Query 1]
I wish to take your help on the following:
1.      I purchased a flat in Chennai during 2008 for Rs. 22 Lacs with financial help from my daughter (around 60%) and during March-2013, I executed a settlement deed in favor of my daughter and got registered as per the prevailing rules in Chennai.
2.      Meantime, I purchased another flat in Chennai during 2009 (registration done on 15.02.2013) with my savings and also the entire sale proceeds of my Bhopal flat. (Around Rs. 12 Lacs of LTCG).
3.      Now that I have sold a plot in Bhilai and to save LTCG, I want to invest in another flat the entire sale proceeds.
As per existing provisions, to claim tax benefit, I cannot have more than one house property before investing in another property from the LTCG amount. Out of 2 flats I had, as indicated above, I had transferred one property in favor of my daughter through a settlement deed (with required stamp duty paid), I hope I can invest in another flat out of the LTCG now I got. Kindly advice. [R.Chandrasekaran -manakkal46@rediffmail.com]
On the date of availing exemption u/s 54F, you own not more than one house property. Resultantly, you can claim an exemption u/s 54F by investing the amount of net sale consideration for purchase or construction of another house property within a specified period.

Query 2]
I am a salaried employee with annual salary Rs. 3.20 Lacs per annum. I have two queries:
1.      I am earning 2 lakh and more for last two years and have paid tax Rs. 2,700/- and Rs. 3,200/- respectively in financial year April 2012- Mar 2013 and April 2013-Mar 2014. I have paid excess tax but have not filed the return. Is there any penalty for the same?
2.      My father has applied a flat from Lucknow Development Authority (Lottery Based) and gave Rs. 270,000/- (10% as token from his A/c). Unluckily, no plot was allotted so the refund was made in my savings bank a/c in which the first a/c holder is my wife and I am second a/c holder. Then I made Term deposit of the said amount in joint name, first name as my wife who is house-wife and second name being me. The rate of interest for the said deposit is 10% annual.
 I have given 15-G to the bank for not deducting the TDS as my wife is house wife. Now I am confused whether I have done right or not and whose tax liability is arising out of this deposit income? As my father is retired Government employee and have taxable income. I am also employed and earning Rs. 3.20 Lacs per annum. Kindly suggest me what can be done as I have not shown the deposit income for calculation of my tax liability?
[Anurag Mishra- manianurag@gmail.com]
1.      Though you have paid excess tax, it doesn’t absolve you from the mandatory obligation of filing income tax return as your income during the relevant year is exceeding the basic exemption limit. Penalty of Rs. 5,000/- can be levied if any person who is mandatorily required to file the income tax return fails to do so before the end of the relevant assessment year. [Section 271F of Income Tax Act-1961].
2.      The money received in your joint account was the money of your father. The amount deposited in your joint account could either by in the form of loan or gift.
3.      If it is a gift to you, the resultant income would be taxable as your income only & you would be required to work out your tax liability after including this interest income. If it is a gift to your wife, the interest income from FDR would be required to be clubbed with the interest income of your father only as the clubbing provision is applicable in such case. If it is a loan to you, income from FDR interest would be taxable in your hands only. However, if it is loan to your wife, Interest income from FDR, in normal course, would again be includible with the income of your father by virtue of clubbing provision.
4.      Form No. 15G is a declaration form which can be given only if the taxpayer don’t have any taxable income.  Any false or wrong declaration attracts consequences under section 277 & so, it should not be signed ignorantly. Such false declaration is liable for prosecution which may vary from 3 months to 7 years depending upon the quantum of default. Taxpayer can be penalized with rigorous imprisonment irrespective of the fact that such wrong declaration was furnished ignorantly or unintentionally as “Ignorance of Law is no excuse”.  Taxpayer may further not that the part A1 in Form No. 26AS shows the interest against which tax is not deducted due to submission of Form No. 15G/15H. The information is readily available with the Income Tax Department.

Query 3]
I have received Rs. 27,000/- from government as hailstorm fund against crop damage. Is it exempt from tax or it should be included in my income for tax calculation? Is any amount received from government regarding any crop damage fund during the year is completely exempt from tax or should it also be included in our income? Please specify if the income is above basic tax exemption limit. [mohitnimbalakar230@gmail.com]
The amount received would not be subject to income tax and would not be clubbed with your other income.


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