Monday, March 20, 2006
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IN TODAY'S PAPER
Since 1st March, 1999
I would like to gift my unmarried daughter a sum of Rs 2 lakh by cash or cheque. Can I make this gift' If so, what are the formalities to be observed and how' Can the gift deed be made on plain paper' Iím 65 years old and have a self occupied house. Do I have to submit the income tax return during the financial year 2005-06 while my income during the year is less than Rs 1,85,000' I am a PAN cardholder.
Nirmal Bose, Barrackpur
You can open a bank account in your daughterís name and deposit the money in that account. This gift must be supplemented with a gift deed properly registered. You should consult a lawyer to draft the gift deed. A general format is also available for the public. You can make the deed on a plain paper, but you will have to get it registered with a sub-registrarís office by paying a stamp duty and registration fee. The deed has to be witnessed by two persons other than you and your daughter. About your second query, you will have to file your tax return for the assessment year 2006-07 under the one-by-six scheme. From next year, however, you need not file the return if your annual income still remains below Rs 1,85,000.
Kindly clarify whether the deposits made in the Senior Citizen Savings Scheme are eligible for income tax deduction up to Rs 1 lakh under section 80C during the financial year 2006-07'
Arun K.Chatterjee, Calcutta
Deposits under the Senior Citizen Savings Scheme are not entitled to any tax benefit ' even the interest income is taxable as sections 80L and 88B have been withdrawn from the current financial year.
Post office savings
Is the tax exemption on income from interest on post office savings bank deposits under section 10 permissible from assessment year 2006-07' If so, is there any limit'
Mukul C. Roy, Calcutta
According to government notification in August 2005, interest income from post office savings certificates under section 10 (15) (iii) is not included while arriving at total income chargeable to tax. However, the maximum investment limit is Rs 50,000 for a single account holder and Rs 1 lakh for a joint account.
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