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Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.
Anonymous: I was NRI for last 20 years and enjoyed interest on tax free FDs. I came back in end January 2024. I am filing ITR and will be filing ITR for 2023-2024. My question is for filing return for 2024-2025. Should I consider entire income from FDs from April 2024 or should I consider income from interest starting from July 2024 to March 2025? I have not yet converted NRE account to Resident account.
You shall consider Interest income for the period 01.04.2024 to 31.03.2025, while filing ITR for the financial year 2024.25.
You should also convert your NRE account to Resident account at the earliest.
Most welcome for any further clarification, Thanks.
Anonymous: Can an apartment be bought in joint name (father + son OR father in law + daughter in law) where in father pays it via his LTCG and son or daughter in law are co-owner and take loan for the same apartment (as apartment value exceeds LTCG).
Yes. LTCG of father can be adjusted against purchase of another house/apartment, even when it is registered in joint name with his son or daughter in law.
DEBASHISH: Could you help me to understand if below scenario is valid to get tax benefit. Please read all below four points before answering questions.
Point1: Sale agreement date of apartment = Jan 2023.
Point2: 60 percent of apartment cost (with self + home loan) paid to builder till now (July 2024).
Point3: Suppose, I sold stocks (Sept 2024) and invested LTGC to finance remaining 40 percent of apartment cost through instalments (before this FY end Mar 2025).
Point4: Expected possession date of apartment = Oct 2025 (Actual home registration date).
Question1. Am I eligible to claim this LTCG tax benefit under section 54F in above scenario for FY24 -25?
Question2. If I am eligible for LTCG tax benefit, do we need to put LTGC amount in capital gain account till possession of property? Or capital gain account is not needed, as LTGC amount is already invested to finance the remaining 40 percent of apartment cost in this FY24 -25?
Question3: If I am eligible for LTCG tax benefit, Can I use LTCG amount for prepayment of home loan in this FY24 -25 and get Section 54F tax benefit?
Questions4: If only option remain is to save in capital gain account for tax benefit in FY24 -25. I really want to avoid to save LTCG in capital gain account.
In this case, Suppose, I sold stocks (After current FY e.g. Apr 2025) and use LTCG amount for prepayment of home loan.Can I get tax benefit in this case for FY25 -26(**Assuming possession date of apartment = Oct 2025)
You are eligible for LTCG exemption u/s 54-F during F/Y 2024-25.
You are not required to keep this amount in Capital Gain Account & you may pay directly 40% cost of apartment to the builder.
You may use this amount for Repayment/Prepayment of Housing Loan also, but please ensure that payment to the builder, during one year before sale of stocks, should not be less than Capital gain on stocks.
You may not keep your money in Capital Gain Account & instead pay to the builder directly.
In case you sell your stocks in f/y 2025.26, you can still avail the Tax Benefit in F/Y 2025-26.
Hope it takes care of your quarries. Most welcome for any further details. Thanks.
Anonymous: Sir, IT assessess cash Gift from family like father rs:10 lacs dt:10-4-24 after cash Gift from father rs:5 lacs dt:20-06-24 through on bank channel. Question: Assessess cash Gift from family members how many times one finical year allowed in IT Act.
Gift from father of Rs 5 lakh, through a banking channel is no problem. It is not taxable in the hands of donee.
Gift in cash from father is also not taxable, but such entries are always subject to controversy. You should avoid making a Cash Gift & instead go for Gift by banking channels or Property or Shares etc.
Anonymous: Hi, i gifted a house to my sister thru registered gift deed on 2017. Now she wants to gift it back to me. I intend to sell it later and use the proceeds to purchase another property. Please advise if the sale outcomes are tax free in this case and how do we calculate tax on it.
Your sister can transfer Property back to you, without any problem.
You may sell it later & to avoid LTCG tax liability, you have to invest in another Residential House, as planned by you.
If your investment in the new house is more than the capital gain on your sold property, you will get tax exemption & won't have to pay any tax.
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.