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Showing posts from March, 2012

TAX TALK-02.04.2012-THE HITAVADA

TAX TALK-02.04.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“INCOME TAX: BUILDER TO DEMOLISH THE EXISTING HOUSE & RECONSTRUCTS FLATS” Query 1]We are in discussion with a builder to demolish the existing house & reconstruct flats on the same plot with an understanding that he gives us 2 flats in the building, one in my name and the other in my father’s name, plus some cash to my father. The possession of the Flats is likely to be given by the builder within 15 months from the date of agreement. However, to ascertain the economic viability vis-à-vis the tax liability of the project, please guide me on the following points:i.How to calculate the capital gain tax? We are at a very preliminary stage of discussions and yet to determine the cost of the existing property that the Builder may give as also the cost of Flats that he may charge us from.ii.Will the exemption u/s 54 (LTCG) be available to both of us by way of investment in Flats, if so, to what ext…

TAX TALK-02.04.2012-THE HITAVADA

TAX TALK-02.04.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“INCOME TAX: BUILDER TO DEMOLISH THE EXISTING HOUSE & RECONSTRUCTS FLATS” Query 1]We are in discussion with a builder to demolish the existing house & reconstruct flats on the same plot with an understanding that he gives us 2 flats in the building, one in my name and the other in my father’s name, plus some cash to my father. The possession of the Flats is likely to be given by the builder within 15 months from the date of agreement. However, to ascertain the economic viability vis-à-vis the tax liability of the project, please guide me on the following points:i.How to calculate the capital gain tax? We are at a very preliminary stage of discussions and yet to determine the cost of the existing property that the Builder may give as also the cost of Flats that he may charge us from.ii.Will the exemption u/s 54 (LTCG) be available to both of us by way of investment in Flats, if so, to what ext…

TAX TALK-26.03.2012-THE HITAVADA

TAX TALK-26.03.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“REMEDY IF THE TDS CERTIFICATE IS NOT ISSUED OR NOT REFLECTED IN 26AS” Query 1]I am a retired bank officer not drawing any pension since I opted for the PF option. I have deposited the terminal benefits i.e., PF, Gratuity, etc in cumulative fixed deposits. Interest with original deposits is refunded on maturity in a Public Sector Bank. I am not depositing any Form No. 15G/15H with the bank but let the bank recover TDS on interest earned by me. I have following queries: 1.Some of my deposits have matured and credited to my a/c after deduction of TDS on following dates viz01/11/2011, 08/11/2011, 30/11/2011, 13/12/2011, 23/02/2012, but the amount of TDS is not reflected in the Form 26AS in my PAN till date. Also the bank has not issued me the TDS certificate till date. Is there any rule under I.T. Act stipulating the time by which the TDS certificate is to be issued by the bank and the time limit within…

TAX TALK-19.03.2012-THE HITAVADA

TAX TALK-19.03.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“IS IT NECESSARY TO PURCHASE THE PROPERTY JOINTLY?” Query 1]I and my mother jointly owned a house in Nagpur. On 1st February, 2012 we sold this property for Rs. 40, 00,000/-. We both got Rs. 20,00,000/- each. My mother is a senior citizen aged about 78 years. Sir, my question is to save Capital Gain from this deal:1.Is it necessary to purchase a property jointly or can we purchase property individually?2.What is the time limit to purchase a property?3.Can we keep the amount in Fixed Deposit till we purchase a new house.?4.We are not interested in depositing the amount in Capital Gain Bond.
[Kundan Chauhan-ramdas.s@rediffmail.com]
Opinion:1.Exemption is admissible even if the property is purchased individually:
It is not at all necessary to purchase a joint property to claim an exemption from LTCG. By purchasing two separate property individually also, one can have an exemption from LTCG.2.Time limit to…

TAX TALK-12.03.2012-THE HITAVADA

TAX TALK-12.03.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“CLAIMING EXEMPTION U/S 54 & 54F SIMULTANEOUSLY FOR SINGLE PROPERTY PURCHASES” Query 1]Mr. X had two Property 1st a Residential Property (used for own residence) and another commercial building (rented to a Nationalized bank).1st property was sold in the financial year 2009-10 and 2nd property was sold in the financial year 2010-11 and then he build up just one Residential house with high (entire) Investment. Hence in order to save Tax on capital gain, can we claim exemption u/s 54 for the 1st house sold in the FY 2009-10 and u/s 54F for the commercial plot sold in the FY 2010-11 against the one house Built.In short, I want to know whether we can claim exemption under two different sections for two different years for the purchase of single residential property as we were required to sell both properties so that we can a better house. [Rohit Sharma- rohit4334@gmail.com]Opinion:The basic question …

TAX TALK-19.03.2012-THE HITAVADA