SC Vasudeva

Q. I am an NRI having residential HUF property at Chandigarh which I am planning to sell.

1. Can I give a letter of authority to my father to sell the property?

2. What would be the tax applicable?

3. Can I get an Aadhaar card? Please advise.- Dr Gurman Gill

A. (a) You can execute a Power of Attorney in favour of your father authorising him to sell the property on behalf of your HUF.

(b) Capital gain arising on the sale of the property shall be taxable @20% plus education cess of 3% in case the amount of capital gain arising on the sale of the property which has been held for more than two years. In case it is not so held, tax would be chargeable at the normal slab rates applicable for the relevant assessment year.

(c) An NRI is not required to obtain an Aadhaar card. This is in accordance with the notification issued by the Government.

Q. The rent of my godown complex for the month of March 2017 (FY 17-18) was paid to me during financial year 18-19.

1) Please clarify whether this rental income is to be counted towards the FY 17-18 or FY 18-19 while filing the I-T return.

2) Also clarify whether TDS deducted from the rental bill of March 2017 paid during the FY 18-19 will be counted towards the FY 17-18 or 18-19 for filing the I-T return.

- Surjit Singh

A. Your queries are replied on the presumption that the amount of rent for March 2017 has been received in financial year 2017-18 relevant to the assessment year 2018-19 and the words "financial year 18-19" have been mentioned incorrectly as rent for March 17 could not have been received in financial year 18-19.

(a) The rental income for the godown complex for the financial year 2017-18 shall have to reflected in the return of income for the full year i.e. April 1, 2017 to March 31, 2018 even though the amount has been received in the succeeding year.

(b) The credit for tax deducted at source will be available on the basis of form 26AS, which indicates deduction of tax by the payer and for which the relevant return has been filed by the payer. Therefore, in this case, the amount of tax deducted at source in respect of the rent for the month of March 2017 having been paid in the succeeding year, the credit for the same shall be allowed to you in the succeeding year.

Q. i) I purchased one Jeevan Dhara policy from LIC in 1990 for which the annual premium was Rs 1,640. Now this policy is matured and I am getting Rs 1,800 per month as annuity. Kindly advise me whether this amount is taxable.

ii) I understand that under Section 80-D of income tax, mediclaim insurance premiums and medical expenses incurred are deductible to the extent of Rs 30,000. Please advise which medical expenses are deductible under this section. I am a retired public sector employee and senior citizen.

- PK Garg

A. i) It is not possible to give reply to your query with regard to the receipt of annuity till such time the terms of the policy are perused.

(b) Deduction under Section 80D of the Act is allowable for medical expenditure incurred on the health of the assessee or any members of his family as it does not exceed Rs 30,000 in case of a very senior citizen. The section does not indicate the nature of expenditure and therefore any expenditure incurred by a very senior citizen for the cost of medicines, doctor's fee, etc. which is paid by the assessee in connection with his or any family member's health problem should be allowable as deduction. It may be added that the Finance Act 2018 has increased the allowable amount of deduction as Rs 50,000 and further such deduction shall be allowable to a senior citizen for financial year 2018-19.

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