Your queries: Income Tax; Both joint account holders liable to pay tax on interest

financialexpress.com:

By Chirag Nangia

* I have a Post Office Monthly Income Scheme (MIS) with my wife and the interest amount is credited in my savings account every month. How should I compute the income tax on the interest received?

—Girish Chauhan

Interest earned on joint accounts are taxable in the hands of both primary and secondary account holders. However, there is no TDS on the Post Office MIS, but the interest income earned is taxable as per your tax slab, which is supposed to be reported in ‘Schedule OS’. Further, section 80TTA entitles an individual to claim deduction of the interest earned on savings accounts held with a bank, cooperative society or post office, up to Rs 10,000. In case of senior citizens, this limit is enhanced up to Rs 50,000 as per Section 80TTB. These deductions may be claimed, while filing ITR. Further, interest on Post Office Savings Bank Account is exempt up to Rs 3,500 for a single account holder and Rs 7,000 in a joint account under Section 10(15) of the Act.

* As I have started to invest in the stocks regularly since January this year, which ITR form should I file for this assessment year?

—Suresh Kumar

ITR 1 is a simple form for resident individuals having total income up to Rs 50 lakh, having income from salaries, one house property, other sources (interest, etc.) and agricultural income up to Rs 5,000. Individuals having income under the head ‘capital gains’, cannot file ITR 1, and must report particulars of income in ITR 2.

* If I sell my existing flat which I held for 10 years and use that money within three years to book a new flat, will I be able to get tax exemption on the long term capital gains?

—Niraj Gupta

The new residential flat must be purchased either one year before or two years after