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Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Samkit Maniar, a CA from The Institute of Chartered Accountants of India with eight years of experience, will answer them.
Arnab: My mother will be selling an ancestral property which will be in her name in a month or two through mutation. She already has 3 flats in her name jointly with my father. Is there a way she can save tax on it?
54EC bonds to the tune of Rs 50 lakh may only be the option with her.
Before selling the ancestral property, she may plan (ie streamline) the ownership in existing 3 properties to avail a higher deduction by reinvesting in another residential house property.
Please note the amendments as laid down in budget which has removed indexation benefits from sale of properties after 23 July, 2024.
Please consult your CA before moving ahead.
Pankaj: I bought a flat in 2018 for Rs 2.5 crore now I want to sell at Rs 5 crore due to some debts. How much of TAX I will pay?
In case you sell post 23 July, 2024, your capital gains will be Rs 2.5 crore and taxation on the same will be @ 12.5% (excluding surcharge and cess). Roughly, Rs 31 lakh will be your tax payment before surcharge and cess.
Please consult your CA before moving ahead.
Anonymous: I live in Texas and I'm planning to sell a property I own in Mumbai. What are the legal requirements for selling property in India as an NRI and are there any specific taxes I need to be aware of?
I am not a legal expert. However, you need to be aware of capital gains taxes on selling your house property. Further, if it is a residential house property which is held for more than 2 years then you also qualify for a deduction on your gains that you make.
Please note recent budget changes in India on 23 July, 2024 will be applicable and you may not get the indexation benefits on the property.
As an NRI, you can only take out USD 1 million from your NRO account per financial year.
Please consult your CA before moving ahead.
Anonymous: Hi, I am Thiyagarajan. I am 52 years old. I have applied education loan of 20 lakh for my son's higher education in foreign country. I am the co-applicant. Can I avail the income tax benefit for the interest payable for the loan?
The only dilemma is whether higher education defined includes foreign education or not. Conservative view says it should not and aggressive view states it should. Practically many clients are claiming such deduction in their ITR.
Please take a call in discussion with your CA before going ahead with this. If you are going ahead and claiming it as a deduction you will be eligible for half of the interest payable on loan since you are a co-applicant.
Please consult your CA before moving ahead.
Anonymous: Hello, I have bank statements worth 50-60 lakh online transactions through business now i am planning to pay taxes for two years showing 34 lakh of income. What are the chances that i will receive a notice?
This is a very tricky question. Did you already have a business and showed business income in prior years? If yes, then your chances may be less. However, interest and penalty may be levied in any case.
Please note that receiving a notice does not mean you will have to pay additional taxes but you will need to substantiate to the IT authorities.
Please consult your CA before moving ahead.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.