| I am a retired person and my total income will be much below the threshold limit of Rs 1.95 lakh for the financial year 2007-08. I had regularly submitted Form 15H for bank deposits but not for the Senior Citizen Savings Scheme (SCSS) and the post office monthly saving scheme (POMIS) as TDS was not applicable on these. Recently, I found that tax had been deducted at source from my quarterly interest income from the SCSS account. Is TDS also applicable to POMIS? |
N. Talukdar, Calcutta |
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| TDS is applicable on the Senior Citizen Savings Scheme, but not on post office schemes, such as POMIS and NSC. |
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| Share sale |
| I bought some shares 30 years ago. I have no demat account. Can I sell these shares by opening a demat and trading account? What are the rules? How much tax do I have to pay? |
Kunal Ghosh, Salt Lake |
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| Yes, you can and you don’t have to pay any tax on the capital gain from selling the shares. You will have to open a demat account and then convert the paper scrips into dematerialised form. The dematerialised shares then can be sold through a brokerage house registered with the Bombay Stock Exchange or the National Stock Exchange. Since you are holding these stocks for more than a year, your capital gains tax will be nil. |
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| Feel free |
| I am 76 years old and my total annual income is Rs 1.3 lakh. I have an NSS account for the last 15 years with the GPO. If I withdraw the full amount from the account, including an interest of Rs 60,000, will there be any tax deduction at source? |
Samir Chatterjee, Calcutta |
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| Till 2003, the income from NSS account, including interest, was taxable on withdrawal at the rate of 20 per cent at source. However, after the 14th amendment of the income-tax rules in 2003, senior citizens having no taxable income can submit Form 15H with a self-declaration and there will be no tax deduction at source on the NSS maturity. Since your total annual income is below the threshold limit of Rs 1.95 lakh, there will no tax implication. |
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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. |
