I am 74-years-old. Since 2004-05 fiscal, I have not been submitting I-T returns as my gross income in these years were lower than the threshold limits. However, I think my annual income, comprising pension and interest, may marginally cross the threshold limit of Rs 2,50,000 for 2011-12 financial year. Do I have to submit income tax return for assessment year 2012-13? Do I have to submit returns if I could avoid payment of tax by purchasing tax-saving instruments?

Subhas Chandra Banerjee, Bhadreswar

The threshold income for senior citizens is Rs 2.5 lakh for 2011-12 financial year. You shall have to file the tax return if your annual income from all sources exceeds this limit, even if you save the tax outgo by investing in specified instruments. You shall have to claim the deduction through the I-T return forms showing your tax liability as zero.

Annuity income

Are interest payouts from LIC’s Jeevan Surakhsa I plan tax-free?

Samir Banerjee, Calcutta

LIC’s Jeevan Suraksha I is a single-premium, pure pension plan. The annuity that you get from this plan is taxable now. However, the direct tax code proposes to make annuity income from a pension plan tax-exempt. DTC is unlikely to be implemented before April 2013. So, till then, your annuity income will not be tax-exempt. But the one-time investment in the plan is eligible for deduction up to Rs 1 lakh.

Contribution to pension fund

Is the deduction of the government’s contribution to the New Pension Scheme applicable for central government officers joining on or after January 2004 admissible in addition to the Rs 1 lakh permitted under Section 80CCE?

Nirmal Kanti Dutta, Chandannnagar

The Finance Bill 2011 has proposed to amend Section 80CCE so that contribution made by the central government or any other employer to a pension scheme is not included in the Rs 1 lakh deduction limit. This amendment comes into effect from April 2012 and will apply to assessment year 2012-13. So, you can claim the government’s contribution in addition to the Rs 1 lakh ceiling.

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