The Hindu Business Line : Not senior enough

I am a 61- year-old pensioner. I earned Rs 1,49,000 in FY 2006-07. I paid Rs 9,036 towards annual premium to LIC. What is my net tax liability? I have no other income or savings.

Tribuvan Kaul, email

You are a pensioner and yet you are not a senior citizen. You have to wait till you are 65 when the tax-free limit for you would be a sumptuous Rs 1.95 lakh as things stand. Your total income is Rs 1,39,964 after deducting the life-insurance premium on which the tax liability works out to Rs 3,997 because Rs 1 lakh is tax-free and the remaining amount falls under the first slab that attracts a 10 per cent tax. A 2 per cent education cess on this amount, that is, i.e. Rs 80 roughly is payable in addition.

registration charge

Is the registration charge of a property deductible? Is the municipal tax deductible?

Srinivas, email

Registration charges qualify for deduction under Section 80C. Municipal tax is deductible only in respect of let-out properties from the gross annual value in order to arrive at the net annual value.

(ASK! Send in your queries to ask@thehindu.co.in.)

http://MentorQA.blogspot.com

S. Murlidharan

More Stories on : Taxation | For the Asking

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
There should be accounting for policies

Statement of equivalent production

Not senior enough

Integrity will win, in the end

Does CPT bark for BAC?

Economics of succession

Mobile versus plastic cards

Just Do IT

Is there a road to corruption-free road construction?

There are no short-cuts in life

Project manager, the hub of communications