| My son has earned a salary of Rs 80,000 in India from April to November last year. From December, he is in Iran on a contract service with a multinational company. His current salary is credited to the non-resident extension savings account in a bank in India. Will he have to submit income tax return for the assessment year 2007-08 on his income in India? |
B.N. Poddar, Calcutta |
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| Since your son’s total annual income in India is less than Rs 1 lakh, he won’t have to submit income tax return. However, it should be remembered that filing income tax return for those having income less than Rs 1 lakh is voluntary. He can file the return for his income in India for the period mentioned just to remain clean from his side. I believe, the salary he is receiving abroad and getting credited to the bank account here is tax deducted. |
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| Ulip maturity |
| I had invested Rs 6,000 in a unit-linked insurance plan of UTI for a period of 10 years. On maturity I received Rs 1,19,000 in January 2007. What will be my tax liability on the maturity amount? Do I have to pay any capital gains tax? |
Sanjana Ghosh, Calcutta |
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| The unit-linked insurance plan of UTI enjoys the tax benefits under section 80 C as well as insurance coverage. The withdrawals on maturity from this plan are not taxed in the hands of the recipients. |
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| Share transfer |
| If I transfer some shares from one demat account to another, both in my name, will there be any charges. Do I have to close the demat account from where I want to transfer the shares? |
Nikhil Bardhan, Calcutta |
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| Yes, you can transfer shares held in one of your demat accounts to another. But the depository participant from whom you are transferring the shares will charge a fee to debit the account. You need not close the demat account unless you are dissatisfied with the depository participant from where you want to transfer the shares. |
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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. |
