Q) On 26th September 2023, I’ll be completing 80 years. Please advise whether the I-T rules linking PAN with Aadhar will be applicable to a super senior after this date.

R. Ramasamy

A As per CBDT circular F. No. 370142/14/2022-TPL dated on 28th March 2023, a person who has failed to intimate the Aadhaar number in accordance with section 139AA of the Income-Tax Act, 1961 (the Act), read with rule 114AAA, shall face the consequences of the PAN becoming inoperative. The consequences of PAN becoming inoperative shall not be applicable to those persons who have been exempted from linking PAN-Aadhaar, which are as follows vide Department of Revenue Notification no. 37/2017 dated 11th May 2017:

  1. NRIs
  2. Not a citizen of India
  3. Age more than 80 years as on date
  4. State of residence is Assam, Meghalaya or J&K.

Q) I am 78 years old, a central govt. family pensioner. My question is: Can a family pensioner be allowed to deduct standard deduction ₹3,00,000 from the taxable income from total income ie., the family pension and savings bank FD interest before tax calculation.

Bhama Subramanian

A As you are 78 years old, the basic exemption limit is ₹3,00,000. Family pension and savings/FD interest received by you up to ₹3,00,000 will not be taxed. Additionally, for senior citizens deduction of up to ₹50,000 under Section 80-TTB is allowed from the interest earned from savings/FD from banks, post offices and co-operative banks. Further, under Section 57, family pension received by the surviving family members is deductible by ₹15,000 or 1/3rd of the pension received, whichever is less. To conclude, your taxable income will be arrived at only after availing the above deductions and the taxable income will be first reduced by the basic exemption limit applicable for senior citizens while computing the tax payable. The reply to your query is based on the old tax regime.

Q) If I invest part of my PF accumulation on retirement by opening a Post Office savings scheme under SCSS (for ₹30 lakh) and MIS (for ₹9 lakh) in my spouse’s name, will my spouse have to pay I-T on the sum of ₹30+9 lakh? I will also use my PF accumulation to open an SCSS and MIS for the same amount.

Gilbert Dsouza

A Under the clubbing provisions of the I-T Act, 1961, as provided in Section 64, any asset transferred by an individual to his/her spouse (directly or indirectly) otherwise than for adequate consideration or in connection with an agreement to live apart, any income arising from such transferred asset is deemed to be the income of the transferor. In other words, the returns accruing from the monies you transfer to your wife (directly or indirectly) will be taxed in your hands and not in your spouse’s.

(The adviser is partner, GSS Associates, Chartered Accountants, Chennai)

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