In your analysis of the budget (Your Life after Budget, 23 July), you have mentioned that salaried people will be taxed at the highest rate of 20% if they do not disclose their permanent account number (PAN) for tax deduction at source (TDS). Does this rule also apply to taxpayers who cite the wrong PAN?
Kanika Tandon, Bhawani
No, the 20% TDS will only be applicable in case the individual has not disclosed the PAN. If somebody submits an incorrect PAN, he could be fined up to Rs 10,000. This fine is applicable for all transactions that require the submission of the PAN such as opening a term deposit or stock trading account, investing in mutual funds and purchasing a vehicle or property.
The story on affordable homes (Can you Afford a Cheap Home? 23 July) was an eyeopener. I was completely unaware about the extra charges that are latched on to the price of the house. After a reduction in the size of the property and the addition of numerous fees, does the total cost swell to the market level?
T. Narayan , Pune
Yes, often you end up paying more than the quoted price. This is because most developers advertise the absolute price rather than the price per sq ft. For instance, a two-bedroom flat will be valued for Rs 16 lakh without mentioning that its size is 700 sq ft instead of the 1,000 sq ft that you wanted. So, the per sq ft price comes close to the market cost. Also, the area mentioned is the ‘super area’ which means the usable space will be 20% less.
Online shopping has many benefits such as discounted rates (Surf, Click, Buy and Save, 23 July). Yet, many people are not convinced to buy these products because there is no assurance of quality. Is there some way to ascertain that a customer gets what he had been promised?
Kailash Nayak, e-mail
Most Websites clearly mention the specifications and condition of the product. However, if the product is not to your satisfaction, you can return it and ask to be reimbursed. You can also choose the payment on delivery option.
The column by Dipen Sheth (How to Bridge the Fiscal Gap, 23 July) was interesting. The government must take a strong stand on the issue of black money. Why are we turning a blind eye to this problem and not penalising people who indulge in such activities?
Amay Pratap, Delhi
After reading Rule Reversal (Should you buy a Gold Fund, 23 July) I realised the benefits of investing in a gold fund. How can I go about it?
Ketaki Pandey, Haridwar
To invest in a gold fund, you need to open a demat account and a trading account. You can invest in any gold fund as they are all linked to the international price of gold and, hence, give similar returns. In most gold funds, one unit is equal to the value of one gram of physical gold. But in case of the Quantum Gold Fund, one unit is equal to the value of half a gram of gold.
