No gift tax is applicable

Q

I am retired employee getting monthly pension. I want to gift my house ( ground plus two floors) to my son, who is a doctor. Would this transaction attract gift tax? The property fetches a rent of over ` 50,000. I want to retain the rent in my name to remain financially independent. So is it possible to assign the rental proceeds to my wife’s name in order to reduce my income- tax liability? After our lifetime my son would get rent for the two floors and my daughter should get the rent of one floor. RAVINDER Hyderabad

A) It will be advisable that you make a “Will”, instead of a gift deed since your son also has his own source of income. The Will should specifically mention the details of all the assets, both immovable and movable and name of the person who will inherit the said asset. There is no tax liability on any property which is acquired through inheritance, or any gift tax liability if the property is transferred to relatives.

Q

I am a salaried person and my wife is a housewife. I paid tuition fees for her postgraduation. Can I claim deduction on tuition fees paid under Section 80C? VEERESH Bengaluru

A) Any payment made by an individual as tuition fees whether at the time of admission or thereafter, to any university, college, school or other educational institution situated in India for the purpose of full- time education of any two children of such individual can be claimed as a deduction under Section 80C. Therefore, you are not eligible to claim deduction under Section 80C for the tuition fees paid by you for your wife's post- graduation.

Q

I am a senior citizen, earning most of my income through bank interest. I have submitted Form 15H to the bank and therefore no TDS is deducted. However, I pay the tax through self- assessment at the end of year. Please advice whether I require to pay the advance tax? ROHAN Hyderabad

A) For a senior citizen, who is of the age of 60 years or more at any time during the previous year, no deduction of tax shall be made if they furnish a deduction in writing to the payer. Such deduction should be in duplicate in the prescribed form to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil. Therefore, you are advised not to submit Form 15H to the bank as your tax on your total income is not nil. The provisions of advance tax are applicable to senior citizens only if the total income of senior citizens includes income received under the head “profits and gains of business or profession”.