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Showing posts from December, 2013

“SAVING TAX ON LONG TERM CAPITAL GAIN- ISSUES INVOLVED”

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TAX TALK-23.12.2013-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
“SAVING TAX ON LONG TERM CAPITAL GAIN- ISSUES INVOLVED”
Query 1] I am presently residing in a house purchased from DDA in 1986 in the joint names of self and wife by also taking loan from the Bank. A case regarding my father’s residential property was decided by the Court in March, 2005 and property was divided by court in  3 equal shares – 1/3rd for my brother, 1/3rd for myself and 1/3rd for my father as my sisters relinquished their right in favor of my father. 1/3rd share of my brother was disposed off by him and after sale expired as well. My father who was residing with me has made a Registered Will of his 1/3rd share in my favor. My mother expired in 2002 and father in March, 2010. In this way, I became owner of 2/3rd share of that house (1/3rd mine share and 1/3rd my Father’s share by virtue of Will). Now, I have sold this 2/3rd portion of house for Rs. 29.99 Lacs with area approx. 50 sq. mts. and Sale …

“AMOUNT RECEIVED ON SURRENDER OF TENANCY RIGHT IS TAXABLE !”

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TAX TALK-16.12.2013-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
“AMOUNT RECEIVED ON SURRENDER OF TENANCY RIGHT IS TAXABLE !”
Query 1] A mother of my friend who is a widow seeks clarification/advice from you regarding income from ancestral property. As per the tax law, income received through disposal of ancestral property comes under Capital Gain Tax & to avoid Capital Gain Tax amount received through disposal of property should be utilized in purchasing of house or in construction of house. Her share after disposal is so small that no house can be purchased or can be constructed. Then, 1.How  to  save  Capital  Gain  Tax  on  such  amount ? 2.Can amount be invested in regular fixed deposits in Bank? 3.Can  whole  amount  or  part  of  it  can be  gifted  to  her son or  daughter? 4.Can  amount be utilized  by  her  for  day  to  day requirements  of  life? 5.If it is done so, then what will be the tax implication? She is a housewife & not coming under the bracket o…