| I am 64 years old. I had invested Rs 50,000 in a tax saving fixed deposit with a nationalised bank in 2007. The fixed deposit is in my name and my wife is a joint holder. Will my wife be allowed to encash the fixed deposit within the five-year lock in period in the event of my death? |
G.K. Dhar, Calcutta |
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| Unlike National Savings Certificates, the five-year tax saving fixed deposits cannot be withdrawn within the lock-in period. If anyone wants to withdraw the money within the lock-in period, the tax benefit claimed on this investment has to be refunded. Which is why, premature withdrawal is not allowed in tax saving bank fixed deposits. |
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| Gifting money |
| I gifted some money to my wife and gave a loan to my son. They have invested the money in bank fixed deposits, shares and mutual funds. Will the income from those investments be taxable if their individual income is less than Rs 1 lakh? Will this income be clubbed with my income? |
Binay Kumar Basu, Hooghly |
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| Any income arising out of the money you had gifted to your wife will be clubbed with your income and taxed accordingly. If you had given an interest-free loan to your son who is not an adult, any income thereon will be taxed in your hand. |
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| Nominee rights |
| I am 80 years old and unmarried. I have bank fixed deposits and savings accounts in single name and I have made a nominee in all these accounts. Will the nominee become the custodian or absolute owner of the money in these accounts after my demise? What are the legal procedures that the nominee can become the absolute owner of the money? |
Lalit Mohon Chowdhury, Howrah |
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| A nominee becomes only a custodian when there is a legal heir to the account. Since you are unmarried and have no immediate dependant, your nominee will get the money. You can also make a will to the effect that after your demise, your nominee will be the owner of the money in those accounts. |
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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. |
