| I bought UTI’s unit-linked insurance policy some 12 years back. I claimed tax rebate on the premium paid every year under the scheme. But I never took into account the gains arising out of the Ulip investment. I now want to surrender the policy and my units will be redeemed on the basis of net asset value of the scheme. Will the redemption proceeds be taxable or tax-exempt? |
Anuj Thakur, Calcutta |
|
| |
| The maturity amount received in case of UTI Ulip is not taxable under the present tax laws. The investment in UTI Ulip is treated on a par with investments in any other life insurance scheme in terms of income tax. |
|
| |
| Avoiding TDS |
| I am a senior citizen and have invested some money in fixed deposits of a public sector bank in February this year. I submitted Form 15H in May. But I found that the bank has already deducted tax at source for the monthly interest that I get from the fixed deposit for the period of February to April. Were the bank officials right to deduct the TDS? |
Sunil Kumar Ray, Calcutta |
|
| |
| Bank officials were well within their jurisdiction
in deducting tax on your monthly interest income for
the period as you mentioned. Under the tax rule, the
bank is bound to deduct tax at source whenever the interest
is credited to your account if it has not got the Form
15H declaration from the depositor for non-deduction
of the tax. You submitted Form 15H in May. So, the bank
will not deduct any tax on your monthly interest income
accruing to you from May onwards. But, for the prior
period payments, it was legally bound to deduct tax
at source. To avoid TDS next year, submit your Form
15H to the bank in the first week of April 2008. |
| |
|
| |
|
| |
| ITR forms |
| I am an individual having salary income, interest income and non-taxable long-term capital gains tax from share sales. Can I submit my income tax returns for the assessment year 2007-08 in ITR-1? |
Arun Kumar Santra, Uttarpara |
|
| |
| Yes, you can use ITR-1 for filing income tax return when you have tax-exempt long-term capital gains from sale of shares. But if you have short-term capital gains from equity sales, you will have to file your return in ITR-2. |
|
| |
|
| |
| |
| 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. |
