I am a salaried employee drawing salary in excess of Rs. 10,00,000. My company used to assist me in filing my return and hence I am not familiar with the filing procedure. Now I am with another company where such assistance is not available. Please advice me the procedure for filing the Income Tax returns.
—Pratik Malhotra, Lokandwala, Andheri
You have to file your Income Tax Return electronically since your income exceeds Rs. 10 lacs. The process is very simple i.e. you can download the utilities from income Tax Website and prepare your return. Many online sites also offer free filing facilities. However, if you feel you cannot use any of the option then you may approach a professional for filing the return of Income.
I have earned a meager bank interest on my saving bank account. Is it mandatory to declare the bank interest in the computation of income? Is it exempt from tax?
—Sejal Shah, Ghatkopar
The bank interest earned from saving bank is taxable. You are not entitled to any deduction for financial year 2011-12. However, for financial year 2012-13 you shall be entitled to a deduction of Rs. 10,000 per year.
I have received policy proceeds from LIC on the death of my father. These policies are over 10 years old and the policy premiums were paid regularly. Please advice the tax treatment of the money received from LIC.
—Maruti Patil, Mahim
Any sum received on the death or maturity from LIC is tax free provided premium is paid for a period of 5 years or more. Since in your case premium is paid for more than 10 years, the proceeds are tax free.