The interest earned on Post Office MIS & SCSS accounts are taxable.
Interest on PPF amount and the maturity amount were tax free in the old tax regime. What happens to the interest earned on PPF and the maturity amount in the new tax regime?
Interest amount and the maturity amount received from recognised provident fund are exempt from income tax under the new tax regime also by virtue of Section 10(11) and Section 10(12) read with Section 115BAC of the Income-Tax Act (subject to same conditions as applicable under the old tax regime).
The interest earned on Post Office MIS & SCSS accounts are taxable. If they are closed prematurely a discount of 1 or 2% is made from the principal, which is a corollary to the practice in scheduled banks. Can the discount, which is actually a tool to lower the rate of interest, be deducted from income in the year of closure?
As per the provisions of Section 57 of the Act, deduction of any sum paid as commission or remuneration to a banker for the purpose of realising the interest income is allowed as deduction. Since the amount paid does not qualify as commission or remuneration and has not been paid to realise the interest income, no deduction shall be allowed in this regard.
Banks and financial institutions are asking for linking of PAN card with Aadhaar in respect to people who are not IT assessed, holding joint FDs or other investment accounts. Will it be necessary to inform them that the customers concerned (those being asked to link) are not IT assessee?
PAN cards have to be linked to Aadhaar by June 1, 2023, otherwise PAN would become inoperative, i.e., the person would not be able to access financial services like opening a bank account, fixed deposits, etc. Only a few categories of persons are exempt from this requirement, to name a few: non-resident Indians, persons above 85 years of age, etc. Linking can be done online via the e-filing portal of the income-tax department (https://www.incometax.gov.in/iec/foportal/).
I have constructed a new house (after demolition of the old house which my father had constructed in parts in 1971 & 1979), from my savings on the plot which was in my father’s name at that time of construction in the year 2014. After the completion of the construction in 2016 my mother gifted that house to my NRI daughter in the same year. Now, my daughter wishes to gift that house to me in the year 2023, and which I will sell subsequently as early as possible. What will be the capital gain tax for me?
Following deductions can be claimed at the time of sale of the house by you:
Fair Market Value of the house on April 1, 2001 (before demolition) or cost of acquisition plus cost of improvement made before April 1, 2001, whichever is higher and cost of improvement (new construction done in 2014). Kindly note, since the property is held for more than two years, the capital gain will be regarded as long term and indexation benefit will be available to you on the above deductions.
Source: https://www.financialexpress.com/money/income-tax/your-queries-income-tax-ppf-proceeds-exempt-from-tax-under-new-regimen/3057566/
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