Financial Health Check

During the period 1997 to 2001, I had invested in UTI8217;s three schemes that made a premature payment. Two schemes are in my minor daughter8217;s name and I have been shown as her guardian. What is my tax liability for FY 2004-05 for the above three schemes. Is the difference between amount invested and maturity to be shown as interest income and non taxable or capital gains?

Also, I get pension from my two previous employer through LIC administrated schemes, from LIC through Jeevan Suraksha, through the EPS scheme and from the new LIC scheme. On which schemes can I claim standard deduction.

R K Chary

The schemes on which you have already accounted the income and paid tax should not attract any capital gains tax on the 8216;surplus8217; you get on redemption. On the schemes that have a growth option and hence for which you get 8216;surplus8217; over your cost, would attract capital gains tax. Holding of units for more than one year renders the surplus as long-term capital gain on which maximum tax is 10 per cent, without indexation benefit and 20 per cent if you take indexation into account.

Standard deduction under Section 16 is available only in respect of pension received from your employer and hence pension received from LIC, through a policy taken out by your employer or through provident fund office, will not qualify for the relief. In any case, deduction under section 80L is not available on pension.

I have been a NRI for some time, but was a resident for 5 years in India and have turned NRI again. I have purchased some property and a car with my NRE money 8211; I am now migrating permanently to Canada. Can I can transfer the money from sale of my assets to Canada?
Raman

Since the immovable properties have been held for less than 10 years and since there is a limit of two properties by a NRI and since you are migrating to Canada permanently, you require RBI permission to take out the money to Canada. Your bank in India which handles your banking transactions will be able to get you the requisite permission on fulfilment of the formalities like payment of income tax on the capital gains on the properties and so on.

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