is this income is taxable

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Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2011 My income is around 1,20,000 per annum ten years ago I invested in LIC New Jeevan dhara from the money of my retirement and now i received the notional amount of rs 6,00,000 from LIC.My age is 70 years old.
1Q: Is this money taxable??
2Q: Where to invest as to save tax??
3Q: If i am putting this money in Fixed
Deposit for a time of 444 days @8.5%
is it will be taxable?
4Q: What would be best thing to do as for investment with saving tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 June 2011 1Q: Is this money taxable?

The money received under the plan, which is a payment in commutation of pension is specically exempt U/s 10(10A).

2Q: Where to invest as to save tax??

You are a senior citizen, you have got the highest threshold limit of Rs 2.40 lac. You may invest in such schemes which are specifically for senior citizens yielding higher returns.
Some of them are Post Office Senior Citizens A/c , Bank FDRs etc.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 June 2011 Q 3: If i am putting this money in Fixed
Deposit for a time of 444 days @8.5%
is it will be taxable?
FD Interest will be always taxable.

4Q: What would be best thing to do as for investment with saving tax?

You are having alternatives like NSC, Bonds, TAx Savings FDR of 5 years etc.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2011 Q1: If i withdraw 1,20,000 cash at a time is this would be any problematic in the eye of income tax as i thinking to buy metals (silver) and
Q2: As my income is 1,20,000 my limit of interest can be 1,00,000 and i am eligible to file 15H form?
Q3: I am thinking to invest in bank FD and if i receive 1,00,000 as a interest pa the total income will be 2,20,000 so is there any tax liabilty??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 June 2011 Q1: If i withdraw 1,20,000 cash at a time is this would be any problematic in the eye of income tax as i thinking to buy metals (silver)
Ans: It is not problematic since a single withdrawal of Rs 1.20lac is not a high value transaction.
If you feel it practically problematic, you can withdraw as 60000/ +60000/ twice.
Q2: As my income is 1,20,000 my limit of interest can be 1,00,000 and i am eligible to file 15H form?
Q3: I am thinking to invest in bank FD and if i receive 1,00,000 as a interest pa the total income will be 2,20,000 so is there any tax liability??

Reply- Yes you can file 15H Form as your income does not exceed threshold limit and such question of tax liability does not arise.

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