Monday, November 13, 2006
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IN TODAY'S PAPER
Since 1st March, 1999
Short & long of it
I am 67 years old and a pensioner. Can I set off short-term capital gains against short-term capital loss arising out of share transfer' If my annual income, including short-term capital gains, is less than Rs 1,85,000, do I need to pay any tax' Are long-term capital gains from transfer of mutual funds and shares tax-free'
Ajou Kumar Ghosal, Calcutta
Short-term capital gains arising out of share transaction can be set off against short-term capital loss. If your annual income, including the short-term capital gains, is less than the threshold income limit for tax purposes, i.e., Rs 1,85,000, you donít have to pay any tax. Long-term capital gains from sale of only diversified equity schemes of mutual funds are tax-free. You donít have to pay any tax on capital gains by selling shares after holding them for more than 12 months.
I retired from central government service in January this year. While in service, I had been filing my income tax return in Saral Form alongwith Form 16 issued by my employer. For the current financial year, my pension and interest income from Senior Citizen Savings Scheme will be taxable. Where should I deposit my income tax returns'
Ranjan Suhas Chodhury, Behala
You will have to submit the tax at the ward or circle of income tax office where your earlier income tax returns were filed. The ward or the circle number would be mentioned in the receipt copy of the Saral Form.
Ifs and buts
I am 70 years old and my wife is 64 years. In 2001, we jointly purchased Kisan Vikas Patra (KVP) which will mature in July-August 2007. The accumulated interest amount would be around Rs 3 lakh. My annual income is below Rs 1,85,000. What will be the tax incidence'
J. Biswas, Durgapur
KVP is not subject to tax deducted at source. So, you will have to pay tax. But since it is kept in a joint account, the tax liability will be on both of you in the ratio of 50:50. However, if the total annual income of each one of you is below the threshold limits, you may not have to pay any tax at all.
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