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K Pramod: Sir, We sold the Agriculture Land in a Village that was in my late Brother's name. We got around Rs.60 lakhs. The money is divided in four parts Rs.15 lakh.
1 portion gave to my Brother's wife, 1 portion to my Mother, another one to my Sister & last I kept Rs.15 lakh.
Now my portion of Rs.15 lakh will attract any Long term Capital Gain Tax? How to save this amount by an investment?
My Mother's 15 lakh is also with me since she is 82 year old.
How I should invest this too? Please advise me. Thanks
Just wanted to understand, was the land in your brother's name when he passed away. If yes, then has the distribution happened as per your brothers written Will in place? If not, then as per Hindu Succession Act, it goes to Mother, Brother's wife and brother's children in equal proportions.
Only if none are present it goes to siblings unless you have taken proper NOC from Mother and Brother's wife.
Assuming this is in place, yes your portion of 15 lakhs will be subjected to capital gains tax unless reinvested in 54EC bonds or residential house property (assuming conditions are satisfied).
Please consult your CA before moving ahead.
Anonymous: If I dissolve or close my Pvt limited company How can I get the share capital and reserve of my Pvt limited company by paying minimum tax or no tax if possible?
The taxation will depend upon accumulated profits the company has and taxable as dividend in the hands of shareholders and over and above any distribution of the accumulated profits it will be taxed as capital gains in the hands of the shareholder.
It would be helpful to understand the numbers, that is, accumulated profits, shareholding pattern, assets to be distributed to the shareholders, balance sheet, P/L etc.
Yogesh: Where should NRE turned resident invest money so as to minimise / no tax burden?
Once you are an Indian tax resident then you will be subjected to taxes on your worldwide income.
If you are a long term investor then you can invest in Indian markets, considering India does not levy tax on any unrealised gains.
Anonymous: I have a unique life story. When I was four months old, I was adopted by my relatives. As a result, all my official documents, including certificates, list my adoptive parents.
Currently I am 45+. Both of my adoptive parents have passed away 15-20 years ago. I have nothing from my adoptive family.
Later in life, when I was 15, I reconnected with my biological parents, but I didn't initially consider them as my parents. Unfortunately, my biological father passed away few years back. I have siblings from my biological parents, but I can't claim any inheritance from them due to a lack of proof of paternity.
Other hand, I was the only one to assist my biological father financially, helping with my sister's marriage and property purchases.
However, those properties are in my biological parents' names.
Due to my complex situation, I've been unable to obtain essential documents from govt like a residential certificate and my child's caste certificate.
I'm seeking advice on how to address this issue to ensure a smooth future for my child. My life was completely disrupted by the lack of care from both my adoptive and biological families at early stage.
Over time, I've built a successful career by myself. Currently I have a teenage daughter. I have purchased properties like lands and flats. All of these properties are either in my wife's name or jointly owned by us.
'm requesting legal guidance on how to address this situation so that my child and me will not face any difficulties in the future.
It is indeed a unique situation. However, keeping that aside, first thing you may want to do is write a Will because that is one of the basic document which most people don't do but should do.
As a pre-requisite to your Will, have an asset register in place to ensure all assets are adequately captured in the Will.
This is a first step of smooth succession planning.
Further, there is a more robust succession planning tool which is a private family trust.
Please consult a CA or tax expert who understands these issues before moving ahead.
Srinivasan: My wife has only interest income and STCG from shares but total income is less than Rs 2,00,000. Should she pay income tax?
Your wife falls within the basic exemption limit and hence she need not file tax returns or pay income taxes. However, in case you intend to obtain any loan in the future in her name then lenders will ask for tax returns for last 2 or 3 years. Hence, bear that in mind. In any case income taxes are not required to be paid by her but return to be filed.
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