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Mihir Tanna |977 Answers |Ask -Follow

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

Question by rajesh on Nov 10, 2022Hindi

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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Question by rajesh - Nov 10, 2022Hindi

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?

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.

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