I am a senior citizen. My gross income in AY 2014-15 is Rs 5,48,000. Can I claim a deduction of Rs 2,000 under section 87A. After deduction of Rs 1 lakh under section 80C and Rs 90,0000 as dividend from companies and mutual funds (fully exempt), my income is less than Rs 5 lakh?

Biman Chandra De, Serampore

According to section 87A of the income tax act, if the total income of an individual does not exceed Rs 5 lakh, the taxpayer is eligible for a tax credit of Rs 2,000. Your gross total income in assessment year 2014-15 for income earned in fiscal 2013-14 is Rs 5,48,000. After deducting dividend of Rs 90,000 [under section 10(34)] and investment of Rs 1 lakh under section 80C, the total income eligible for tax is Rs 3,58,000. So, you are eligible for tax rebate. Further, the tax rebate will also be applicable for income earned in 2014-15 with the eligible amount of deduction under section 80C been raised to Rs 1.5 lakh from Rs 1 lakh.

No need to file returns

I am a senior citizen. My interest on bank fixed deposit is Rs 2 lakh. I also have a PPF account in which the interest accrued is Rs 1.92 lakh. Will I have to file return on income?

Ila Mukherjee, Calcutta

Every individual whose total income is more than the maximum amount not chargeable to tax shall have to file a return of income. In your case, the PPF interest is exempt under Section 10(11) and the total income of the assessee is Rs 2 lakh. This amount is less than the maximum amount not chargeable to tax, that is Rs 2.5 lakh for fiscal 2013-14 and Rs 3 lakh for fiscal 2014-15. So, you need not file income tax return.

Duty of legal heir

In the case of the death of a taxpayer, is the onus of filing the tax return with the legal heir of the deceased?

D. Gupta, Calcutta

It is correct that the legal heir is responsible for filing income tax return of the deceased taxpayer. For convenience, there is a provision of filing returns online at www.incometaxindiaefiling.gov.in. You can register yourself as the legal heir. Go to the help section on the top right hand corner of the website and follow the subsequent instructions.

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.