money in the near future. Can you suggest a suitable and secure investment option'
vest in pension plans in the name of my son and it amounts to Rs 20,000 per annum. Can I claim income tax rebate'
C. R. Gupta, Calcutta
For secured returns, the options available are National Savings Certificate, 6.5 per cent (tax-free) and 8 per cent RBI bonds, Kisan Vikas Patra, Post Office MIS or Time Deposit and LIC Varishtha Bima Yojana. Other options are company deposits of good credit rating, bank deposits and bonds issued by financial institutions. You should make a choice based on your desired rate of return and time period of investment. You can claim tax rebate for investments in pension plans up to Rs 10,000.
retirement, I received eight months’ salary as leave encashment and four months salary as half-pay leave encashment. How much tax exemption can I claim'
For government employees, total leave encashment is exempt from tax. For non-government employees, minimum of the following will be exempted: cash equivalent of leave salary for the period of earned leave subject to maximum of 30 days for each year of service or 10 months average salary or actual leave encashment received or Rs 3,00,000.
which income is the tax rebate under section 88 calculated' Is it deducted from income or from tax liability'
Tax rebate under section 88 is calculated on the gross total income (from all sources) — the income before allowing for deductions under section 80.
The amount calculated as tax rebate under section 88 is deducted from the tax liability, is calculated on the total income arrived at after allowing for deductions under section 80.
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