| I have a post office MIS account, which would mature in September 2006. Can I foreclose the account? |
Prithwish Guha, Jamshedpur |
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| You may close the MIS account only after one year from the date of opening. However, there is a penalty of 5 per cent on the deposited amount if it is withdrawn before three years. Premature withdrawal after three years will not attract any penalty, but the 10 per cent bonus will be scrapped. |
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| Safe avenues |
| I am 71 years old. I will receive some money in the near future. Can you suggest a suitable and secure investment option? I invest in pension plans worth Rs 20,000 per annum in the name of my son. Can I claim income tax rebate? |
Sankar Prasad Banerjee, Howrah |
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| For secured returns the options available are National Savings Certificate, 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. |
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| Wife’s worries |
| I am a housewife and my husband is a salaried professional. Is it mandatory for me to have a PAN? Do I have to pay any tax on the insurance amount received on his death and on the property, which I inherit from him? |
Bhavna Kaur, Calcutta |
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| It is mandatory for any person who has taxable income and files income tax returns, to have a PAN. Moreover, if you have income from interest on bank deposits or other investments, and the interest amount exceeds Rs 2,500, TDS will be deducted from the interest amount. To avoid the deduction of TDS and to submit Form 15H, you need to have a PAN. |
| You do not have to pay any tax on the insurance amount received or to inherit any property. Subsequently, you will have to pay appropriate taxes to use the property. |
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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. |
