Monday, August 15, 2005
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IN TODAY'S PAPER
Since 1st March, 1999
Fine on return
I have a PAN and had been submitting income tax returns regularly before I went abroad for more than a year with my husband leaving my job.
On our return, I got another job. During 2002-03 and 2003-04, I was employed for a very small part of each year and my annual income was far less than the taxable limit of Rs 50,000. Therefore, I did not submit my IT returns for both the years.
However, since my income exceeded Rs 50,000 during the last fiscal, I am submitting my returns. But, I am told that I will be penalised, as I had not submitted returns for the last two years. Is it correct'
Lakshmi Bijoy, Calcutta
Yes, it is correct. If you have PAN and have been submitting income tax returns, you are required to continue filing even though your income is not subject to tax.
I sold some shares on September 15 and 16, 2004. I held these shares for more than a year and was under the impression that the gain would be exempt. However, I have come to learn that there will be no exemption in respect of the gain since the securities transaction tax has not been offered on the sale of these shares. Kindly clarify.
Gautam Sharma, Calcutta
Exemption under long-term capital gains can be claimed if the sale of such equity shares has been made after the introduction of the securities transaction tax, that is on or after October 1, 2004. Since, in your case, the sale has taken place prior to that, no securities transaction tax would have been payable at the time of sale. Therefore, the exemption will not be available to you.
Life goes on
How does the nominee or legal heir make a death claim in case of life insurance'
Pratap Singh, Ranchi
Nominee or the legal heir has to send the following documents to the life insurer ' an intimation of the death of the life assured, death certificate, completed claim forms and other forms as required by the company, the life policy and an identification of the nominee.
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