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Mahesh

Mahesh Padmanabhan  |124 Answers  |Ask -

Tax Expert - Answered on May 05, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more
Asked by Anonymous - Apr 24, 2023Hindi
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We bought a flat in 2002 for 17L possession of which was given in 2003. However, the registration (registration fees about 1.65L) was done in 2016, in my husband's name. My husband transferred the property to me via a gift deed in 2018. I am selling this property this year (2023) for 95L. What is the LTCG on this property on which I have to pay tax? What will be the date of acquisition and cost of acquisition to be considered on which indexation is to be done?

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
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8869 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Asked by Anonymous - Apr 21, 2024Hindi
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I am a NRI, I booked a flat for Rs 60 Laks in Nov 2009, paid the builder in EMIs through bank loan and took possession in Nov 2011, now intend to sell (on sale will get say Rs 1.2 Cr) this flat say by 1.7.2024 and buy a new flat (say agreement in Dec 2024) costing Rs 1.8 Cr again through bank loan and possession will be in Oct 2027; now what will be my LTCG tax applicability for the sale of old flat and purchase of new flat. I will adjust Rs one crore from sale of old flat proceeds with the new flat buying; both the properties are in Hyderabad/India.
Ans: LTCG Tax Applicability for Your Scenario
Based on the information you provided, here's how LTCG tax will likely apply to your situation:

Old Flat Sale:

You booked the flat in Nov 2009 and took possession in Nov 2011. Since the sale will happen after 2 years from possession (Nov 2011), it qualifies as Long-Term Capital Gain (LTCG).
LTCG on the sale of the old flat will be calculated as follows:
Sale consideration (estimated): Rs 1.2 Cr
Cost of acquisition (including stamp duty, registration charges etc. incurred in 2009): Let's say Rs 65 Lakhs (approximate figure, you'll need the actual amount)
LTCG = Rs 1.2 Cr - Rs 65 Lakhs = Rs 55 Lakhs
Tax on LTCG:

There are two ways to potentially reduce or eliminate your LTCG tax liability:

Section 54: This section allows exemption of LTCG on the sale of a residential property if the capital gains are invested in a new residential property within one year before or three years after the sale. In your case, since you plan to buy a new flat with some of the proceeds (Rs 1 Cr) within the prescribed timeframe (agreement in Dec 2024, which falls within 3 years of the sale in July 2024), you can potentially claim exemption under Section 54 for a portion of the LTCG (up to Rs 1 Cr).

Capital Gains Tax with Capital Gains Bonds (Section 54EC): If the investment in the new flat falls outside the window for Section 54, you can explore Section 54EC. This section allows investing LTCG in specific government bonds within 6 months of the sale to get exemption. However, the bonds typically have a lock-in period of 3 years.

New Flat Purchase:

The purchase of the new flat itself won't have any tax implications unless you decide to sell it in the future.

Important Points:

The actual cost of acquisition for the old flat will be crucial for calculating the exact LTCG amount.
Consult a tax advisor for a more precise assessment of your tax liability considering all the details and claiming exemptions effectively. They can advise you on the best approach based on your specific situation (e.g., Section 54 vs. 54EC).

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

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I cleared jee adv and am confused about taking ECM IIT Delhi or ECE IIT Roorkee/Guwahati/Kharagpur
Ans: Choosing between ECM (Electrical Engineering) at IIT Delhi and ECE at IIT Roorkee/Guwahati/Kharagpur hinges on priorities:

Placement Consistency: IIT Roorkee ECE leads with 85% placements (2024) and robust roles in embedded systems/AI, followed by IIT Guwahati (85% placements, Intel/Qualcomm roles) and IIT Kharagpur (87.05% placements, semiconductor focus). IIT Delhi’s ECM lags at 55% placements (2024), though its alumni network and Delhi’s tech ecosystem offer broader opportunities.

Curriculum: IIT Delhi’s ECM blends power systems and electronics with interdisciplinary projects, while Roorkee/Guwahati/Kharagpur ECE emphasize VLSI, telecommunications, and AI/ML with specialized labs.

Research: IIT Delhi’s Centre for Automotive Research (Hyundai EV collaboration) and 5G labs suit R&D aspirants. Kharagpur’s E&ECE excels in quantum technologies, and Guwahati integrates nanotechnology.

Infrastructure: IIT Delhi’s modern labs and Delhi’s industry access contrast with Roorkee/Kharagpur’s established campuses and Guwahati’s growing facilities.

Location: Delhi offers proximity to startups/MPCs, while Roorkee/Kharagpur provide quieter academic environments.

Higher Studies: IIT Delhi’s global reputation aids MS/PhD applications, whereas Kharagpur’s research output (NIRF #5) strengthens academia pathways.

Faculty: All institutes have seasoned faculty, but Delhi and Kharagpur lead in industry-funded projects.

Alumni Network: Delhi and Kharagpur alumni dominate core tech leadership roles; Roorkee/Guwahati networks favor PSUs and startups.

Internships: Delhi’s location ensures diverse internships, while Guwahati/Roorkee partner with regional industries (e.g., oil, energy).

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Prioritize IIT Roorkee ECE for placements and specialization, IIT Delhi ECM for research/global opportunities, or IIT Kharagpur E&ECE for balanced rigor and innovation. All the BEST for your Admission & a Prosperous Future!

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Career Counsellor - Answered on Jun 08, 2025

Asked by Anonymous - Jun 06, 2025
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Namaste, my daughter got 410000 ranking in kcet, 86% in Pu board,her percentage in PCM is 85,she wants to join for CSE core pl. advice us
Ans: With a KCET rank of 410,000, securing CSE core through KCET counselling in Karnataka is highly unlikely, as top and mid-tier colleges (e.g., RVCE, PES, MSRIT) have cutoffs below 50,000 for CSE. However, lesser-known private colleges or newer institutes with vacancy-driven cutoffs in later rounds may offer limited opportunities. Below are 15 colleges (based on KCET seat matrices and vacancy trends) that might consider such ranks for CSE, though admission is not guaranteed and may require management quota or direct admission:

East-West College of Engineering, Bangalore

Cambridge Institute of Technology, Bangalore

SKSJT Institute of Engineering, Bangalore

Rajeev Institute of Technology, Hassan

Ghousia College of Engineering, Ramanagara

Bheemanna Khandre Institute of Technology, Bhalki

Anjuman Institute of Technology, Bhatkal

Srinivas University, Mangalore

Bearys Institute of Technology, Mangalore

HKBK College of Engineering, Bangalore

Global Academy of Technology, Bangalore

Sapthagiri College of Engineering, Bangalore

New Horizon College of Engineering, Bangalore

Acharya Institute of Technology, Bangalore (non-core branches may have vacancies)

SJB Institute of Technology, Bangalore

Key Considerations:

Management Quota: Explore direct admission via management quota in private colleges, though fees are higher.

Branch Flexibility: Consider related branches like IT, AI/ML, or Data Science if CSE is unavailable.

State-Level Alternatives: Apply for Karnataka state diploma lateral entry (after polytechnic) or reappear for KCET.

Institutional Reputation: Prioritize colleges with NBA/NAAC accreditation and placement records (e.g., MVJ College, CMRIT).

Final Recommendation:
Opt for direct admission via management quota in private colleges like Acharya IT or New Horizon, balancing affordability and infrastructure. If CSE is non-negotiable, reappearing for KCET or exploring diploma lateral entry pathways may yield better long-term outcomes.

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Given her academic profile and rank range:
She should consider applying to colleges where the cutoff is within her reach—primarily those accepting ranks up to about 1 lakh.
She can also explore government quota seats or management seats which sometimes have different criteria.
It’s advisable to focus on reputed private universities like Reva University or NMAM Nitte that offer good infrastructure and placement. All the BEST for your Daughter's Admission & a Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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