We have appointed some graduate trainee in our company under the Indian Apprentice Act and give them stipend of Rs 16,000. Is the TDS provision applicable to them?

Sunil Somani, via e-mail

Salaries include wages. Wages, as defined in the Factory Wages Act, 1948, includes the amount received by an apprentice and will be subject to TDS, according to the provisions of the income tax act. If the gross stipend exceeds the threshold income limit of Rs 2 lakh, tax has to be paid and should be deducted at source, under Section 80C of the income tax act.

Inheritance logic

Under a recent finance bill, shall I have to pay any inheritance tax for receiving a house property in Calcutta under will-probate from my mother after April 2013?

A. Mukherjee, Calcutta

You will not have to pay income tax for inheriting immovable property in Calcutta under will-probate from your mother after April 2013 under the provision of Section 194 IA promulgated in the recent finance bill effective for financial year 2013-2014.

Heir rights

My father (88 years) had renewed a fixed deposit of Rs 5 lakh in 2012 in a nationalised bank for 10 years along with my mother (81 years) and myself. My father expired on February 10, 2013. Can my mother submit Form 15H in the next assessment year for non-deduction of tax at source as the intestate heir?

Arpita Basu, Howrah

In the case of the death of the husband, his widow and all the surviving children will inherit his property under the Hindu Succession Act. According to the law, all surviving children should renounce their respective rights of inheritance in favour of their mother. Your mother can submit form 15H from assessment year 2014-15 for non-deduction of TDS.

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.