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Since 1st March, 1999
 
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Q&A
Service charges
The RBI had said there would be no charges for ATM card holders. But the SBI is charging Rs 50 per year from my savings bank account. Besides, from August 8 last year, the SBI has started charging service fees for different services, such as for passbook updation. Is this permitted by the RBI? If not, what action can customers take against the bank?
Samir Dutta, Subhashgram
 
The RBI had said a bank would not charge any fee from its customers on transactions at its own ATMs. Banks also will not charge anything for transactions other than cash withdrawals from ATMs of other banks. The RBI had never said that banks would provide ATM cards free of cost. Secondly, banks are free to charge service fee for various services they offer, even for passbook updation and renewals. In this regard, the RBI had said banks must give passbook to their savings bank account holders. But it never mentioned that banks cannot charge service fees on these.
 
 
Age at your side
My date of birth is August 4, 1943. Shall I be considered a senior citizen for the purpose of income tax from 2008-09 financial year? If I become a senior citizen, should I have to file income tax return if my annual income is less than Rs 2.25 lakh in 2008-09? I had deposited some money in 6.5 per cent RBI tax-free bond. If I give a part of the money on maturity to my son, should I have to pay income tax on that? What will be the tax implication if I give the money to my wife who has no income?
S. Basu, Jamshedpur
 
Given your date of birth, you turned 65 on August 4, 2008. Thus, you became a senior citizen during the financial year 2008-09. If your total annual income during the year is less than Rs 2.25 lakh, you won’t have to file income tax returns. The interest income on the 6.5 per cent RBI Relief Bond is tax-free. So, if you give the money to your son or wife, you don’t have to pay any income tax. In fact, when you gift someone some money, the money should be out of your post-tax income. While gifting the money to your son is perfectly okay, any income from the money gifted to your wife will be clubbed with your income and you shall have to pay income tax, if any, on that.
 
 
 
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