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Ans: Hi
The approximate Long Term Capital Gain would be about Rs. 22.45 Lakh. Subject to all conditions of carry forward of losses being met, the loss of Rs. 23 Lakh brought forward could be set off against the long term capital gain

Ans: Hi
Assuming that the interest is out of deposit with an eligible institution viz., Bank, Coop Bank & Post Office, the threshold amount is Rs. 40,000 otherwise the threshold would be Rs. 5,000. If your interest is from the eligible institutions then you will need to speak with them.

Ans: This has been answered earlier

Ans: Hi Parameswaran
The reinvestment benefit as visualized in section 54 is for residential property purchased in India and not outside India, hence the property purchased in UK would not be considered as eligible reinvestment

Ans: Hi
If the individual is reinvesting her/his share of capital gain from sale of a residential property into another residential property, even jointly with another individual then if the amount of capital gain is reinvested then the person reinvesting the said capital gain amount would get the exemption

Ans: Hi Muthu
Gratuity is applicable even for employees of NGO and hence you would be eligible to get gratuity. However, i do not know if you have never claimed it over so many years, would you be eligible to claim it now. I would suggest that you speak with a lawyer practicing in this domain

Ans: Hi Mr. Krishnamurti
I have not understood your query as it does not bring out the facts clearly. Regardless, i would state in broad terms how the VRS tax exemption works.

Section 10(10C) of the Income Tax Act and Rule 2BA of the Income Tax Rules define the exemption of amount received on VRS and the conditions to be met. If you meet the criteria as laid down therein then you would be eligible to consider the exemption.

I did not understand your point on min 90 day notice period. Is that applicable to all employees opting for VRS or limited to you? I state this because VRS rules have to be common for all and there cannot be variations to the policy and different implementation to different classes of employees.

I guess you may need to take the full set of documents either to your CA or a lawyer to evaluate if there is any legal flaw in the manner of implementation of the VRS scheme.

Ans: Hi Mr. Alok
Yes you need to pay tax on the interest earned post the last contribution to the fund

Ans: Hi Rajiv
You may opt for the new tax regime to minimize your tax outgo there by freeing up your options to invest wisely instead of from tax saving perspective. You would need to chat with a financial planner (also available on Rediff Gurus) to understand the way forward on meeting your investment goals

Ans: Hi Natasha
Yes that is correct

Ans: Hi Shailendra
Assuming that you are referring to FY 2022-23, as your daughter was outside India for more than 182 days, her income in Germany would not be taxable in India. You need to note that she should not get the income credited in India in the first instance. She could deposit the income in Germany first and then remit it to her NRO or NRE account in India.

She needs to get her savings account in India redesignated as NRO account

Ans: Hi
The limit for remittance of funds out of India and its tax implication are independent of each other and should not be mixed. Likewise for a Indian resident, the limit for remittance under the Liberalised Remittance Scheme (LRS) is USD 250,000 however before remittance all applicable taxes have to be paid

Ans: Hi Dinesh
I do not understand why the financial year would be different for government employees. The taxation is always on income during the period April 1 of a year to March 31 of the subsequent year and there is no 13 month salary taxation concept

Ans: Hi
VPF would be under the specified limit of deduction of Rs. 1.50 Lakhs, so you need to check if the total amount of investment exceeds that threshold limit. If it does exceed then you will not get the deduction

Ans: Hi Naresh
This may depend on the year in which the Full & Final settlement calculation is done by your employer. If it is done in the FY 2023-24 and the Form 16 is issued in this year then you could claim the enhanced deduction limit

Ans: Hi Mahesh
I am presuming that you have a specified professional income and hence you have opted for the presumptive taxation u/s 44ADA.

Yes, you could opt for the presumptive taxation in FY 23-24

Ans: Hi
For better option with regard to the tax regime to be opted please click on the below link

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi
Please do not omit the income just because it is not visible in Form 26AS.

Ans: Hi
The eTDS returns are being filed by various institutions and would get updated fully in the coming week or so. In case you have the requisite details of income and TDS (along with the TAN of the institution) then you could prepare and file the return but remember to check the data again later and amend the return if required.

Ans: Hi V
Did not understand your question correctly. Assuming that you are asking that you would want to sell your existing house and reinvest in the under construction flat, here is the response.

You would need to get the possession of the house by reinvesting the capital gain portion from the sale of existing house within 3 years from the date of sale of the existing property.

Accordingly, as the possession is only in December 2027, you may breach the timeline if you sell your existing property now. Time your sale appropriately.

You would need to park the capital gain portion in Capital Gain Account Scheme (CGAS) account with any nationalized bank and transfer funds from that account based on construction linked payments

Ans: Did not understand the question Rajeev

Ans: Hi Dineshkumar
Yes you could claim the HRA benefit for the Vadodara rented house if you are opting for the old tax regime

Ans: Hi Mugalur
In case you are referring to standard deduction for salary then yes for the pension income the standard deduction would be available.

The other deductions stated by you would not be available under the new tax regime

Ans: Hi Bharat
You could check the comparison using the following link

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi Rashmi
You could use the following for the purpose of calculation of cost

1136 Bandhan Shares (2000 x 0.568) x Rs. 1044.37 (Gruh's grandfathered rate on 31-1-2018 rebalanced to the conversion proportion i.e. 593.20 x 1000 / 568) = Rs. 11,86,400

Ans: Hi Thomas
As the base year for Cost Inflation Index (CII) has been reset to 2001, you may need to get a valuation done through an approved valuer to identify the value as on April 1, 2001. If this value is higher than Rs. 2.98 Lakhs then you could use that as the cost.

As regards the general renovation amount spent, it may not be allowed to be added as cost of the property as generally tax officers are not dispensed to allow it.

W.R.T. your decision to reinvest in a ready possession flat within 2 years, please note that if this investment is extending beyond 6 months OR due date for filing your tax returns (whichever is earlier), you would need to open a Capital Gain Account Scheme (CGAS) account with a nationalized bank and park the capital gain amount in it for reinvestment.

Now answering your queries

Query 1 - If the capital gain amount does not exceed Rs. 2 Crores then you could reinvest in 2 residential units. This however is a one time option and cannot be used again in any other year.

Query 2 - Yes you could add their names but they would be treated as name-sake owners and for all purposes of taxation, you would be taxed singly.

Query 3 - You can add their name as proportionate owners to the value of their contribution. The taxation of income in that case would be based on their contribution

Query 4 - The answer to this would depend on the valuation report. Nevertheless, you could derive the indexed cost yourself by multiplying a factor of 3.48 to the cost. An example would be as follows:

Suppose the cost is Rs. 2.98 Lakhs
Indexed cost would be Rs. 2.98 Lakhs x 348 / 100 OR 2.98 Lakhs x 3.48 = Rs. 10.37 Lakhs

Ans: Hi Vivekanand

You must have informed the bank about his attaining majority. Please apply for a PAN first and thereafter link it with the aadhar. If there was no PAN itself available, there is no question of linking it.

After turning 18, your son would become the independent account holder and that would necessitate the KYC for him and accordingly, you would need to get his PAN now.

Ans: Hi Siju
The PPF interest is exempt from tax

Ans: Hi,
There are lot of ambiguities in your query. Certain questions that are pertinent are as follows:

Was the Rs. 17 Lakhs fully paid in 2002?
How was the possesion given in 2003 without registration and it was done only in 2016?
What was the proportion of payment that was made by you individually and your husband?

The answers to this query would change based on inputs to the above questions. However, i will try to give a generic response to your queries

Indexed Cost of Rs. 17 Lakhs - Rs. 56,34,286
Indexed Cost of Rs. 1.65 Lakhs - Rs. 2,17,500
Total Indexed Cost - Rs. 58,51,786
Sale Consideration - Rs. 95 Lakhs
Long Term Capital Gain - Rs. 36,48,214

Most critical point here is that this capital gain would be taxed in the hands of your husband and not you as he has gifted the property to you without any monetary consideration. This is based on the clubbing provisions of the Income Tax Act

Ans: Hi Sunil
Employer contribution to PF is done at 12% of the basic salary. Gratuity contributions generally are about 15 days salary for each completed year. PPF and Sukanya maturity amounts are not taxable

Ans: Hi

You mean you want to gift money to your child who has turned major (18 years). The gift transferred would not be taxable to the child and the clubbing provisions would not apply i.e. the income earned on this gifted money would not be taxable in your income.

Please remember to remit the money through regular banking channel and execute a gift deed for the same.

Ans: Hi Vijay

I am assuming that you are referring to sale of foreign shares held under ESOP grant held by an employee.

In case you have held the ESOP share for more than 24 months then it would be treated as Long Term asset. You could index the cost and any gain resulting from the calculation would be taxed at 20%

If the period of holding is shorter then the gain (if any) would be taxed at your slab rate.

Ans: Hi
Ignorance of law does not bring any relief to the flat owner. The penal consequences would apply in this case and the following provisions are applicable:

Penal Interest is applicable from the date on which the deduction was to be made. The rate of penal interest would be 1.5% p.m if the TDS was deducted but not paid and 1% p.m. if the TDS was not deducted.

Late Fee of Rs. 200 per day would be applicable from the due date for filing the TDS return in Form 26QB however this would be maximum upto the amount of TDS i.e. if the total TDS is say Rs. 1 Lakh and the late fee works out to Rs. 2 Lakhs then the late fee would be limited to Rs. 1 Lakh.

The above two amounts have to be paid along with the TDS amount while filing the Form 26QB

In addition to the above, if the TDS return has not been filed within a year then the Tax Officer could levy a penalty which could range between Rs. 10,000 (minimum) and Rs. 1 Lakh (maximum)

Ans: Hi
You may have a long term capital gain of about Rs. 6.70 Lakhs. Suggestions to avoid paying any tax on this gain would be to pay towards the construction of the new house. This would mean that you may need to sell your house before you take possession of the new house in December 2023 and use the sale consideration to pay to the builder to the extent of approx Rs. 6.70 Lakhs to make it eligible as reinvestment in a new under construction property. This cannot be the other way round i.e. you cannot pay full amount to the builder and take possession and thereafter sell the old house.

If you need the house to stay till the possession of the new property then you could try for a rental arrangement with the buyer of your old house.

Ans: Hi Alok
Buying a plot is not considered as reinvestment and eligibility is on buying or constructing a residential house.

In this case if you construct a house on the plot then you could map the capital gains from the sale of the ancestral house against the cost of construction of the house on the plot.

Also, as you have sold the house in March 2023, you would need to open a Capital Gain Accounts Scheme (CGAS) account with any nationalized bank on or before the due date for filing your tax return. The deposit of the capital gain amount in the CGAS account would be treated as reinvestment for the moment.

You need to note that this CGAS account amount has to be utilized for construction within 3 years from the date of sale of the ancestral house.

In case you are not depositing the amount in CGAS account or reinvesting in any eligible assets before filing tax return (of course before due date) then you would need to pay tax on the capital gain portion

Ans: Hi Mohtashim
Would suggest that use the following link calculator to check the better option. You would need to keep the HRA exemption readily available to work out the benefit

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi

As not much details are available, would suggest that you check the best option using the tax calculator by clicking the following link

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi Debhashish,
Assuming that the purchase was done in FY 2003-04, the indexed cost of acquisition is approximately Rs. 13,56,000 and accordingly the long term capital gain is approximately Rs. 61,44,000.

Considering the above, gift to your sister could be Rs. 13.56 Lakhs and reinvestment in new residential property to achieve Zero tax status would be Rs. 61.44 Lakhs

Ans: Hi Shakir Madam
Yes, the standard deduction is available to be claimed

Ans: Hi Ashwini
Indexation benefits would not be available to any debt fund, which would also include Gold ETF, Fund of Funds, Conservative Hybrid Funds, Multi Asset funds where the equity exposure is less than 35%

Ans: Hi Lokesh
Please try filing a rectification to the ITR filed for AY 2022-23 and file the Form 10E before you file the rectification.

Ans: Hi Ravinder
While the eligibility of tax deduction of the remuneration paid to a working partner in a LLP would be governed under the limits prescribed u/s 40(b) of the Income Tax Act, the partner may withdraw money and the same would be recorded as "Drawings" in the books of the LLP.

This money that is withdrawn from the LLP could be used for personal expenses of the Partner

Ans: Hi Naren
The requirement to file tax returns in India is based on your residential status and the volume of income. Hence, if you are currently a resident of India (based on number of days of stay in India) and your income is exceeding the threshold limit mandating the filing of tax returns then you definitely need to file the same.

There would be a gap in the period covered for filing tax returns viz., say India's financial year is between April 1, 2023 to March 31, 2024 whereas USA follows the calendar year concept i.e. January 1, 2023 to December 31, 2023.

When you prepare your data for USA, you would need to realign the income and the tax to validate the tax credit that could be claimed in USA

Ans: Hi,

I am presuming that you want to clarify if the capital gain tax be avoided if the reinvestment of old 1BHK flat sale could be mapped against purchase of 2 BHK flat.

The reinvestment conditions specify that you could off-set the capital gain arising out of sale of a residential property by purchasing or constructing a new house within the stipulated timeframes.

If you have bought a ready possession property (new flat) then the timelines are 1 year back or 2 years forward from the date of sale of the old flat.

If you have bought an under construction flat then the timelines are 3 years forward from the date of sale of the old property.

An example would be as follows:

Purchase of 2BHK flat is say June 1, 2022 and date of sale of 1BHK is say May 1, 2023 - You could map the capital gains from 1BHK against the purchase of 2BHK ready possession flat. Similarly, if the purchase of the 2BHK flat was at anytime after May 1, 2023 but within 2 years from this date, then again the exemption would be allowed.

In the case of under construction property, all payments made to the builder after May 1, 2023 would be allowed upto a period of 3 years

Ans: Hi Rajesh
Standard Deduction of Rs. 50,000 under the head salary, section 80CCD(2) for Employer’s Contribution to Employee NPS Accounts. Also, if you have a home loan on a house that has been rented, then the interest on the home loan is available as deduction

Ans: Hi,
Corporate NPS u/s 80CCD(2) will be relevant in checking the efficacy of options. If we consider that Corporate NPS is outside the Rs. 30 Lakhs and assuming that 80C deduction is Rs. 1.50 Lakhs then the new tax regime is best for you.

You could check the comparison using the following link

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi Krishnaswami
50% of the balance could be withdrawn provided you have 5 continuous years of contribution

Ans: Hi Rajeev
Salary is taxable on receipt or due basis, whichever is earlier. Hence technically you are liable to be taxed for the salary in the year it was due to be received regardless of the fact that it was not actually paid to you.

In case you do not have any other source of income, this 5 months salary would not attract any tax under either of the tax regimes so you could go ahead disclose this income in the current year and not in 2024

Ans: Dear Mr. Mugalur
The slab rate under the old tax regime for super senior citizen has not been changed and remain at 20% for income in the range of Rs. 5 Lakhs above to Rs. 10 Lakhs.

In case you are opting for the old tax regime all deductions that were available earlier are still available to you but that would not be the case if you opt for the new tax regime, where the deductions stated by you will not be available

Ans: Hi
Generally all financial institutions have a defined policy on investments held by minors and what should be the process of updation of system on such minors attaining the age of majority.

You could check with the institution on their policy and seek appropriate redressal to this issue