Capital gains

• Me and my husband are senior citizens. We have earned a capital gain of Rs 25 lakh on selling a flat, which is in my name. The proceeds will not be invested in another property, Can we invest separately to avoid capital gains. Also, I plan to gift half the amount (Rs 12.5 lakh) to my husband.

Rani Roy, via email

• There will not be any added benefit if you invest separately. You can consider investing in capital gain bonds within six months from the accrual of capital gains to save income tax. Also, if you gift Rs 12.5 lakh to your husband, any income arising from the amount will be clubbed with your income under section 64(1)(iv).

 

Tax liability

• I am a retired senior citizen. My income for assessment year 2015-16 will be: (a) Pension: Rs 160,000 (b) Interest income: Rs 300,000 (c) Interest from savings bank: Rs 11,000 (d) Long-term capital gain on share sale: Rs 30,000 (e) Company dividend (STT paid): Rs 15,000 (f) Short-term capital gain on share trade: Rs 270,000 (g) PPF: Rs 150,000 (h)TDS: Rs 15,000. What will be my tax liability.

I.N. Chakraborty, via email

• Your gross total income is Rs 741,000 (160,000+300,000+ 11,000 + 270,000). Long term capital gain on shares is exempt under section 10(38) and dividend is exempt under section 10(34). Total income after deduction of Rs 150,000 under 80C (for PPF contribution) and Rs 10,000 under 80TTA (interest on savings bank account) is Rs 5,81,000. The short-term capital gains tax at the rate of 15 per cent is Rs 40,500 and tax on the balance income of Rs 311,000 is Rs 1,100. The total tax liability is Rs 41,600 and with education cess of Rs 1,248, the aggregate tax liability is Rs 42,848. With a TDS of Rs 15,000, the balance tax liability is Rs 27,848.

 

Pension included

• I was a public sector employee. Now I am receiving monthly pension under EPS95. Is this pension taxable? I fall under taxable category and file return every year.

S. K. Roy, Calcutta

• Under section 17(1) of the income tax act, the term salary includes any annuity or pension. Monthly pension under EPS95 is taxable under the head salary.

 

 

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