A Super Senior Citizen Can File Return Of Income In Paper Mode

Jayesh Dadia, Chartered Accountant 

Section 197A of the Income Tax Act allows individual residents to receive certain income without deduction of tax at source like interest, dividend, rent, insurance commission, etc. However, the said benefits can be availed if tax on total income of resident individual would be nil and declaration in form 15G/15H has been filed with the payer. If individual is senior citizen, then the relevant form is 15H. 

Thus, if you are a resident individual and likely to receive certain income such as interest on FDs, rent, brokerage, commission, etc., and your income is not likely to exceed maximum amount which is not chargeable to income tax, then you can fill form 15G and submit to the payer so that the payer does not deduct tax at the time of payment. Similarly, 15H is earmarked exclusively for senior citizen whose taxable income would be nil. This provision is introduced mainly to avoid hardship to an individual/senior citizen to claim refund of TDS when their income is below the taxable limit. 

I am an individual.Do I need to mention details of cash deposit during the demonetisation period while filing the income tax return for assessment year 2017-18? 

Yes, if you have deposited Rs2,00,000 or more in cash during the demonetisation period. A new column has been introduced in the Income Tax Return form for the assessment year 2017-18 to report cash deposit in the bank account from November 9,2016 to December 30, 2016. However, you are required to fill in this column only if the cash deposit exceeds Rs2,00,000. 

Can I claim relief under section 89 of the Income Tax Act on the arrears of salary as per recommendation of Seventh Pay Commission? If yes, what is the procedure to be followed? 

A government employee who receives arrears of salary as per the recommendation of the Seventh Pay Commission can claim relief under section 89 of the Income Tax Act. However, the concerned individual has to fill in form 10E online on incometax website. You have to fill-in and file form 10E before filing your income tax return for assessment year 2017-18 and claim relief under section 89 of the Income Tax Act. The procedure of filing form 10E is very simple and available on the IT website: incometaxefiling.gov.in. 

I am 90 years old and my total income is Rs20,00,000. As per my calculations, a refund of `50,000 is due. Can I file return of income for the assessment year 2017-18 in paper mode? 

A super senior citizen, i.e., an individual of 80 years or more can file return of income in paper mode. Electronic filing is not mandatory for them. Even for claiming tax refund, electronic mode is not mandatory. 

During the current financial year, I have sold an old residential property which I had acquired in 1970. How do I compute the index cost in view of the amendment made to Finance Act 2017. What is the Cost Inflation Index? Has the government specified the Cost Inflation Index? 

Since you have acquired the property prior to April 2001, you can take the fair market value of your property as on April 1, 2001 as cost. You are also entitled to indexation of cost. The Central government has specified the Cost Inflation Index by a notification dated June 5, 2016. The Cost Inflation Index for the financial year 2017-18 is 272. 

I have sold shares of closelyheld companies and incurred Long Term Capital Loss of Rs2,00,000. In the same financial year, I have earned Short Term Capital Gain (STT paid) of Rs3,00,000. Can I set-off my Long Term Capital Loss against the Short Term CapitalGain? 

Under the provision of Section 74 of the Income Tax Act, the Long Term Capital Loss can be set-off only against Long Term Capital Gain. In other words, it cannot be set-off against Short Term Capital Gain or business income. Accordingly, you will not be able to set-off Short Term Capital Gain against Long Term Capital Loss. However, the Long Term Capital Loss can be carried forward for eight years and available for set-off against subsequent years Long Term Capital Gain only. Interestingly, Short Term Capital Loss can be set-off against Long Term Capital Gain.