I retired from service in January and received a lumpsum amount of which I have gifted some part to my adult son and some part to my wife. Both of them have used the amount to open bank fixed deposits in their respective names. Will the interest accrued on their deposits be taxable in my hand? Will they be subject to tax deducted at source?

S. Ganguly, Calcutta

Gifting money to the adult son and wife does not attract income tax in the hands of either the donor father or the donee(s) adult son and wife. However, any interest accrued on the fixed deposit arising out of the gifted sum is taxable. In the case of your adult son, the tax on the interest will be payable by him. For the interest accrued on the deposit made by your wife, the tax liability will be in your hand under the clubbing provisions of Section 64 (1) (iv) of the Income Tax Act, 1961. Also, under Section 194A, TDS will be deducted if the aggregate amount of interest accrued or likely to be accrued during a financial year exceeds Rs 10,000.

Pension query

I am a central government pensioner. My date of birth is March 10, 1936. I would like to know from which date I would be considered to have attained 80 years so that I can get the benefit of enhanced pension claim?

R. C. Mondal, Calcutta

You will attain the age of 80 on March 10, 2016. You can get enhanced pension claim on and from March 11, 2016, according to the Central Civil Services Pension Rules, 1972. You can refer to order number 38/37/08-P&PW(A) dated 2.9.2008 regarding the implementation of the decisions on pension.

Capital gains

I have some ancestral property in Assam in my grandfather’s name. I recently sold them for Rs 5,00,000. How will I calculate my long-term capital gains (LTCG)?

S. Pal, Calcutta

You will have to calculate the fair market value of the property as on April 1, 1981. The cost inflation index in 1981 was 100 and the same in 2014-15 is 1024. So, the indexed cost of acquisition of the property is the fair market value x 1024/100. Your long-term capital gain will be the difference between the sales consideration and the indexed cost of acquisition. The tax liability will be 20.6 per cent of the LTCG.

If you have queries about investing or taxes or a high-cost purchase, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.