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Mihir Tanna  |977 Answers  |Ask -

Tax Expert - Answered on Nov 10, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
rajesh Question by rajesh on Nov 10, 2022Hindi
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I am a NRI and recently sold my apartment in Bangalore and have few questions on computation of LTCG tax.

1. To calculate ‘cost of acquisition” should I include stamp duty which I had paid?

2. I had to travel to India to complete the sale paperwork and can I deduct this as expense incurred exclusively for transfer?

3. Is the entire amount (less than 50L) invested in 54EC eligible for deduction?

Ans: With reference to the query of stamp duty, yes, it can form part of the cost of acquisition. However, you must be aware that stamp duty paid at the time of purchase is allowed as deduction u/s 80C. Thus, an argument can be raised that if it is added to the cost of acquisition, it will result in double deduction.

With reference  to travel expenses, in my view you should not claim said expenses as Expenditure incurred are not wholly and exclusively in connection with transfer of capital asset.

With reference to investment in bonds specified in Sec 54EC, NRIs are not eligible to invest in certain specified government bonds.

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  |7365 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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Anu

Anu Krishna  |1413 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 28, 2024

Asked by Anonymous - Dec 27, 2024Hindi
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Relationship
I live in a joint family with my brother and parents. I’ve been having a hard time managing my relationship with my bhabhi (sister-in-law). We live in the same house, and things have been tense lately. I’ve always tried to be polite and respectful, but there are constant little misunderstandings between us, and it’s starting to affect my peace of mind. We both want to keep things cordial for the family’s sake, but it feels like there’s always some tension whenever we interact. The problem is, I tend to get defensive whenever she says something I don’t agree with, and I know it’s only making things worse. I’m also trying to stay calm in front of everyone, but it’s hard not to let these small issues build up in my head. I really don’t want to keep feeling frustrated, but I don’t know how to change my approach. I love my brother and I want to improve the atmosphere at home and make sure I’m not letting these things affect me so much. Please help.
Ans: Dear Anonymous,
Joint family systems are filled with adventure and these things that you have brought up are part of that adventure.
Take things as they come and make sure you train yourself not to react...is this possible? YES, it is!
Let's say your Bhabhi accuses you of something, maybe your first reaction is to get defensive and explain or argue. Instead, what if you trained yourself to say: Okay, she's again accusing me of something; let's see what is the new thing that she has invented and let me have fun by simply listening.

This will ensure that your part of adventure gets playful and it will also enable you to respond rather than react. Now, does this happen overnight? NO, it requires a lot of mind training but start somewhere to get to someplace different.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1413 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 28, 2024

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Hi, I Am 26(M). I had an arranged marriage, my wife had a pre-marital affair which continued even after our engagement and for 9 months of marriage. According to my wife, she met him once and he wanted to have sex but my wife didn't do it. (The used to chat on Instagram). I found out today after 2 years of marriage. And we just had a baby. My wife asked me to use Instagram after we got engaged, but I refused because I was afraid it would have a bad effect on her. I don't even use it cause I know what can go wrong. When I caught her red-handed and saw the man's chats, I took her phone. And then I had read a little chat, then my wife came to me and said that she had to call our maid. I gave her the phone and she not only spoke on the phone but also deleted the chats with the guy. My eyes were closed when she spoke to maid on the phone. Cause I was so tired. Then I asked my wife to talk to him in front of me because I wanted to teach him a lesson and find his fiancée and tell her the truth. I'm very loyal to my wife. And she was my world. I've never had a girlfriend. I am open minded and I had asked my wife before the engagement, after the engagement on the phone and even after the marriage that if she had a past, I will accept it. My wife messaged him and he asked her talk on video call. The guy also knows that we have just had a baby who is not even 1 month old. I turned on the screen recording of the video call and gave it to my wife. In that screen recording, my wife texted the guy and told him to talk carefully cause I was sitting in front of her and then deleted the message with option of 'delete for you' on Instagram. This is how my wife cheated on me 2 times even after being caught. She told me that she loved me later on. And she took great care of me. She brought me out of depression. She did everything and I also loved her with all my heart and did everything for her. Right now she is saying I forgive her and she wants to live with me like before. She apologized a ton as well. But I don't know what to do at the moment. After so many lies, I can't trust her easily. She has a habit of lying in small things as well. I want to live with her, she was my support, my mother is not even there. when I was 12 years old... Now what do I do? Please kindly guide me!
Ans: Dear LoneKnight,
Yes, you feel like your trust has been broken. Is it easy to build back that trust? Yes and No...Yes, if you wish to...No, if you don't wish to...
If you go back in time and play the same story about how you wife was on Instagram and how she 'cheated' on you, there is no way that you can put your marriage back together.
How are you open-minded when an Instagram account causes you to fear what will happen? I can understand that you are a person with no past girlfriends but people do come with a past. Now, your wife could have shared her past with you, but most women seem to not want to for fear of reaction from the men like you have now. I can see that all this has hurt you, but if you want this marriage to work, you are going to have to drop all the past baggage, yours and your wife's and start afresh. Which means taking things for what it is NOW at face value without doubting it.
Can you do that? My suggestion would be: make an honest attempt at it. But warn yourself against going back in to the past otherwise there will be more mud throwing and no solution in sight.
Start new, Start afresh...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1413 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 28, 2024

Asked by Anonymous - Dec 25, 2024Hindi
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Relationship
Hi Anu, Im a returning NRI post 20 years having lived abroad. Wasnt sure if I would ever have come on this platform but yes I have . I have been involved with a girl in India for the past 6 years , we both are in our end 40's shes 47 and i will be turning 50 next year. On my bi annual visits we have been meeting, getting physical and share almost everything. There was nothing hidden between us, frank discussions about life, menopause, family issues, support for each other and a lot of love flowing, gifts exhanged both ways , always there for each other and so on. For the past 5 years she was out of a job but now has started working again since the past 7 months or so. Happy for her. I made a decision to take early retirement and head back home , a purely personal choice and spend more time with her. Its just that now when im back and expressed my desire to visit her , i feel shes a bit hesitant, we stay in different cities. I was pretty stunned when I initially planned to see her around the christmas week but she cited follow up prayers for a close family member who had passed away a couple of years back and her unavailabilty. Moreso the dates I had proposed she was unsure of committing time during that period and I let it pass. I was pleasantly surprised and also hurt that during those specific days , shes taking off for a short vacation citing she needs to recharge. Not sure what I should make out of this. Our conversations since my return have been short, messaging not that frequent but overall i feel the thrill that used to be there earlier is missing from her end. I cant understand -:), all was good till a month back. Simply put I dont wanna confront her, its her life after all but just need some advise : is this normal hormonal changes or do u feel its something more and I shud let go. Yeah I know its gonna be difficult for me but some closure I need.
Ans: Dear Anonymous,
Your partner/lady seems to be one of those who is happy with a virtual relationship and all the perks in it. It gets easy as there is no commitment within that relationship; at least that's how it reads to me from your post.
It's possible that in her mind she must have thought that the long distance thing works better. Now that you are back, it's possible that you might ask her that the two of you move things further as in a COMMITMENT.
So, maybe you must initiate a conversation with her and be very clear as to what you want from her and the relationship. And also listen patiently to what she has to say. She may not want to pursue a commitment and this is something that you must prepare yourself to hear!
Is this all stemming from a hormonal change? Well, it's strange because a month back things were all good; so where were these hormonal changes back then? So, no...Do have that honest conversation and see where it goes...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

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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