I am a senior citizen. My sources of income are my annual pension of Rs 2,70,730 ( tax deducted at source amounts to Rs 3,170),  agriculture income of Rs 60,000 and an income of Rs.25,000/ month since August 2011 with a total deduction of tax at source of Rs 1,968 from leasing my car to a company. What is my tax liability?

 G Venkateshwer Rao, e-mail

Your income from salary is Rs 2, 70,730 and from other sources are agricultural income Rs 60,000 (added only for rate purposes) and car rental Rs 2, 00,000 .  The total income is Rs 5, 30,730.  The tax on this works out to Rs 32, 146 considering your senior citizen status.  But since this includes agricultural income of Rs 60,000, you get the following rebate- tax on Rs 2,40,000 + Rs 60,000 i.e. Rs 6,000.  Thus your net tax liability is Rs 26, 146 plus a surcharge of 3 per cent.  The total tax due from you is Rs 26, 930.  Since you have already paid tax by way of TDS (Rs 3,170 and Rs 1,968), you need to pay only the balance.  Pay this together with the applicable interest for the short fall in payment of advance tax as well as for the interest on the balance of the tax due from you.  Since the calculations especially of interest are slightly involved, take the help of a chartered accountant.

Timing the market

What is timing the market?

Soumya Sachdev, New Delhi

It is a utopian situation, when a person buys at the rock bottom price and sells at the peak in a stock market.  Even for the best chart buster, it is a near impossible task.  What one can, however, do is to buy when the market is down and sell when the market is peaking.  It is wrong to sit on one's investments.   One must book his profits periodically.  

Equity investments

Should I start my investments in equity in the cash segment or in the F&O segment?

Priya Godbole, Sholapur

For the first-time investor not well-versed in the nuances of equity, the one who is likely to slip on the slippery surface of share market, the best beginning is through the primary market i.e. IPOs. 

The alternative is to invest through mutual funds that have expertise and experience besides infrastructure in investments. 

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