Query 1] I am working in Central Govt. Organization in Koradi, Dist. Nagpur. I was getting HRA (@ 20%) & Transport allowances (Rs. 3,200/-) of Nagpur city (A grade) till August 2012. From September-2012, I am getting HRA & Transport allowances of Koradi (HRA @ 10% & TA Rs. 1,600/-).

My organization started deducting excess payment they have made from September 2008 onward in 48 equal installments of Rs. 5,600/- per month from my salary from September 2012. Now my questions are:

  1. Can I get back the excess Income tax that I have already paid for the excess payment given by my organization from 2008 onward? If yes, then how it will be claimed?
  2. Can Rs. 5,600/- per month be included in Form No. 16 for deducting from gross salary?



You can not directly get back the excess Income Tax paid as a result of including excess allowances paid to you by your organization from 2008 onwards & which is recovered back subsequently. Similarly, Rs. 5,600/- cannot be reduced directly from the salary income of the current or subsequent years. However, you can claim a relief u/s 89 of the Income Tax Act-1961.


Query 2]

In the financial year 2012-13, a senior citizen need not pay advance tax if he is not having income from business. Please clarify the following two points:

  1. Can tax be calculate (self assessment) and be pay at the time of filing returns, Say in the month of June/July,2013 without any interest/penalty?

  2. Bank deducts TDS on FD’s. How to deal with this aspect? Can one submit form 15H to the bank for not deducting Tax on interest earned from FD’s? []


  1. From the Financial Year 2012-13, Senior citizens (60 years of more) don’t have the liability to make the advance tax payment of tax if they don’t have any income under the head “Income from Business/Profession”. Senior citizens can make the payment of tax on their total income by way of Self Assessment Tax at the time of their filing Income Tax Return. It may be note that the due date of filing income tax return for senior citizens, not having business income, is 31st
  2. In case of senior citizens, Form No. 15H can be file only when the tax on their total income is Nil. Immunity from payment of advance tax doesn’t enable them to submit the Form No. 15H to the bank.
Query 3]
Sir, I have following queries to make:
  1. I have earned long term capital gain out of sale of equity shares. S.T.T has been deducte and it is exempt from Income Tax. My query is, am I require to disclose capital gain in my return of income?
  2. What is the cost inflation Index for F.Y.2012-13?
  3. Gift is not taxable if it is receive from the relative under section 56(2) (vii). How often one can make gift to the relative during a Financial Year? Is there any cap on it? [ Krishna]


  1. The exempt income also requires disclosures in the Income Tax Return. The same need to be incorporate in the Income Tax Returns only for reporting purposes.
  2. The Cost Inflation Index for the F.Y. 2012-13 has been notified as “852”.
  3. There is no cap on the Gift transactions, neither on the amount nor on the number of occasions.
Query 4]
Thanks for your reply regarding clubbing provisions on taxability of funds transferred from husband to wife vide Tax Talk dated 15.10.2012. Kindly clarify position when a Son gifts in Cash to his Mother. In whose hand the interest earned on FD’s created by Mother in her name from such gifted cash/ Bank Account be chargeable, Mother or the Son? Mother has additional rental income but the overall amount (Rent + Interest on FD’s etc) is less than Rs 2,00,000/-.  Would such income of Mother also get club with the income of Son for tax purpose as assets/ cash is gifted by the Son without consideration? []


The clubbing provision is not applicable in case of gift between mother & son. The income would not attract clubbing provision. The income from the assets/amount so gifted would be taxable as the income of the donee (Receiver) only & would not be clubbed with the income of the Donor.