Question – My father is getting a pension from the state government. He has income from a monthly pension of Rs 12 thousand and an interest of Rs 23 thousand monthly. Can he give 15H forms to the bank so that tax is not deducted at source? The CBDT has also issued a circular in this regard on 22 May. -Niraj Kumar Bisht
Answer – Yes. Your father should fill the 15H form and give it to the bank so that tax is not deducted at source. The circular issued on 22 May states that if the tax liability of a senior citizen comes to zero after the rebate of section 87A, he can fill and submit Form 15H. Earlier the rule was that if a person’s income is less than the minimum taxable income then only 15H was the officer to fill the form.
Question – My brother bought a two-room house in August 2019 for 45 lakh rupees. Now he is thinking of selling it. With the money received from this, he wants to take two flats of 12-12 lakhs to another place. Wants to repay a home loan of 20 lakhs from the remaining money. I want to know if there will be any tax liability on doing so. – Narendra Srivastava, Hathras
Answer – Your brother’s investment is less than 24 months, so the benefits of investing in a new house will not be received. You did not specify the selling price of the two-room house. If it is more than 45 lakhs, then you have to add the income you have earned on higher receipts to your taxable income which will be short term capital gains. On the same basis, your tax liability will be created based on the category in which your income falls. You can repay the home loan.
Question – My son took a life insurance policy when he was a resident of India. He is currently an NRI and living in Canada. If he becomes a citizen of Canada, what will be his status? He neither has a PAN card nor an Aadhaar card. – R. K. Prasad, Patna
Answer – Your son took his insurance policy while living in India, but now he is a non-resident Indian. Being non-resident does not affect his policy. You should make your insurance company service branch aware of the whole situation and your current situation and your son should pay his insurance premium while he is there.
Question – I bought a house on 22 June 2019 for 55 lakh rupees. For this, I have taken a home loan of Rs 42 lakh. 13 lakh is paid through Demand Draft from his account. In such a situation, do I have to pay any income tax while taking a home loan of 42 lakhs? – Bharat Ram Goyal, Alwar
Answer – You do not have to pay any income tax right now. If you sell this house and if there is any profit on it, then you may have to pay income tax.