The Hindu Business Line : For women, 65th birthday calls for a bigger bash

Section 88 rebate is available to all individuals irrespective of their gender and age. Therefore, one can claim Section 88 rebate in addition to the esoteric rebate either under Section 88B or 88C which one may be entitled to. Section 88B is unique to senior citizens, both males and females, whereas Section 88C is unique to females. Normally, these two are mutually exclusive. But a lady can claim both the rebates when she steps into her 65th year, thanks to the chink in both the sections.

While Section 88B addresses one "who is of the age of sixty-five years or more at any time during the previous year," Section 88C addresses one who was "below the age of sixty-five years at any time during the previous year." This convergence of interest cannot happen except in the first year of senior citizenship. Well, let us not grudge this.

Six-month reckoning

FOR the purposes of Section 54ED, what is relevant — application money or cost of shares on allotment? Is the six-month period to be computed from the date of transfer of the listed shares or from the end of the financial year in which it was transferred? Is there any adverse consequence should the shares so acquired be transferred? - Makhan Jhaver, e-mail

What is material is the cost of shares allotted to the assessee. Shares applied for, and the amount paid thereon, have no relevance.

The six-month period is to be reckoned from the date of transfer. Within six months, he should have invested, that is, applied for shares. The allotment date is irrelevant for this purpose.

If the shares so allotted are transferred within one year, the amount exempted earlier will now be taxable as long-term capital gains.

Interest in gain

I SOLD shares to my friend. This was evidenced by an agreement vide which it was agreed that he will not only pay the prevailing market price on the date of sale as consideration but an interest of 12 per cent per annum on the outstanding amount.

Am I liable to capital gain tax? - Parag, e-mail

Very much. The income-tax law does not distinguish between sale through bourses and off-market transactions. The interest would of course be taxable under `income from other sources'.

(ASK! Send in your queries on accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

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