No rebate on insurance policy of son-in-law

SC Vasudeva

Q. I have taken a policy on the life of my daughter and her husband. Am I entitled to deduction under Section 80C of the Act for the premium paid in respect of my daughter and her husband? — Tilak Raj

A. Section 80C of the Act provides for the deduction of any amount paid to effect or keep in force an insurance on the life of individual himself, his wife or husband and any child of such individual within the overall limit of Rs 1,50,000 laid down by the said section. The payment made for taking an insurance policy in the name of your daughter would be allowed as deduction under Section 80C of the Act. However, no such deduction is permissible for the premium paid in respect of the policy taken in the name of daughter’s husband. 

Q. I was serving as a scientist in a university. I also acted as an editor of a scientific journal published by a professional society based in the university. At the time of my retirement, I was asked by my colleagues to continue the responsibility of editorship of the journal on an honorary basis. I have been continuing with the said job on honorary basis. A large part of the editing work is done by me from my residence, using computer and internet. However, on a few days I have to go to the office of the society to attend the office. I visit the office three to six times a month. I use my car to visit the office of the society.  My residence is around 50 km from the office of society and I am paid for my car expenses (TA) and I am also given certain amount of DA on such visits. Will the amount so received considered as my income? — Raghunath Rai

A. The amount paid to you towards meeting your travel expenses as well as detention allowance (DA) for going to office of the Society is not taxable as the same is not in the nature of an income. This reply is based on the presumption that the detention allowance is paid so as to compensate you for meeting the actual expenses incurred by you for visiting the office of the Society.  

Q. I am a senior citizen of 70 years. My total income for the financial year ending March 2018 would be as under:

Annual pension:  Rs 2,10,000
Interest income: Rs 1,50,000
Total income: Rs 3,60,000
Amount invested in PPF and NSCs: Rs 1,00,000
Will my income be taxable for the financial year 2017-18? — Vivek

A. Your taxable income on the basis of the figures given in the query, for the assessment year 2018-19 (financial year 2017-18), works out at Rs 2,60,000. This being below the maximum amount which is not chargeable to tax in case of senior citizen, no tax would be payable by you. I may, however, add that you would be liable to file return of income in view of the proviso to Section 139 of the Act.