I am a senior citizen. I invest Rs 1 lakh every year in ELSS plans of various mutual funds since 2008-09 and will continue to do so till 2010-11. Under the new direct tax code effective from April 2011 the tax exemption on ELSS investments will be withdrawn. What will happen when I shall start withdrawing from financial year 2011-12? Narendra Lal Kundu, Hooghly
The new direct tax code has a proposal to implement exempt-exempt-tax system and withdraw the benefit of tax exemptions to investments such as ELSS, but it is still in a draft form and has not yet been enacted. Things will become clearer when the draft is presented before Parliament for ratification. However, if EET is implemented, it will most likely be with prospective effect and not retrospective effect. All investments made after the promulgation of the new direct tax code will come under the EET regime and not those made before that date.
Below threshold I am 62 years old and a housewife. I have interest income from post office monthly income scheme, Senior Citizen Savings Scheme and bank fixed deposits. The total annual income is less than Rs 1,80,000. Do I need to pay income tax and submit returns? Mukul Pandit, Calcutta
The basic exemption limit on annual income for women has been increased to Rs 1,90,000 for financial year 2009-10. Since your annual income is below the threshold limit, you dont have to pay tax or file tax return.
Return route I was employed in Bhilai and hence I had been filing my tax return there. Now after retirement I came back to Calcutta. I am still filing my IT return at Bhilai. Is it okay? S.K. Mallik, Narendrapur
You can change your income tax ward for filing return from Bhilai to Calcutta. Find out on www.incometaxindia.gov.in in which IT jurisdiction you belong to now. Go to jurisdiction of officers under the about us section. Once you identify the income tax ward/circle, contact the assessment officer there.