Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Vipul Bhavsar, a chartered accountant with 16 years of experience will answer them.
Anonymous: My father had about 3 kattah land which we, 7 brothers and 5 sisters, inherited. Local municipal valuation of the land is Rs 25L. Two sons of our one brother purchased the land from all at Rs 25 lakh. I got share a of Rs 2.50 lakh. My father and mother died long back. Our 5 brothers and 1 sister already died. Pls advise how I can show above Rs.2.50 lakh in my IT return. Will it be long term capital gain to me? Is it necessary to show this small amount at all in IT return? Pls advise.
The cost of acquisition for your parents or value as on April 1, 2011, whichever is higher will be considered as your cost of acquisition; the long term capital gain will be calculated on this amount.
Based on your other income, the capital gain should be reported.
Since the amount of sale is nominal, it is advisable to report such amounts and it won't lead to much tax liability, if any.
Sachin: Hi Vipul, I opted for Nyara buy back offer. They have deducted 10% TDS. Will capital gain be applicable on this buy back considering shares are originally Essar Oil bought in late '90s? Please help to understand exact tax implication. Also, if in case tax is not applicable, what is the process to take back TDS? Thanks
Capital gain tax shall be applicable since ownership is changing from you to company.
TDS can be claimed as refund or shall be adjusted in tax liability based on other income.
Sameer: Sir, I inherited an apartment flat which was invested by my father with a builder and will be receiving handover of the flat on my name now along with final registration in June 2025. Since I don't have any other active income source after early retirement, I wish to sell the flat and clear off my pending loans. Please tell me how I can save on the Rs 20 lakh short-term capital gain after the immediate sale of this property this year.
Exemption from capital gains can only be claimed against long term capital gains.
Since yours is short term capital gain, no tax can be saved.
Anand: I am about to sell my flat that I owned for 23 years, which I bought for Rs 5 lakhs and selling now for Rs 30 lakhs. I also co-own a second house with my wife. What would be the capital gains tax I am liable to pay 1) under normal circumstances and 2) under indexation scheme? Thank you.
Based on the limited information, tax liability shall be:
Anonymous: Sir, we recently sold our Mumbai flat for Rs 1.6 crore. The property is co-owned but I paid all the EMIs from my account. If the gains are Rs 70 lakh, can we divide it equally between my brother and I to reduce tax liability? Will the income tax department accept this during scrutiny or ITR processing? Pls advise
I would request you to share below information: Though you have paid the EMIs, have you alone taken the income tax deduction for principal and interest on home loan or was taken equally by both?
If you both have taken the income tax benefits, then you can divide the capital gain and tax accordingly.
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