I am 65 years old. In the current financial year, I shall earn Rs 1.30 lakh from pension and Rs 1.40 lakh from other sources. I am planning to invest Rs 1 lakh during the year in instruments permitted under Section 80C. Will it be any problem that my income from other sources is greater than my pension income? Are the interest and bonus from a post office monthly income scheme taxable? Do I have to file income tax return or pay any income tax for 2008-09 financial year?

M. Dasgupta, Dankuni

Your total annual income is more than the basic exemption limit of Rs 2,25,000. So, you will have to file income tax return for 2008-09. However, as you plan to invest Rs 1 lakh to get benefits under Section 80C, you won’t have to pay any tax. The fact that your income from other sources is greater than your annual pension income will not pose any problem. But you shall have to show your interest and bonus income from the post office monthly income scheme in your return as these are taxable.

Action time

Though tax return forms have been made annexure-less, no return is accepted without Form 16 at the Midnapore IT office. The income tax officers said these orders were for metros and since the Midnapore IT office is not computerised, attachment of Form 16 is a must. Please confirm if it as an official stand?

Prasenjit Bhakat, Midnapore

Tax returns have been made annexure-less for every region, metros or non-metro cities. If your income tax official declines to receive the return without Form 16, ask him/her to give it in writing and then you can take up this matter with the Income Tax Ombudsman who sits at P 7, Aayakar Bhawan, 3rd Floor, Esplanade, Chowringhee Square, Calcutta: 700069. Phone: (033)-22136704/22486103.

Gift for daughter

I would like to transfer some money to my daughter who is 19-years-old. What is the maximum amount I can transfer so that she doesn’t have to face any income tax liability?

B. Ganapati, Behala

As a father you can gift any amount to your daughter. There is no restriction. However, prepare a gift deed on a plain paper which your daughter should accept. The deed should be witnessed by two non-relatives.

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 700 001.