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I am a salaried individual working with a MNC.

Written by Express News Service |
December 6, 2010 10:58:24 pm

I am a salaried individual working with a MNC. I want to invest in the New Pension Scheme. Will I get tax benefit on NPS along with Employee Provident Fund?

Ravi Malhotra,Gurgaon

Yes you can get tax benefit on NPS contributions (under Section 80 CCD) in addition to EPF contribution (under Section 80 C). The aggregate amount allowed under Section 80 C,80 CCC and 80 CCD is Rs1 lakh. PPF offers guaranteed rate of 8 per cent and is not taxable at withdrawal stage. NPS does not have a guaranteed return and withdrawal at maturity is taxable as per current rules. Both are long term investment products.

My annual salary is Rs 7 lakhs. I want to invest in Infrastructure Bonds for tax saving. How do I decide which is a better infrastructure bond than any other?

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Sangeeta Shah,Vadodara

Returns and other features of the bonds that have been available are quite similar. For differentiation the biggest point to look at would be the credit worthiness of the issuer,as these are 10 year bonds (with lock-in for 5years) for which interim liquidity may or may not be available. Infra-bonds can be judged from the credit ratings. Though,it is not mandatory to get credit ratings for issuance of infrastructure bonds.

I have bought an apartment in Ghaziabad. The builder has already taken about 95 per cent of the payment but still he has not delivered the apartment. There is no penalty clause in the agreement. What should I do?

Anil Sharma,Ghaziabad

This is an unfortunate situation for many people. You will have to take legal recourse through the consumer court after serving proper notice to the builder.

I have to deposit the rent receipts in my company to avail HRA. However,the land-lord stays abroad and I have no way to get signed rent receipts from him. He refused to send it through the courier. Is there a way out?

Sumit Grover,Chandigarh


The only evidence acceptable for claiming HRA is proof of rent paid is the rent receipt from the landlord. This can be called by for the assessing officer in case your papers are scrutinized. You can collect the rent receipts from your landlord on his next visit to India. The HRA exemption can be claimed at the time of filing returns if the rent receipts are available.

I am 65 year old and stay with my wife in Mumbai. Except my 3 bedroom apartment I do not have any savings and I do not want to sell it off. How can I use this apartment to get some money to live respectably?

Abhay Powar,Mumbai

You can take paying guest in one of your spare rooms to generate income. You can also avail of reverse mortgage facility. In this you pledge your house to the bank and get a fixed amount every month for up to 15 years while staying in the house. This product is available with many banks like SBI,PNB,BoB,Union Bank etc.


I have a house in the same city where I stay on rent. But my house is vacant and no one stays in it. Will I get tax benefit on the home loan I am paying? Do I need to pay tax on the vacant house as well,if yes then how much?

Sudipto Sharma,KolkataYes you can claim tax benefit on the home loan in this case. For calculation of your income from house property (tax to be paid on the vacant house),you may need to consult a tax consultant,who will calculate the tax to be paid depending upon the location of your house.

Kiran Telang,CFP,ABT Capital Advisors For queries and feedback email us at

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First published on: 06-12-2010 at 10:58:24 pm

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