Query Corner: Taxation

By: Vaibhav Sankla, Director, H&R Block India

PPF Contributions

Me and my wife (a homemaker) have PPF accounts with the State bank of India. If I contribute Rs 70,000 towards my account and Rs 30,000 towards my wife’s account (all money paid by me), can I claim Rs 1 lakh deduction from my income under Section 80C? So far I am claiming only Rs 70,000 - DRAY

Yes, you can claim deduction under Section 80C on contributions made by you to your wife’s public provident fund (PPF) account. - NRI & Capital Gains

I am an NRI. I sold some shares during the last financial year through NSE paying securities transaction tax ( STT) on all transactions. I understand the following:

a) Long-term capital gains arising on sale of shares held for one year or more are exempt from any tax.

b) Short-term gains arising on sale of shares held for less than one year will be taxable only on amount exceeding Rs 1,60,000, as I don't have any other income in India from any other source.

Is my understanding correct? - AURO PHILIP

Long-term capital gains arising on sale of shares (where the securities transaction tax (STT) is paid at the time of the sale) held for more than a year are exempt from income tax. Short-term capital gains arising on sale of shares (where STT is paid at the time of the sale) held for a period up to a year are taxable at 15.45%. For a non-resident such gains are taxable at 15.45% even in cases where he does not have any other income and such gains do not exceed Rs 1,60,000.