Does interest earned from SCSS qualify for deduction under section 80TTB?
ET CONTRIBUTORS|Nov 26, 2018, 10.43 AM IST
I have invested Rs 15 lakh in the Senior Citizens’ Savings Scheme (SCSS) from which I am earning quarterly interest, after deducting 10% TDS. Does the interest earned from SCSS qualify as part of the Rs 50,000 deduction in interest income that’s meant for senior citizens?
Archit Gupta CEO, ClearTax replies: Interest of up to Rs 50,000 received from this scheme will be eligible for a deduction under Section 80TTB of the Income-Tax Act. The section provides for exemption of interest received on deposits in banks, cooperative societies engaged in banking business or a post office. Investment in Senior Citizens’ Savings Scheme qualifies as a ‘deposit’ in a post office.
I am planning to buy a flat in Mumbai. The initial payment will be made from my savings, while the rest will be paid from the sale proceeds of two flats I own at present. What will be the tax implications of the sale?
Amit Maheshwari Partner, Ashok Maheshwary and Associates replies: The gains from the sale of the two flats will be taxable in your hands. If the flats have been held for more than two years, then the gains will be long term. To arrive at the long-term capital gains (LTCG), you will have to deduct the indexed cost of acquisition of the flats from their sale amount. The LTCG will be taxed at 20%. In case the flats have been held for less than two years, they will be taxed as short-term capital gain according to the tax slab applicable to you. Further, if the gain is LTCG, you can claim tax exemption under Section 54 if you buy another flat within one year before or two years after the date of sale of the flats.
I am 72 years old and suffer from high blood pressure and diabetes. Can I claim income tax deduction for expenses incurred on medicines, doctor's fee and medical check-ups?
Rakesh Bhargava Director, Taxmann replies: Yes, you can claim tax deduction of up to Rs 50,000 under Section 80D. However, the deduction is allowed only if you are not covered by a health insurance policy. This deduction is available to a senior citizen from financial year 2018-19 onwards.