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Since 1st March, 1999
 
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Q&A

Senior query

I am a senior citizen having income from pension and interest from bank, post office monthly income scheme (MIS) and Senior Citizen Savings Scheme (SCSS). My queries are:
a) If I include interests on fixed deposits, MIS and SCSS in my annual income along with the pension income, will the principle amount of FD, MIS or SCSS on maturity be included in the income of the year of maturity?
b) I had filed my income tax returns in a different city in India. I have now lost touch with my advocate there. How can I transfer my case to my city of residence?
Saibal Kumar Basu, Calcutta
You are not required to include the principal amount of either the fixed deposit or the MIS or SCSS as income in the year of maturity, as the same is not defined as income. However, bonus at the rate of 5 per cent on maturity of the post office scheme is included as income from other sources in the year of maturity and the same will be included in the annual income of that year. Regarding, the change of address, you have to make corrections in your PAN account by filling application form 49AA. You have to inform the assessing officer of your old jurisdiction after the address change for mitigation of PAN to the new jurisdiction. You also have to inform the Commissioner of Income Tax at Calcutta for the transfer of income tax record.
 
 
TDS logic
We have a partnership firm having a TDS liability only in the last quarter, that is, March every year. The remaining three quarters are TDS nil. Is it mandatory to file nil returns?
S.M. Prajapat, Calcutta
 
According to Section 200 of Income Tax Act, quarterly return is required to be filed where TDS has been deducted. So, if TDS has not been deducted, it is not mandatory to file the return except in the case of Form 24Q for the fourth quarter which is relevant for deduction of TDS on the salaries of employees. However, after the changes from April 2011, it is compulsory to report following two types of entries in the quarterly return (Form 26Q): a) Nil TDS on payment to transporter (engaged in the business of plying/hiring/leasing goods carriages) and b) Nil TDS due to nil certificates issued by assessing authority u/s 197 to the party. So, if you have TDS liability in the fourth quarter, you have to file return.
 
 
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