CA. Naresh Jakhotia

TAX TALK-27.06.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “a RESIDENTIAL HOUSE PROPERTY” & LTCG EXEMPTION U/S 54” Query 3] 1. I have inherited 1/3 ownership in a residential house which was purchased by my fore- father in 1920. The valuation of the whole house on 1-4-1981 was 15 Lacs and hence Rs. 5 Lacs for my 1/3rd share. Now I am selling my 1/3rd share for Rs 70 Lacs. What will be my taxable amount after considering index? 2. There are 7 shareholders in my HUF property. My question is whether I am entitled to purchase a single house or entitled to purchase 7 houses, 1 each for every individual member. Is there any restriction in this regard? 3. I am told that Chennai High Court has pronounced that one can purchase as many houses as he chooses, while the Mumbai High court sticks in favor of one single house only. Since my property is in Maharashtra, what is my entitlement? Is there any Supreme-Court ruling also in this matter? 4. In case ,my way to a...

TAX TALK-20.06.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “DEVELOPMENT AGREEMENT & INCOME TAX IMPLICATIONS” Query 1] My friend had purchased a plot in 1975. He has recently sold this plot in good locality by giving it to a developer and in exchange the builder is going to give 5 flats, considering he has 3 sons & 1 daughter and 1 flat for himself. Besides this the builder is paying some amount by cheque. What would be the position of capital gain tax levy whether all 5 flats will be considered as his single flat for purpose of capital gains tax rebate deeming having reinvested the sales proceeds in residential house property or only one of these would be qualifying for rebate and others taxed. For illustration, suppose he has sold 5000 sq. ft. @ 4000. Thus, total notional sales proceed Rs. 2 Crore. Here he is getting 5 flats of say 800 sq. ft. each and Rs.20 Lacs by cheque. Whether the capital gain tax liability arises in such case even though smal...

TAX TALK-13.06.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “SOLD FLATS @ RS. 600/- PER SQ.FT. WHETHER TAX PAYABLE @ RS. 2500/- PER SQ.FT?” Query 1] I own an ancestral property at Bajaria, Nagpur. In the year 2001, I started construction of flats of about 600 sq. ft over the aforesaid property. I entered into an agreement of sale of flats at the rate of Rs. 600/- per sq. ft on installment basis with different purchasers. Now, the purchasers want to register the property in their names after paying the installments. My queries are: 1. Now the value adopted by the Registrar for the purpose of levy of stamp duty is Rs. 2,500/- per sq. ft. In that case, whether the income tax department will treat the sale at the price adopted by registrar for the purpose of levy of stamp duty, though I had entered into agreement to sell the said property at the rate of Rs. 600/- per sq. ft? 2. What will be long term capital gain? 3. How to handle this problem? [saamir75@gmail.c...

TAX TALK-06.06.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “WHETHER INCOME TAX RETURN FILING IS COMPULSSORY EVEN IF NO TAX IS PAYABLE?” Query 1] Sir, Would you clear a few queries arising in our mind regarding filing Income Tax returns this financial year 2010 – 11 i.e., Assessment year 2011 -12: 1. We are senior citizens. Therefore our exemption limit is Rs. 2, 40,000/- 2. We can avail exemption u/s 80C for Rs. 1,20,000 /- 3. Therefore, our total exemption is Rs. 3, 60,000/- 4. We have already paid taxes (TDS& Advance tax) on our income which exceeded the above amount. Now the queries are: a. As senior citizens, do we need to file tax returns if we don’t ask for Refund? Is it mandatory? b. How do we show the proof of depositing Rs. 1,20,000/-to avail the exemption u/s 80C if we don’t submit Returns? Your advice: a. Should we file Tax Returns as those may be needed for a foreign trip, to facilitate in obtaining Visa? b. Is there any change in I/T Rule r...