Can’t deposit over Rs 1.5 L in PPF account

SC Vasudeva

Q. Can we deposit more than Rs 1.5 lakh in the PPF account during a financial year? Please also clarify whether interest is payable on the excess amount deposited. — RS Brar

A.  According to paragraph 3 of Public Provident Fund Scheme, 1968, which deals with limits of subscription, it is clarified that any individual may, on his behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund any amount not less than Rs 500 and not more than Rs 1,50,000. Therefore, it is not possible to deposit more than Rs 1,50,000 in a PPF account.

Q.   This is with reference to answer to my query published in these columns on April 23, 2018 regarding “Interest up to Rs 50,000 exempt for senior citizens”.  Kindly clarify whether interest income received from bank on fixed deposit is to be calculated or not. Or is it only interest income from savings account? — Ramesh Kumar

A. Deduction of Rs 50,000 to a senior citizen in respect of interest income covers interest from bank and post office whether the same is received on savings account or on a fixed deposit.

Q.   I retired from the services of a nationalised bank in September 2016. I have paid income tax payable on a sum of Rs 4.50 lakh which was over and above Rs 10 lakh which I received as gratuity. Now, I understand there is some change in the income tax rules. Am I eligible to get refund of the tax paid on Rs 4.50 lakh under the new rules? Please clarify. — NPS Sohal

A. It seems you have received gratuity from the bank at the time of retirement of more than Rs 10 lakh.  The limit of Rs 10 lakh has been increased to Rs 20 lakh vide notification dated March 29, 2018. The increase in limit is not retrospective and, therefore, you would not be covered by the new limit for exemption.

Q.   I am an NRI. I have an NRO bank account in India. I received a TDS certificate from the bank. I understand that tax has been deducted on the interest which I received from that account for the last financial year. I do not have any other source of income in India. Do I have to file the tax return? If so, do I have to come to India to file it? — Harmandeep Singh

A.    Income-tax return can be filed online these days.  Therefore, you need not come to India to file your tax return. You are required to file tax return in case your total income for a financial year exceeds Rs 2,50,000.  In case your total income for the financial year is below Rs 2,50,000, but you are desirous of claiming refund of tax deducted at source, you would be required to file a return of income in accordance with the provisions of the Act.  You will have to obtain PAN for filing your return of income.