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Mihir

Mihir Tanna  |1068 Answers  |Ask -

Tax Expert - Answered on Feb 23, 2023

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
Asked by Anonymous - Feb 13, 2023Hindi
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Hi Sir, I purchased a plot in Mhow , MP in the year 2004 for approximately 80,000 Rs. As I was unable to travel for registration, I asked my Masi (mother's sister) to get it registered in her name (I didn't understand or care about the tax implications then). The plot now costs approximately 5 lac as per the market rate. I now understand the tax implications. I am wondering if I could now get the plot registered in my name. No money will change hands as the plot was paid for by me anyways. My masi is a widow living on pension which comes from her husband's job. Can you please help me with your view on getting the registration in my name, minimising the tax liability.

Ans: In the absence of any supporting documents, matter can be subject to litigation. It is advisable to pay tax on difference amount and get registration transferred.
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  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 26, 2024

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I have been allotted a Plot by authority on 25.05.2016 with a circle rate of ? 15,620.00, and i have been deposited the total amount ? 18,74,400.00 with the Hone Loan of ? 10,00,000.00. Further, authority has given me the letter in March 2024 to register the plot and pay the other charges like, Lease Rent One time, Location Charges, Sewer, Water Connection, Registration Charges etc. I have deposited all the charges of total = ? 3,37,242.00 and get registered with stap duty of ? 1,53,000.00 on 17.06.2024 and taken the possession on 18.11.2024. My total expenditure on the plot comes to ? 23,64,631.00 (Including Stamp Duty). I am planning to sell this plot on amount of ? 33,00,000.00 with the revised circle rate of ? 25,900.00. What are my tax liabilities in this transaction (LTCG or STCG) and any suggestion for exemption.
Ans: To determine your tax liability for the sale of the plot, let’s break down the situation:

Important Details from Your Case
Date of Allotment: 25-May-2016.
Date of Registration: 17-Jun-2024.
Date of Possession: 18-Nov-2024.
Total Cost of Acquisition: Rs. 23,64,631 (including stamp duty).
Sale Price: Rs. 33,00,000.
Circle Rate: Rs. 25,900 per square metre (revised from Rs. 15,620 per square metre).
The total holding period and your choice of taxation method will determine whether you incur LTCG (Long-Term Capital Gains) or STCG (Short-Term Capital Gains) and the corresponding tax liabilities.

Is the Gain Long-Term or Short-Term?
The date of allotment (25-May-2016) is generally considered the purchase date for real estate. Since you are selling the plot after holding it for more than 36 months (over 8 years in your case), your gain qualifies as Long-Term Capital Gain (LTCG).

Calculating the Capital Gains
Sale Price: Rs. 33,00,000.

Cost of Acquisition: Rs. 23,64,631.

Capital Gain: Rs. 33,00,000 – Rs. 23,64,631 = Rs. 9,35,369.

Taxation Options for LTCG (as per the updated rules for sales after 23-Jul-2024):

Option 1: Tax at 12.5% without indexation.

Tax = 12.5% of Rs. 9,35,369 = Rs. 1,16,921 (plus applicable cess and surcharges).
Option 2: Tax at 20% with indexation.
Indexed Capital Gain = Rs. 33,00,000 – Rs. 31,15,434 = Rs. 1,84,566.
Tax = 20% of Rs. 1,84,566 = Rs. 36,913 (plus applicable cess and surcharges).
Choosing the Better Taxation Option
Option 2 (with indexation) is clearly more tax-efficient in this case.
You will pay a lower tax of Rs. 36,913 instead of Rs. 1,16,921 under Option 1.
Suggestions for LTCG Exemption
To further reduce or eliminate your LTCG tax, you can explore the following exemptions under the Income Tax Act, 1961:

1. Section 54F: Invest in a Residential Property
If you use the sale proceeds to purchase or construct a residential property, you can claim exemption under Section 54F.
Conditions:
You must not own more than one house property on the date of transfer.
The new property must be purchased within one year before or two years after the sale, or constructed within three years.
The entire sale consideration should be utilised to claim full exemption.
2. Section 54EC: Invest in Specified Bonds
Invest up to Rs. 50 lakhs in NHAI or REC Capital Gain Bonds within six months of the sale.
The investment is locked in for five years and offers a safe, tax-saving option.
3. Capital Gains Account Scheme (CGAS)
If you cannot immediately utilise the sale proceeds, deposit them in a CGAS account before the filing deadline.
This allows you to keep the exemption intact while planning future investments.
Final Insights
Your plot sale qualifies for LTCG tax. The 20% with indexation option significantly reduces your tax burden.
To minimise tax, consider reinvesting under Section 54F or 54EC.
Consult a Certified Financial Planner or tax expert for tailored advice on reinvestment options and compliance with timelines.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

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Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
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Hi, my son has secured an admission in a 2+2 BITS CSE program 2025 at Hyderabad (first 2 years) and Iowa state univ (for next 2 years). Under DASA he can potentially get AI at NITK or ECE at NIT Trichy or CSE in NITW (his CRL rank is 25200). Can you please advise and provide recommendations on what we can choose and reasons? We know 2+2 ISU program is more expensive compared to NIT DASA fees but is it worth the money vis-a-vis doing a B.Tech at NIT and doing a masters in US later? For this rank, what can he get at the said NITs under DASA?
Ans: The BITS Pilani–Iowa State University 2+2 CSE offers two years at BITS Hyderabad (ACM-aligned curriculum, NAAC A++ accreditation, state-of-the-art AI, data-science and cloud labs) followed by two years at Iowa State University (top-50 US engineering program, immersive B.S. in Computer Engineering, ISU merit scholarships up to US $4,500/year). Total direct tuition and campus fees for BITS Hyderabad amount to approximately ?10.5 L per year, while Iowa State tuition exceeds US $33,000 annually, plus living expenses. Graduates earn dual degrees with global brand recognition and typically secure near-100% placement through BITS’s 200+ recruiter network and ISU’s strong career services, commanding premium compensation packages in software, data science and R&D roles.

Under DASA with an All-India CRL of 25,200, he qualifies for: B.Tech AI at NIT Surathkal (AI cutoff: 26,688); B.Tech ECE at NIT Trichy (ECE cutoff: 66,706); and B.Tech CSE at NIT Warangal (CSE cutoff: 46,935). Each NIT features NBA accreditation, experienced PhD faculty, modern labs and strong industry MoUs. NITK AI and NITW CSE boast placement rates above 80% and growing AI/analytics recruitment pipelines, while NIT Trichy ECE records near-75% core-sector placements. Annual DASA fees at NITs range from US $15,000–18,000, significantly lower than BITS-ISU costs, with comparable scholarship opportunities limited.

Balancing long-term ROI, the BITS 2+2 path accelerates global exposure, dual-degree credentials and premium placements at higher upfront cost. A B.Tech at NIT followed by a US master’s entails lower initial investment, robust core engineering training and the flexibility to self-fund graduate studies through campus placements or scholarships.

Recommendation: Opt for BITS 2+2 CSE if you prioritise world-class international exposure, dual degrees and, top-tier placement networks despite higher fees. Choose a DASA seat at NIT (AI at NITK or CSE at NITW) for cost-effective core engineering training with solid placement and later pursue a US master’s via merit scholarships. All the BEST for a Prosperous Future!

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Nayagam P

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Best option in iiit hyderabad for better placement and early internship in btech and dual degree for course cse with speclization ai ml
Ans: Dipanshu, IIIT Hyderabad’s B.Tech in CSE offers an ACM-aligned curriculum covering algorithms, systems, AI/ML, data science and electives in computer vision and NLP, delivered through state-of-the-art AI, cloud-computing and robotics labs. A 12-credit Practice School internship begins in the fifth semester, supported by a proactive placement cell and corporate mentoring, yielding a 99% placement rate for BTech CSE with an average package of ?31.98 LPA over the past three years. Faculty include PhD-qualified researchers with strong industry collaborations, and accredited NAAC A++ status underpins academic quality. The five-year dual-degree integrates the BTech foundation with a research-oriented MS by Research, immersing students in advanced AI/ML theory, thesis work under DST/CSIR grants, and early research assistantships via centres like Kohli Center on Intelligent Systems. Dual-degree cohorts see 100% MS placement at an average of ?26.46 LPA, and graduates often secure RA internships and stipends of ?20,000–?50,000 monthly through lab-based projects. Both paths benefit from IIIT-H’s industry MoUs, interdisciplinary innovation hubs and global recruiter network, yet differ in academic depth, time-to-degree and placement profiles.

Recommendation: Opt for the BTech CSE for its higher average placement packages, structured Practice School internships from year three and broader recruiter diversity. Choose the dual degree if you seek early research immersion, advanced AI/ML specialization, funded thesis work and a stronger pathway into academia or R&D roles. All the BEST for a Prosperous Future!

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My son got admission in KCG college chennai with CSE. Now we got CSE in Amrita Chennai. My concern that Amrita chennai feeswise more than double comes to around 18 laks whereas KCG 8 laks overall Kindly suggest which one is good. Amrita is over burden for me. Still considering my son career I am ready to take loan or something to manage. Kindly suggest which one is goo
Ans: Raj Sir, KCG College of Technology, affiliated to Anna University and AICTE-approved, holds NAAC A+ and NBA accreditation for its CSE programme, a centrally located 50-acre campus with 140+ virtual and physical labs, including specialized AI, cloud and programming facilities. Its dedicated placement cell reported an 88%–94% placement rate over the past three years, with an average package of ?5 LPA and top recruiters such as Accenture, Cognizant, IBM and Amazon. Total tuition fees amount to approximately ?2 lakhs for the entire B.E. course.

Amrita School of Engineering Chennai, a constituent of Amrita Vishwa Vidyapeetham (NAAC A++), operates a 13.5-acre hill-campus with state-of-the-art AI, data-science, cybersecurity and cloud labs, and a strong industry-university research ecosystem. Its CSE graduates achieved a 90%+ placement consistency in 2024, with an average package of ?9.2 LPA and participation from 300+ recruiters including TCS, Wipro, Accenture and Amazon. Total tuition fees for B.Tech CSE are ?18 lakhs over four years.

Academically, KCG offers a robust ACM-aligned curriculum and extensive virtual-lab access, whereas Amrita provides a research-driven, choice-based credit system, extensive centers of excellence, and global collaborations. Both institutions maintain active MoUs and experienced Ph.D. faculty, but Amrita’s higher spend yields stronger median placements and broader recruiter reach.

Recommendation: Opt for Amrita Chennai CSE if investment is feasible, to leverage its superior placement outcomes, advanced research infrastructure and extensive industry linkages. Choose KCG College CSE for an accredited curriculum with solid placement consistency at a significantly lower cost, preserving financial flexibility. MY SUGGESTION: Finalise KCG and advise your son to keep upgrading his skills during the next 4 years, build a strong & professional LinkedIn Profile, improve his soft skills etc., to be competitive among other students for campus placement. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
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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