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I am a retired employee of Electricity Board and we have no pension.

I am a retired employee of Electricity Board and we have no pension. I have put the whole amount of PF and gratuity in bank FD and in post office Monthly Income Scheme and senior citizen saving scheme. Monthly,

I get about Rs 15,000. Am I liable to pay income tax? My son is working in the US for the last 10 years. He wants to buy a house in Pune worth Rs 1 crore. Is it taxable?

Venugopalan U

The total monthly income from savings is Rs 15,000,which amounts to Rs,1,80,000 pa. If you dont have any other source of income,you will not be taxed as per Income Tax Act of India. The tax-free income cap for senior citizen is Rs 2,50,000 pa for current financial year. The income earned by your son will not be taxed if: He satisfies the criteria of being a NRI or Not Ordinarily Resident in previous year. If your son purchases a home in India with income earned in US,he will not be taxed. But any income arising from such property in future will be taxable as per the provisions of the act. Therefore,rental income would be taxable in India and profit on sale of property will be liable to Income Tax. Also please note that as per RBIs directive: The general permission,however,covers only purchase of residential and commercial property and is not available for purchase of agricultural land/plantation property/farm house in India.

I transferred my PPF account from Post Office,rail coach factory,Kapurthala to SBI Kapurthala in January 2013. Total amount transfersed to SBI was Rs 1,16,179. SBI has credited interest of Rs 852 for FY 2012-13 to my PPF account. The decleared interest rate of PPF is 8.8 per cent. Clearly,the interest credited to my account is very less. I want to know who will pay my remaining interest,post office or SBI.

Paritosh Kumar

It is difficult to answer this without knowing the full details. Do you put money in your PPF account every month? As far as I can see,the bank might have given you interest for the two months January 2013 when you transferred to March 2013. Please check if the interest for the remaining years is paid by the post office already in the amount transferred to SBI. The interest on PPF is calculated every month but paid at the end of the year. It is the responsibility of the post office to pay the interest when your money was with them. The best course of action will be to contact the post office and ask about the interest that they are supposed to pay. If nothing happens,think of filing an RTI application.

Expert advice by Adhil Shetty,CEO,BankBazaar.com

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