Can I pay long-term capital gains tax at the rate of 10 per cent without indexation on the sale of a house property?

S. Saini, Calcutta

No, you cannot. Long-term capital gains tax at the rate of 10 per cent without indexation is available only to the units of mutual funds and stocks bought before 2004, that is before the introduction of the securities transaction tax. For all assets other than stocks and diversified equity schemes of mutual funds, the long-term capital gains tax is 20 per cent — whether you avail of the indexation benefit or not. For sale of a house also, the tax is 20 per cent.

Tax-saving efforts

I am an income tax payer. I deposited Rs 60,000 in a tax saving bank fixed deposit for five years. The interest is cumulative and payable on maturity. Will the bank deduct tax on the income every year at source if I don’t submit form 15H? Since the interest is payable on maturity, can I claim tax deduction under section 80C on the cumulative interest every year as we do in the case of NSC?

Asish Chowdhury, Calcutta

TDS is applicable only when the interest is withdrawn. So, your bank will not deduct tax every year if it is payable on maturity. However, you will have to pay TDS on maturity if you don’t submit form 15H. During the intermediate accumulation period you can claim tax deduction u/s 80C on the annual interest, but at the same time you will have to show it as income from other sources and pay tax thereon.

Shifting base

I live in Berhampore, Murshidabad. I have a trading business. I have been filing my tax returns with the Berhampore income tax department. Since 2004-05, I have shifted my main office to Calcutta and have set up a production unit here. Where should I submit my income tax now?

Manik Ganguly, Berhampore

Hope you have a permanent account number. Since your business is now in Calcutta, you must have changed your address accordingly in all your official correspondence. You can start paying your income tax at the appropriate tax circle in Calcutta. While filing you returns with the new circle, will have to provide the department with some documents such as your past returns and address proof.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700001.