If I sell my residential house and a piece of land bought long ago at a very low price and if I liquidate my investments in shares, KVPs, NSCs and gold, the total sum may cross Rs 30 lakh. How shall I calculate the wealth tax? If I don't sell these shall I have to pay wealth tax?

Soumen Kumar Das, Calcutta

Productive assets such as shares, debentures, bank deposits, mutual funds, are not included in wealth tax. Only jewellery, motor cars, urban land, residential house, cash in hand more than Rs 50,000 are taken into account. Wealth tax is charged every assessment year irrespective of whether you sell those assets or not. The tax is charged on valuation of the net wealth (gross value minus cost of acquisition) of the assessee.

KVP rate

I had invested around Rs 90,000 in Kisan Vikas Patras. The KVPs will come up for maturity in 2017. What will be my tax liability on the maturity amount of KVPs. Is TDS applicable to KVPs. What is the interest rate on KVPs?

Jagadish Kumar Das, Calcutta

KVPs, money doubles in 8 years 7 months, which means the rate of interest is 8.4 per cent compounded annually. Though TDS is not applicable to KVPs, there is no tax benefit either. You will have to pay income tax on the withdrawal amount at the marginal rate of your income bracket, taking into account the KVP maturity amount.

Bank deposits

I have five term deposits of Rs 2.75 lakh. The bank had deducted TDS of Rs 1,309 from two fixed deposits that came up for maturity on November 4 and November 8 this year. I used to submit Form 15H but did not preserve any copy. The bank said they had not received Form 15H for 2007-08 and the tax was deducted for that year. The bank said the deducted amount would be refunded if I can produce the relevant document, which is not at my disposal. What can I do?

D. Bhattacharya, Calcutta

ce the bank has deducted tax at source, the bank is bound to give you a TDS certificate. To get refund of the deducted amount, you shall have to file income tax return claiming the tax refund.

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.