| I have become an NRI recently. Before moving out of the country, I made some investments in the Indian stock market. I am still holding on to these shares. Can I continue holding them without violating the Indian law? |
Subir Sil, Shanghai |
|
| |
| You can continue to hold these shares as the Reserve Bank of India has granted permission to companies to enter overseas addresses of shareholders in their books. However, you will have to provide an undertaking to the companies that you will not seek repatriation of any income or sale proceeds of the securities. |
|
| |
|
| |
| Loan ranger |
| I had taken a home loan in 1986 against which I had been claiming tax benefits. In January this year, I took a second home loan for a flat under construction. Can I claim tax benefits on both the loans under the current income tax rules? |
B. Paul, by e-mail |
|
| |
| You can claim tax benefits on housing loans up to a specified limit. Till the last financial year this limit was Rs 1,50,000 per annum for interest payment and annual repayment of Rs 20,000 under section 88. However, once the finance bill for the current financial year is passed, payment of housing loan up to Rs 1 lakh shall be eligible for deduction under a new section 80C. No changes have been made in the benefit for interest payment. If your total repayment amount exceeds these limits, you will not be able to claim the benefit for the exceeding amount. |
|
| |
|
| |
| Play by the rules |
| My service rule prevents me from making any speculative investments. Do investments in shares and derivative instruments through stock exchanges classify under the category of speculative investment and will I be allowed to invest in them? |
Sanjib Chaki, by e-mail |
|
| |
| vestment in shares is not considered as speculation. Also, in the recent budget proposals, investment in futures and options has also been put outside the purview of speculative investments. Thus, unless, there are specific instructions from your employer, which forbids you to invest in shares and derivatives instruments, you might be allowed to invest in these instruments. |
| |
|
| |
|
| |
| |
| If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |
