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Mihir

Mihir Tanna  |819 Answers  |Ask -

Tax Expert - Answered on Mar 15, 2023

Mihir Tanna has more than 10 years of experience in direct taxation, including filing income tax returns.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
subhash Question by subhash on Mar 03, 2023Hindi
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My father bought a land 0f of 5000 sft for Rs Rs 3500 in 1959.He constructed a 1500sft house on the land in 1967 for Rs 30000 . He passed away in 1986.Self and mother became owner.Mother passed away in 2011and Ibecame the owner. The building and land together was given to a builder in 2015 for construction of flats.As per the agreement I have received 4 flats and construction was completed on 27.11.2021 and handed over to me. Now I have sold one flat (out of four)for 18 lakhs. I want to know whether it will be short or long term capital gain ? I do not want to re invest in property and want to pay appropriate amount of tax .Kindly guide me with procedure.Whether I need to open a separate account in bank and park this money till I pay tax? Thanks. s guha.

Ans: For taxation on redevelopment, there was amendment from 1.4.2018. Before said amendment, when property is transferred to builder for development, capital gain chargeable to tax. I understand that you have not paid any tax in the year in which property is transferred to builder, accordingly, it is advised to take proper consultancy from tax consultant.
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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Mihir

Mihir Tanna  |819 Answers  |Ask -

Tax Expert - Answered on Nov 17, 2022

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I am a senior citizen retired pensioner. I had intention to sell my both properties located in one town and to invest in one property in another town where I wanted to settle in my retired life. I wanted that the sale proceeds of my two properties should be almost same as the purchase value of a single property in another town to settle there. I had bought a property in 2015 at Rs 40 lakh in my single name and sold in Feb 2022 at Rs 52 lakh. The buyer deducted 1% TDS and filled in form 26QB and I got form 16(B) from buyer and details of TDS are seen reflected in my Form-26AS. Thereafter, my 2nd property that I had bought @Rs 7.3 lakh 20 years back, was attempted to dispose, but did not materialise till now.  Anyway, I bought a 5-yr-old jointly owned property from a couple at Rs 80 lakh in June 2022 and deducted 1% TDS (@0.5% from each owner), filled in Form 26QB and provided form 16(B) to the sellers.  So, I invested the sale proceeds of my 1st house 'within a year' of its disposal, in buying a house from Long Term Capital Gain point of view. My IT Return for AY 2022-23 was filed in July 2022 and it got approved. The 1% TDS deducted by buyer on my 1st property sale got refunded/ adjusted.  I am still trying to sell my 2nd property 'within one year' of buying the June, 2022 property. I want to do this to take benefit of Long Term Capital Gain Tax. I want to know whether I am going to get the IT benefit by selling my 2nd property 'within one year' of purchase of my June 2022 property ? I am more eager to know how sale of 1st property in financial year 2021-22 (Feb.'22), purchase of a property in FY 2022-23 (June'22) and again sale (proposed) of 2nd property, (all within 2 years from LTCG point of view) are shown in my next IT Return (AY2023-24).  I am eager to hear from you, Sir!
Ans: As you must be aware, if person wants save tax on capital gain, person should acquire another residential house within a period of three years from the date of transfer of the old house or should construct a residential house, within a period of one year before or two years after the date of transfer of old house.

With effect from Assessment Year 2021-22, the benefit in respect of investment made in two residential house properties is available. The exemption for investment made, by way of purchase or construction, in two residential house properties shall be available if the amount of long-term capital gains does not exceed Rs 2 crore.

If assessee exercisesoption, he shall not be entitled to exercise this option again for the same or any other assessment year.

Benefit will be lower of following:

  • Amount of capital gains arising on transfer of residential house; or
  • Amount invested in purchase/construction of new residential house property

If till the date of filing the return of income, the capital gain arising on transfer of the house is not utilised (in whole or in part) to purchase or construct another house, then the benefit of exemption can be availed by depositing the unutilised amount in Capital Gains Deposit Account Scheme in any branch of public sector bank, in accordance with Capital Gains Deposit Accounts Scheme, 1988.

So in your case, if you satisfy all the prescribed conditions (including acquiring new property within 3 years, depositing unutilised amount in capital gain deposit account and disclosure is made regarding same in ITR of AY 2022-23 & AY 2023-24); you will get IT benefit.

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Tejas

Tejas Chokshi  |126 Answers  |Ask -

Tax Expert - Answered on May 29, 2023

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I have purchased a land of Rs. 2.5 Lacs in 2001 and start constructions on that in 2005 with 2 floors and also completed the constructions with in 5 months. Taken a loan from DHFL of Rs. 5 Lac and also repaid in next 2-3 years. Just two years back also extended one floor. Now there is 3 complete floor and one half floor is there. If today I sell this property (which is approx 80 sqyds plot size) in 70 lacs then how much capital gain tax (if applicable) I need to pay. Pl. also note that we don't so much documents for constructions related and total exp. is around 25-30 Lacs on that.
Ans: To calculate the capital gains tax on the sale of your property, we need to consider the acquisition cost, the cost of improvement, and the sale proceeds. Let's break down the calculations:

Acquisition Cost:
The acquisition cost is the amount you paid for the land in 2001, which is Rs. 2.5 lakhs.

Cost of Improvement:
The cost of improvement includes the expenses incurred for construction and any subsequent additions or extensions made to the property. In this case, it includes the construction of the initial two floors, the extension of one floor, and any other related expenses. You mentioned that the total expenses were around 25-30 lakhs. Let's assume the cost of improvement is Rs. 28 lakhs.

Indexed Cost of Acquisition and Improvement:
To adjust the acquisition cost and cost of improvement for inflation, we need to calculate the indexed cost. The indexed cost is calculated using the Cost Inflation Index (CII) provided by the Income Tax Department. The CII for the relevant years can be found on the Income Tax Department's website.

Let's assume the CII for the year 2001-2002 was 100 and for the current financial year, it is 317.

Indexed Cost of Acquisition = Acquisition Cost × (CII for the year of sale/CII for the year of acquisition)
Indexed Cost of Acquisition = Rs. 2.5 lakhs × (317/100) = Rs. 7,92,500

Indexed Cost of Improvement = Cost of Improvement × (CII for the year of sale/CII for the year of improvement)
Indexed Cost of Improvement = Rs. 28 lakhs × (317/100) = Rs. 88,76,000

Capital Gain:
To calculate the capital gain, deduct the indexed cost of acquisition and the indexed cost of improvement from the sale proceeds.
Capital Gain = Sale Proceeds - (Indexed Cost of Acquisition + Indexed Cost of Improvement)
Capital Gain = Rs. 70 lakhs - (Rs. 7,92,500 + Rs. 88,76,000)
Capital Gain = Rs. -26,68,500 (Assuming the indexed cost is higher than the sale proceeds)

Since the calculated capital gain is negative, it means there is no capital gain tax applicable in this case. This is because the sale proceeds are less than the indexed cost of acquisition and improvement.
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Sushil

Sushil Sukhwani  |326 Answers  |Ask -

Study Abroad Expert - Answered on Apr 29, 2024

Asked by Anonymous - Apr 27, 2024Hindi
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I am pursuing 12 in commerce. Please guide me should I pursue B.Com or BBA. I should study in India or abroad
Ans: Hello,

First and foremost, thank you for getting in touch with us. I am glad to hear that you are currently pursuing your 12th grade in the Commerce field. To answer your question first, I would like to let you know that we only deal with overseas education. Concerning your query as to whether you should pursue a Bachelor of Commerce (B.Com) or Bachelor of Business Administration (BBA), I would like to tell you that your interests, the abilities you intend developing, and your professional objectives, play a key role in deciding between pursuing a B.Com and BBA. Subjects pertaining to accounting, business law, finance, and economics are primarily covered in the Bachelor of Commerce (B.Com.) program. On the contrary, a comprehensive understanding of the various facets of business management, viz., human resources, finance, marketing, and operations is offered in a Bachelor of Business Administration (BBA) program.

If the technical aspects of economics, finance, and accounting appeal to you, B.Com could be a better option. Nevertheless, if learning about management principles, business strategy, and leadership skills, is what interests you, then BBA could be a wiser choice.

Concerning studying overseas, I would like to let you know that it can be an excellent chance to become acquainted with diverse cultures, educational systems, and perspectives. Remember that studying overseas can widen your horizons, broaden your international outlooks, and offer meaningful experiences that can enhance both your personal and professional life.

When deciding, I would recommend that you take into account variables viz., the standing of the universities you intend enrolling in, the courses they provide, potential employment possibilities, and your monetary circumstances. Moreover, in order to make an educated choice, I would suggest that you look into the available scholarships as well as think about the long-term advantages of studying overseas. Lastly, I would recommend that you select the course that best resonates with your interests, ambitions, and aspirations.

For more information, you can visit our website.
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Kanchan

Kanchan Rai  |172 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Apr 29, 2024

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Dear madam , I was married since 14 years and live ng separately after marrige last 14 years due to both we are working professionals and my wife lost his father before our marriage and she needs to take care of her mother and family For that after marriage we leave separately and we was a great understanding and we have a boy after 8 years of marriage ,now he is also 6.5 years in age and doing good in education I only send money fornhis education and when ever wife needs ,we did not have regular sex as we meet frequently in a year about 3-4 months back. Now last one year almost I am abroad from India due to service transfer to Malyasia and feeling our relationship is no more working as my wife stop responding my calls and clearly told he is not interested on me.as she is very upgraded in her carrier and feeling disturbed about my calls ....and not even return call when she free of work...I am suppose to do what ? Please suggest.
Ans: Hello Suman,
It sounds like there have been significant changes in your relationship dynamics, especially with your wife's focus on her career and the physical distance between you due to your work in Malaysia. Even though your wife may not be responding to your calls, it's important to continue trying to communicate with her. Express your concerns and feelings openly and honestly, but also try to listen to her perspective without judgment.Try to understand your wife's perspective and the reasons behind her behavior. It's possible that she may be feeling overwhelmed with her responsibilities or experiencing other challenges that are affecting her responsiveness. Consider seeking the assistance of a marriage counselor or therapist who can facilitate communication and help both of you work through your issues. A neutral third party can provide guidance and support in resolving conflicts and rebuilding your relationship. Reflect on what you want for your future and what you're willing to do to salvage your marriage. Consider your own needs and priorities, as well as those of your son. If possible, try to spend quality time together when you visit India or when your wife can join you in Malaysia. Building positive experiences together can help strengthen your bond and rekindle your connection. Lean on friends, family, or support groups for guidance and emotional support during this challenging time. Having a strong support system can help you navigate through difficult situations.Take care of yourself emotionally, physically, and mentally. Focus on activities that bring you joy and fulfillment, and don't hesitate to seek professional help if you're feeling overwhelmed or distressed.
Ultimately, rebuilding a relationship takes time, effort, and commitment from both parties. It's important to approach the situation with empathy, patience, and an openness to change.
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Kanchan

Kanchan Rai  |172 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Apr 29, 2024

Asked by Anonymous - Apr 28, 2024Hindi
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Dear madam , My name is Suman ..44+ years I was married since 14 years and live ng separately after marrige last 14 years due to both we are working professionals and my wife lost his father before our marriage and she needs to take care of her mother and family For that after marriage we leave separately and we was a great understanding and we have a boy after 8 years of marriage ,now he is also 6.5 years in age and doing good in education I only send money fornhis education and when ever wife needs ,we did not have regular sex as we meet frequently in a year about 3-4 months back. Now last one year almost I am abroad from India due to service transfer to Malyasia and feeling our relationship is no more working as my wife stop responding my calls and clearly told he is not interested on me.as she is very upgraded in her carrier and feeling disturbed about my calls ....and not even return call when she free of work...I am suppose to do what ? Please suggest.
Ans: Hello Suman,
It sounds like there have been significant changes in your relationship dynamics, especially with your wife's focus on her career and the physical distance between you due to your work in Malaysia. Even though your wife may not be responding to your calls, it's important to continue trying to communicate with her. Express your concerns and feelings openly and honestly, but also try to listen to her perspective without judgment.Try to understand your wife's perspective and the reasons behind her behavior. It's possible that she may be feeling overwhelmed with her responsibilities or experiencing other challenges that are affecting her responsiveness. Consider seeking the assistance of a marriage counselor or therapist who can facilitate communication and help both of you work through your issues. A neutral third party can provide guidance and support in resolving conflicts and rebuilding your relationship. Reflect on what you want for your future and what you're willing to do to salvage your marriage. Consider your own needs and priorities, as well as those of your son. If possible, try to spend quality time together when you visit India or when your wife can join you in Malaysia. Building positive experiences together can help strengthen your bond and rekindle your connection. Lean on friends, family, or support groups for guidance and emotional support during this challenging time. Having a strong support system can help you navigate through difficult situations.Take care of yourself emotionally, physically, and mentally. Focus on activities that bring you joy and fulfillment, and don't hesitate to seek professional help if you're feeling overwhelmed or distressed.
Ultimately, rebuilding a relationship takes time, effort, and commitment from both parties. It's important to approach the situation with empathy, patience, and an openness to change.
(more)
Kanchan

Kanchan Rai  |172 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Apr 29, 2024

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Hi, I have a divorcee daughter aged 45 whose unpleasant and quarrelsome behavior is a constant source of misery and headache for whole of the family. Her marriage could not go beyond 2 months as her in-laws turned out to be greedy, troublesome and also found involved in some fraudulent activities with a few police cases against them -- which forced us to seek divorce. I may add that my daughter ever since she was 13 or 14 yrs became a little self-willed and considered her to be always right in action and thought in front of parents or any one else. This has become very serious now. She is not at all open to any kind of reasoning or discussion. If you always act, think or do as per her wish, it is ok otherwise she will start fighting on any thing or every thing. Her attitude of selfishness and always finding faults with other family members including parents is spoiling the peaceful atmosphere of the house. Expecting any kind of adjustment from her is asking for the moon. Kindly advise.
Ans: Dear SN,

I can understand how challenging it must be to deal with your daughter's behavior. It's concerning that she's been displaying this attitude since she was young and that it's causing such turmoil within your family.

Consider seeking the help of a family therapist or counselor who specializes in dealing with family conflicts. A professional can provide an objective perspective and offer strategies for improving communication and resolving conflicts.It's important to establish clear boundaries with your daughter regarding her behavior. Let her know what behaviors are unacceptable and what consequences will follow if those boundaries are crossed.
Encourage Open Communication: Even though your daughter may be resistant to discussion, continue to encourage open communication within the family. Let her know that you're willing to listen to her perspective and work together to find solutions. Instead of solely focusing on her negative behavior, try to reinforce positive behaviors when you see them. Praise her when she acts respectfully or cooperatively, and try to reinforce those behaviors. Show your daughter how to communicate effectively and resolve conflicts peacefully by modeling those behaviors yourself. Avoid getting drawn into arguments or confrontations, and instead, try to remain calm and rational.If your daughter is open to it, encourage her to seek therapy on her own. A therapist can help her explore the underlying reasons for her behavior and develop healthier coping mechanisms.
Encourage Self-Reflection: Encourage your daughter to reflect on her behavior and its impact on herself and others. Help her recognize the importance of empathy and understanding in maintaining healthy relationships.
It may take time and patience, but with consistent effort and support, there is hope for improvement. Remember to take care of yourselves and seek support from other family members or friends if needed.
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Sushil

Sushil Sukhwani  |326 Answers  |Ask -

Study Abroad Expert - Answered on Apr 29, 2024

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My son is M.S. general surgery from MGM UNIVERSITY MUMBAI.He has done oncology fellowship in Nashik Under Dr.Nagarkar.He is in practice at Beed,near Solapur.How he will be able able to get extra training in USA In oncology?Dr.s.y.Jadhav
Ans: Hello Satyawan,

To begin with, thank you for contacting us. I am happy to hear that your son has pursued his Master of Surgery in General Surgery from MGM University, has done oncology fellowship in Nashik, and is practicing at Beed. To answer your question first, I would like to tell you that in order to pursue additional training in oncology in the USA, there are a few steps that your son will require to follow:

Firstly, I would suggest that your son conducts a comprehensive study on oncology fellowship programs in the USA. Remember that the USA offers a number of well-regarded programs, and thus, your son should look for those programs that best resonate with his interests and professional objectives. Next, remember that the prerequisites for each fellowship program will be unique. A residency in internal medicine or an associated field, viz., general surgery, is generally required, which your son has already fulfilled. Particular tests viz., the United States Medical Licensing Examination (USMLE) may be demanded by certain programs. In addition, your son may also be required to prove his fluency in the English language through appearing for tests viz., the IELTS or TOEFL. Upon finding relevant programs, I would suggest that your son applies directly to them. Bear in mind that for the majority of medical disciplines, this generally entails submitting an application via a centralized system viz., ERAS (Electronic Residency Application Service). If your son has secured admission to a fellowship program, as the next step, in order to train in the USA, he would be required to acquire the necessary visa. For medical trainees, the J-1 visa is frequently used. Relocating to a different country for training calls for meticulous planning. So as the next step, your son will need to make arrangements for lodging, and travel, as well as make sure all the paperwork is in place. Once everything is in order, your son can then start his oncology fellowship training in the USA. Practical clinical experience, research, and academic endeavours are generally entailed in this.

In order to enhance his chances of obtaining a fellowship role, I would suggest that your son conducts an all-round study on programs, comprehends their prerequisites, and drafts a compelling application. Moreover, he should get in touch with and obtain guidance from instructors or colleagues who have followed comparable paths which can prove beneficial.

For more information, you can visit our website.
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Anu

Anu Krishna  |830 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Apr 29, 2024

Asked by Anonymous - Apr 17, 2024Hindi
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Relationship
Hi, I’m a 29 year old working woman. My husband who is 36, left his job 2 years ago just after my child was born. Since then he did not put much efforts to get another job and I’m only taking care of all the financial responsibilities. Whenever I ask him about job, he learns some courses online and then stops learning after few days giving some excuses. This has happened several times. He spends too much of my income even on small things saying he wants best quality products only. Almost everyday he asks me to buy some products or outside food and gets angry if I reject. Myself or my in-laws are not able to force him to get a job because he has anger issues and becomes verbally abusive very quickly. Even my parents are scared of his anger so not able to talk to him regarding his job. I feel very frustrated everyday since me or my family is not able to do anything about this, how do I deal with him?
Ans: Dear Anonymous,
It's great as a partner to support home and your spouse when there's a need. BUT now, you seem to have a lazy man oops boy to take care of now. Kindly stop doling out money for his pleasures. Let him earn and do his bit for the family. He's just getting used to putting his legs up and taking a very long break which he doesn't intend to come out of. It's a great habit and he's enjoying the convenience of it all.
He also needs a push out of this laziness the root cause of which can be identified by an expert; so kindly seek help so that you are not looking after another baby other than yours. Act soon...

All the best!
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Career

Career Coach  |35 Answers  |Ask -

Workplace Expert - Answered on Apr 29, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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Hi rediffguru, I am a 35-year-old working at a global advertising agency in Mumbai. In the past 12 years, I have consistently delivered successful campaigns and demonstrated strong leadership skills. However, despite my track record of success, I was passed over for a promotion to director of marketing. How can I take this up with my supervisors and HR?
Ans: Hey there, you marketing maestro! First off, major props to you for consistently smashing it in the advertising world for over a decade. Your track record of successful campaigns and leadership skills speak volumes about your talent and dedication.

Now, about that promotion snub—ouch, that stings! But fear not, my friend. It's time to roll up those sleeves and tackle this head-on.

Start by setting up a meeting with your supervisors and HR. Prepare a little arsenal of your achievements—maybe pull together some stats on campaign performance, client testimonials singing your praises, or even awards you've snagged along the way. Numbers don't lie, and they'll help paint a vivid picture of your impact.

Now, let's add a dash of strategy to the mix. Instead of just listing off your accomplishments, weave them into a compelling narrative. For instance, highlight that time when you spearheaded that viral social media campaign that boosted brand engagement by 200%. Or recall the project where your innovative ideas led to a record-breaking sales increase.

But don't stop there. Paint a picture of your vision for the future. Share your insights on emerging marketing trends and how you plan to leverage them to drive even greater results for the company. Show them that you're not just a top-notch marketer—you're a strategic thinker with big dreams and the skills to make them a reality.

And remember, even if this particular promotion didn't pan out, it's not the end of the road. Keep hustling, keep innovating, and keep believing in yourself. Opportunities are like buses—there's always another one coming. So buckle up, because your journey to success is far from over!
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