Back Not senior enough
I am a 61- year-old pensioner. I earned Rs 1,49,000 in FY 2006-07. I paid Rs 9,036 towards annual premium to LIC. What is my net tax liability? I have no other income or savings.
Tribuvan Kaul, email
You are a pensioner and yet you are not a senior citizen. You have to wait till you are 65 when the tax-free limit for you would be a sumptuous Rs 1.95 lakh as things stand. Your total income is Rs 1,39,964 after deducting the life-insurance premium on which the tax liability works out to Rs 3,997 because Rs 1 lakh is tax-free and the remaining amount falls under the first slab that attracts a 10 per cent tax. A 2 per cent education cess on this amount, that is, i.e. Rs 80 roughly is payable in addition.
registration charge
Is the registration charge of a property deductible? Is the municipal tax deductible?
Srinivas, email
Registration charges qualify for deduction under Section 80C. Municipal tax is deductible only in respect of let-out properties from the gross annual value in order to arrive at the net annual value.
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S. Murlidharan
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