I was in government service till the last financial year and TDS was deducted. I have submitted income tax returns for the last four years. Thereafter, I resigned from service and currently pursuing MD from a government medical college in Bengal. I am getting a stipend of Rs 29,000 per month. The institute has issued a stipend certificate, which states that the amount received is fully exempt from tax under section 10(16) of the income tax act. I also have income of around Rs 50,000 per year from bank fixed deposits. What will be my tax liability? Is it mandatory to file returns?

Rajarshi Roy, via email

der section 10(16) of the income tax act, stipend income of Rs 3,48,000 (Rs 29,000x12) does not qualify for income tax. You earn around Rs 50,000 from bank fixed deposits, which is part of your total income. But since the interest income is below the Rs 2,50,000 limit (eligible for taxation), there will be no tax liability. But you will have to file income tax return as your total income of Rs 3,98,000 (3,48,000+50,000) before deductions exceeds Rs 2,50,000.

Super-senior status

I am a pensioner of the Bengal government. My date of birth, mentioned in the PAN card, is March 3, 1935. From which date will I be considered to have turned 80 years? Can TDS be avoided on interest earned in bank fixed deposits?

B. Agarwal, Calcutta

You will turn 80 on March 3, 2015. You will be considered a super senior citizen for financial year 2014-15. You can submit Form 15H under section 197A for non-deduction of TDS.

Filing returns

My bank has deducted TDS on a fixed deposit in the name of my daughter, who is a student. If I file return (to claim TDS refund), will it be mandatory to file her return every year?

A. Ghosh, Calcutta

You will only have to file income tax return, under section 139 of the income tax act, if the total income before deduction does not exceed the basic exemption limit of Rs 2.5 lakh for any individual below 60 years.

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