| I have a PPF account that will mature in 2013. Can I open another PPF account and claim tax rebate? Can I open a second PPF account without claiming the tax benefit? I’m maintaining investment records for income tax purposes since 1991. Up to which year can I destroy my records? |
Paresh Nath Chandra, Calcutta |
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| A person can open only one PPF account in his/her name. A joint account is also not permitted. However, you can open an account on behalf of a minor child. The annual contribution to the minor account is clubbed with that of the guardian for the overall limit of Rs 70,000. Under the current rules, tax assessment can take a maximum of seven years. You should keep the records for the last seven years. |
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| Without a partner |
| One of the partners of a partnership firm suddenly died. The partnership deed mentioned that the business will be continued by the surviving partner on a proprietorship basis. What would be the capital position of the deceased partner? The partnership deed didn’t mention it. Will the capital of the deceased be added to the capital of the surviving partner? |
Nityananda Majumdar, Calcutta |
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| The capital of the deceased partner will go to the legal heir and not to the surviving partner. The surviving partner will have to share profits with the heir of the deceased. |
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| Permission required |
| I am a railway employee with a taxable income of Rs 1,90,000 in 2007-08. I had taken a house loan and submitted the documents with my office claiming tax deduction for repayment of the loan. But the railway department refused the tax deduction citing the reason that I have not taken prior permission to acquire an immovable property. Has the department the right to act in this manner? Can I claim tax benefit on housing loan repayment? |
Shankar Mishra, Asansol |
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| According to the Railway Services (Conduct) Rules, 1966, an employee should report to the authority before starting and after completing the construction of a house. Your department was right in refusing you. However, you can claim tax refund while filing your income tax return. |
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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. |
