'How Do I Show Rental Income In ITR?'

'Can I sell ESOPs to get capital gain exemption?'

'Can I get tax exemption for buying a house from capital gain made from selling stocks?'

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 have an underconstruction property which is going on. Can I sell my esops and use that amount for this to get exemption from capital gains?

Long Term Capital Gains (LTCG) can be adjusted to get exemption u/s 54-F, subject to following conditions:

1. Property being Constructed must be a Residential Property/House/Flat.

2. It is assumed that Constructed on property was started within one year before the LTCG.

3. Its Construction should be completed within 3 years from the date of Sale of Securities.

4. Full Sale consideration of LTCAs should be invested in Construction of Residential property.

Anonymous: We got her father's property amount 20Lakhs and we purchased land in that amount for that amount we should pay tax?

Your Question needs more details to be replied specifically. However, please note the following points:

1. If you have received an amount of Rs 20L from your wife's parents (may be in cash or through banking channels), it is a Gift to you or to your wife from her parents, hence not Taxable.

2. If the property is first transferred to your wife & she sells the same, it would be subject to Long/Short Term Capital Gain.

3. If it is LTCG, you may claim exemption u/s 54, provided you purchase or construct a house, with in one year before or three years (for constructed & two years for purchased) after the sale of property.

4. You should construct a residential house on the land/plot you have purchased, with in specified time limits to get the exemption.

VSPMANI: I have 3 houses (2 Flats and one individual house). The flats are remaining empty 4-5 months in an year due to non-occupation. How do I show my rental income in Tax return?

Always receive Rent from Tenants through banking channels, which would be proof of actual rent received by you during the year. Still better is to get LEASE DEED from your tenants for the period of their occupancy of your flats.

Claim VACANCY ALLOWANCE (for the period when your Flats remain vacant), under the head "Income from House Property", while filing your ITR.

Hope this will serve your purpose.

Sampath: I am vacating the house. The house owner is to return my advance. The house owner tries to give a signed UNDATED CHEQUE. HOW TO GO ABOUT IN THIS SITUATION?

There should not be any problem in accepting a cheque for return of Advance Paid to your landlord, at the time of vacating the house. Ask him or get an assurance from him about the time within which, you would deposit the cheque for clearing.

SYED: If I invest capital gain received through stock by buying a house property can I get tax exemption?

You will have to Invest FULL SALE AMOUNT in buying a House Property to get Exemption (u/s 54F). Investment of only Capital Gain will not serve the purpose. Kindly note that if you invest less amount in house property, then you may be entitled to proportionate benefit & not full exemption.

This is again subject to the condition that your Capital Gain is Long Term Capital Gain & not Short Term Capital Gain.

• You can ask rediffGURU T S Khurana your questions HERE.

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.