Personal Finance

Your Taxes

Sanjiv Chaudhary | Updated on June 16, 2019 Published on June 16, 2019

I am a retired government servant paying income tax. My income is from pension and interest (SB). In the previous financial year, I invested ₹1.5 lakh in MFs for saving tax. Besides, I also purchased shares for ₹80,000 and sold the same at a loss, at ₹45,000. What shall be the tax treatment in respect of the above transactions, and which I-T form should I use while submitting my returns?

SC Saxena

I understand you receive monthly pension for your past employment with the government. As per the provisions of the Income Tax Act, the uncommuted pension received by you will be taxable as salary income at the tax slab rates applicable to you.

In relation to the savings bank interest income, the same is taxable in your hands subject to a deduction of up to ₹50,000 available under Section 80TTB (for resident senior citizens who is of the age of 60 years and more) of the I-T Act.

For individuals below 60 years of age or non-residents, a deduction against the savings bank interest income of up to ₹10,000 is available under Section 80TTA.

Further, a loss on sale of shares (being a capital loss) can be set off against the profit on sale of a capital asset only.

However, please be advised that though a short-term loss can be set off against a long- or a short-term gain, a long-term loss can be set off only against a long-term gain.

In case you do not have gains to set off the loss in the same year, the same can be carried forward to the next year.

I have health insurance, the premium amount of which I claim U/S 80D. Recently, I underwent a cataract surgery by incurring expenses of ₹45,000, whereas the insurer paid me just ₹24,000 as per the policy sub-limit. Can I consider the balance amount of ₹21,000 as being exempt from taxable income?

Shrikanth Mahajan

As per the provisions of Section 80D the I-T Act, medical expenditure incurred on yourself is available as a deduction only if you qualify as a senior citizen (aged 60 years or more during the relevant financial year) and you do not hold any medical insurance.

Since you already hold a medical/health insurance, you shall not be eligible to claim deduction for the medical expenditure incurred.

You shall be eligible to claim deduction for the medical insurance premium paid for such medical insurance policy as per the limits prescribed under the I-T Act.

The writer is a practising chartered accountant. Send your queries to

Published on June 16, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.