NPS: Govt staff entitled to rebate u/s 80CCD (1B)

Q. I am a government employee and NPS deduction from my salary is Rs 52,000 per annum. Am I still eligible for extra Rs 50,000 deduction under NPS u/s 80CCD (1B) for tax purpose this year? Please advise.

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— Pramod Thakur

A. Yes, you are entitled to claim additional deduction of Rs 50,000 under Section 80CCD (1B) of the Income-tax Act 1961 (The Act) apart from the deduction allowable to the extent of Rs 1,50,000 under Section 80C of the Act.

Q. I have read that one can remit up to $2,50,000 to another country in a financial year. Is it rupees or dollars? Please confirm.

— Kuldip Parmar

A. A remittance outside India is allowed for specific purpose to the extent of US dollar 2,50,000 under the Liberalised Remittance Scheme.

Q. Both my wife and my son are Canadian citizens. They have a plot in Amritsar. If they sell that plot, can they bring the proceeds to Canada and buy a house there? Please update on latest laws concerning foreign nationals selling their property in India and transferring money to Canada. 

— Kulbir Singh Kahlon

A. The amount of capital gain arising on the sale of plot situated in Amritsar shall be taxable. In case the plot has been held for more than three years, such land shall be treated as a long-term capital asset and any gain arising on sale of such land shall be taxable @20% plus education cess of 3%. However, in case the period of holding is less than three years, the amount of capital gain shall be treated as short-term capital gain which would be taxable at the normal slab rates applicable to the total income of an assessee. It will be possible for your wife and son to remit the sale proceeds of the plot to Canada to the extent of $1 million per financial year after the taxes leviable on the gain arising on sale of such a plot have been paid. Please note that such remittances shall have to be made though the NRO bank account of your wife and son. 

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