| Is the pension income received from Varishtha Pension Bima Yojana taxable or taxfree? |
Swapan Roy, Barasat |
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| The pension income received from Varishtha Pension Bima Yojana has to be included under the head of income from other sources and tax has to be calculated accordingly. If your annual income, including the pension, exceeds the threshold, tax has to be at the rate corresponding to your income slab. |
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| One by six |
| I am 70 years old and my annual income is less than Rs 1,85,000. I inherited a flat and a telephone connection from my parents. My wife also has no taxable income. We both filed our respective income tax returns for the assessment year 2006-07. Will we have to file income tax return for the assessment year 2007-08? |
Ronodeb Goho, Calcutta |
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| The six-by-one criterion for filing income tax return has been withdrawn with effect from financial year 2006-07. So you don't have to file income tax return for the current financial year (assessment year 2007-08). |
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| Form 15H |
| We are residing under the jurisdiction of Serampore Head Post Office, which has asked us to furnish Form 15H though our total interest income from the Senior Citizen Savings Scheme account with the post office is less than Rs 5,000 per annum. Do we have to submit Form 15H? |
Parimal Das, Sheoraphuli |
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| The minimum limit of Rs 5,000 is with reference to the total payment during a financial year, but tax is required to be deducted at the time of “credit of such income to the account of the payee or at the time of payment in cash, or by issue of cheque or draft or by any other mode, whichever is earlier”. Therefore, the post office should have Form 15H at the time of credit. Unfortunately, not all post offices or banks advise their customers to submit Form 15H before such credit or payment. If such declaration is obtained, it should hold good for the entire year, so as to cover the interest payable on different deposits during the year. Form 15H filed before the first payment should cover all payments during the financial year. |
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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 700001. |
