income tax raidsThe threshold limit of Rs 3,500 applies to each POSB account of a taxpayer.

By Chirag Nangia

My minor son’s income is clubbed with my income. I am entitled for deduction of Rs 1,500 under Section 10(32). How do I claim it in ITR2 form?
The income of a minor child, which is required to be clubbed with your income, needs to be disclosed in Schedule SPI. Net amount after exemption of Rs 1500, as stipulated in Section 10(32) has to be disclosed, along with name, relationship and head of income. If income of the minor is clubbed in various heads, it must be ensured that the total exclusion does not exceed Rs 1,500.

Can exemption of interest on Post Office Savings Bank (POSB) account up to Rs 3,500 under Section 10(15)(b) be claimed in addition to Section 80 TTA/TTB. Can the limit of Rs 3,500 be applied to each POSB account as there is no mention in the section that it is per assessee. In the case of a joint account, can each of the joint depositors claim Rs 3,500?
Section 80TTA entitles individual taxpayer (other than a senior citizen) to claim deduction up to Rs 10,000 on interest income earned from savings account held with post office. In case of senior citizens, this limit is enhanced up to Rs 50,000. Under Section 10(15), the interest on POSB account is exempt up to Rs 3,500 in a single account and Rs 7,000 in a joint account. Section 10(15) and Section 80TTA/TTB are not mutually exclusive. Therefore, you may claim deduction under both the sections.
The threshold limit of Rs 3,500 applies to each POSB account of a taxpayer. It is pertinent to note that only one account can be opened by an individual as a single account. Each of the joint account holders can claim a proportionate amount of exemption up to Rs 3,500.

Lakshmi Vilas Bank shares were recently delisted and there is an ongoing courtroom battle. Given the above scenario, can it be considered as capital loss and be set off against capital gains while filing IT returns?
Considering the current scenario, one may claim the loss on extinguishment of rights and set off against capital gains. The loss shall be declared under head ‘capital gains’ in the ITR. The nature of gains shall be short-term/ long-term depending on holding period. If compen-sation is granted at a later stage, it shall not affect the present claim and may be taxed later as income from ‘other sources’.

The writer is director, Nangia Andersen India. Send your queries to

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