Answers to your tax queries

Who to approach to get your tax refunds

I have been chasing income tax refund of Rs 93,290 for 2010-11 since April 12, 2015, when I received an “intimation for failure of refund processed at CPC”. I have been communicating with the ITO who passed it on to her Inspector. Can you please advise whom I should approach — whether the grievance cell or DCIT? — Kirit J Sheth

For non-receipt of refund, you can write letter to Assessing officer (AO). If no action is taken, you can write to the Additional Commissioner of Income Tax having jurisdiction over the AO. On expiry of 15 days, you can raise your grievance before the Income-Tax Ombudsman.

Is it advisable to invest in NPS under the present tax structure? Since income from annuity and withdrawal is taxable, would the returns match with other investment (considering that my income is in the 30% tax bracket). — Harsha Sudhish

Under the scheme of NPS, the maturity proceeds (lump-sum or annuity) is taxable whereas maturity proceeds in respect of other investments like employees Provident Fund (after five consecutive years of service) and Public Provident Fund are tax free. You can claim additional deduction under Sec 80CCD(1B) up to Rs 50,000 in respect of contribution to NPS. This will save your tax at 30% (subject to maximum of Rs 15,000) on your contribution to NPS every year.

My son and daughter were employed abroad. They had invested in bank NRE deposits with terms ranging of 1 to 3 years. They are now employed India. However, the NRE deposits are yet to mature. I would like to know whether the interest accrued in each financial year is taxable on maturity. — Ganesan Ramaswamy

The interest on NRE deposits is exempt under Section 10(4) of the Income Tax Act, 1961. This exemption is available only to assessees whose status is nonresident. As your son and daughter have returned to India, I understand that their status for tax purpose will be resident. Interest on NRE deposits will be taxable for the financial year for which their status is resident. They can hold NRE deposits till maturity