| I am a senior citizen. My total income, including pension and all other earnings, was Rs 1.76 lakh during 2004-05. I believe I am not required to pay any income tax on my total income as it is below the enhanced exemption limit granted for the assessment year 2005-2006. Am I correct? |
Chittaranjan Paul, by e-mail |
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| The enhanced exemption limit is applicable from financial year 2005-06 and assessment year 2006-07. Therefore, your income for fiscal 2004-05 was above the exemption limit. However, as it is not possible to determine whether you have any tax liability as there is no information on the rebates and deductions you are eligible for, we cannot mention whether you have to file returns or not. |
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| Foreign tour |
| Can you please clarify whether my planned foreign travel needs to be declared in the return even though the entire cost for travel is being met by my daughter who stays abroad? |
R. Murthy, Jamshedpur |
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| Foreign travel is a criteria for filing returns under the one by six scheme. If you are not required to file any return under the taxable income criteria, but had incurred expenditure on foreign travel, you are required to do so under the scheme. However, since your daughter shall pay for the expenses, you are exempted from that too. |
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| Fee factor |
| My son is pursuing MS in a government engineering college. He is earning through project work at the institute. Can I claim tax benefit for paying his tuition fees? |
N. Mukhopadhyay, Howrah |
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| You can claim tax benefit under section 80C for the tuition fees. However, any other fees such as development, donation and the like shall not be eligible for the rebate. |
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| Money order |
| My husband is working abroad, and wishes to send his earnings home. If his employer credits his NRE account in India directly after deducting the tax applicable in that country, will there be any tax implication on the money converted to rupees in India? |
Sujata Khan John, by e-mail |
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| Income accrued and received outside India and subsequently
transferred to India is not included in income tax. |
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| 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. |
