By Chirag Nangia
My minor son’s revenue is clubbed with my revenue. I am entitled for deduction of Rs 1,500 beneath Section 10(32). How do I claim it in ITR2 kind?
—Maneesh
The revenue of a minor kid, which is needed to be clubbed with your revenue, wants to be disclosed in Schedule SPI. Net quantity immediately after exemption of Rs 1500, as stipulated in Section 10(32) has to be disclosed, along with name, relationship and head of revenue. If revenue of the minor is clubbed in several heads, it have to be ensured that the total exclusion does not exceed Rs 1,500.
Can exemption of interest on Post Office Savings Bank (POSB) account up to Rs 3,500 beneath Section 10(15)(b) be claimed in addition to Section 80 TTA/TTB. Can the limit of Rs 3,500 be applied to every POSB account as there is no mention in the section that it is per assessee. In the case of a joint account, can every of the joint depositors claim Rs 3,500?
—Panchapakesan
Section 80TTA entitles person taxpayer (other than a senior citizen) to claim deduction up to Rs 10,000 on interest revenue earned from savings account held with post workplace. In case of senior citizens, this limit is enhanced up to Rs 50,000. Under Section 10(15), the interest on POSB account is exempt up to Rs 3,500 in a single account and Rs 7,000 in a joint account. Section 10(15) and Section 80TTA/TTB are not mutually exclusive. Therefore, you may well claim deduction beneath each the sections.
The threshold limit of Rs 3,500 applies to every POSB account of a taxpayer. It is pertinent to note that only one account can be opened by an person as a single account. Each of the joint account holders can claim a proportionate quantity of exemption up to Rs 3,500.
Lakshmi Vilas Bank shares have been lately delisted and there is an ongoing courtroom battle. Given the above situation, can it be regarded as capital loss and be set off against capital gains when filing IT returns?
—Nagarajan
Considering the present situation, one may well claim the loss on extinguishment of rights and set off against capital gains. The loss shall be declared beneath head ‘capital gains’ in the ITR. The nature of gains shall be brief-term/ extended-term based on holding period. If compen-sation is granted at a later stage, it shall not have an effect on the present claim and may well be taxed later as revenue from ‘other sources’.
The writer is director, Nangia Andersen India. Send your queries to