Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Mihir Tanna, associate director, S K Patodia and Associates, will answer them.
Anonymous: FD returns are taxable even though not redeemed, while equity Mutual fund returns are taxed only upon redemption -- is that correct?
Interest Income can be offered to tax on accrual basis or receipt basis. Thus, you have option to offer all the Income from other sources on receipt basis but once option is taken you cannot change it.
However, if TDS is deducted on interest income, practically additional care will be required to reconcile Income as per 26AS and as per receipt.
Anonymous: Hi Mihir, being in new tax regime, is it OK to pay tax on NSC interest on maturity/ encashment/ receipt, or, is it necessary to pay tax on NSC interest every year on accrual basis? Last year I paid tax on NSC interest on maturity/ receipt. This year FY2023-2024, AIS shows NSC interest on accrual basis.
Interest income on NSC is taxable as Income from other sources. Taxpayer can offer all the income from other sources on receipt basis and once the said method is adopted, it should be followed in future years also.
However, practically it will be difficult to reconcile with AIS and 26AS every year.
M: Ten years ago my son booked under construction flat for one crore rupees. Now flat is ready for possession and son is transferring the allotment letter to his father before the registration. For stamp duty calculations the circle rate of the property is Rs 2 crore. What is the income tax implication for both son and father?
Gift received from son is not an Income. So there will not be any tax implications on transfer of flat by son to father. In future when father transfers the flat, cost to the previous owner (son) will be cost to current owner (father). Date of acquisition will also be date on which son acquired flat.
Bakyalakshmi: I have taken sbi life smart wealth builder insurance policy on 20.9.2017. Remitted premium as 100000 for each year for 5 years. Total amount paid 500000. Now surrendered on Feb 2024 and got 750000. Kindly clarify whether the policy comes under LTCG. How much tax has to be paid for the benefit 250000?
The amount received on the maturity of your ULIP is free from tax as per section 10(10D) of the Income Tax Act, 1961, if the amount of premium paid is less than 10 per cent of the sum assured you will receive.
Anonymous: How to report virtual digital assets shown in the ITR?
Sale of virtual digital assets is taxable at 30 per cent after deducting purchase cost only and no other deductions will be allowed. Head of income (Business Income or Capital Gain) depends on several factors such volume, source of investment, other income, etc.
- You can ask rediffGURU Mihir Tanna your questions HERE.
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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.
