Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Samkit Maniar | Answer |Ask -Follow

Tax Expert - Answered on Mar 12, 2024

CA Samkit Maniar has eight years of experience in income tax, mergers and acquisitions and estate planning.
He has graduated from Mumbai’s N M College of Commerce and Economics and has completed his CA from The Institute of Chartered Accountants of India."... more

Question by VSPMANI on Feb 17, 2024Hindi

Money

Sir I have sold a 1bhk house after keeping it with me for about 20 years After deducting my expenses on its improvement like re wiring, floor replacing, compound wall Erection et.sold that house on 20 feb2021. I have parked my cap gain 1069000 in SBI cap gain savings account on 19 Jul2021. I declared ?1069000 in my return on 31 Jul 2021.But neither I could purchase a house nor I constructed a house. Iam a senior citizen retired from IAF. Drawing pension. I do get vehicle insurance commission and MF distributor commission.How to avoid cap gain Tax. As my Capgain ac completes 3 years my amount will be transferred to cap gain scheme A ( savings ac) Am I to pay advance tax for this amount. My pension and commission amount comes yearly around 4.40 lakh. Will this amount also be added to cap gain and tax will be assessed as regular income and my liability to pay advanvance tax. Or I have to pay advance tax only for the amount 10.69 lakh. Will my regular income other than Capgain be liable for 30% with Edu cess and with liability pay advance tax

Ans: Considering you do not have business income and are a senior citizen, advance tax provisions do not apply to you.

As far as capital gains is concerned the amount of deduction claimed in the year when the said amount was parked in the capital gains account scheme will be reversed after the 3 year time period and same will be taxable.

Please take your advice from CA as well.

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.

MoneyReply

You may like to see similar questions and answers below

Hardik Parikh | Answer |Ask -Follow

Tax, Mutual Fund Expert - Answered on Jul 23, 2023

Asked by Anonymous - Jul 20, 2023Hindi

Money

Hellow Sir, In February, 2023 I had sold a House Property and there is Capital Gain around 15.00 lakh. From the sale proceed I received, I have already bought a housing plot(land) costing Rs.11.00 Lakh, in May, 2023, in a Govt. approved scheme and this has also been registered in my favour. All other formalities for its mutation has also been completed. Since I am planning to construct house on this newly acquired Plot in next 2 years, kindly guide:- (1)whether the amount already incurred in acquiring above Housing Plot would also be considered against utilization of Capital Gain ? (2)the amount I have to kept in the Capital Gain Account Scheme for utilization during construction of House shall be Rs.15.00 Lakh OR Rs.4.00 Lakh (after deducting cost of Plot i.e. Rs.11.00 Lakh) ? Kindly Guide Regards !

Ans: Hello,

I understand your situation and I'm here to help. Based on the details you've provided and the current tax laws in India, here's what you need to know:

1) The amount you've spent on acquiring the housing plot can indeed be considered for the utilization of your capital gain. As per the Income Tax Act, if you reinvest the capital gains from the sale of a property in buying a new property or constructing a new house, you can claim tax exemption on the capital gains.

2) The amount you need to keep in the Capital Gain Account Scheme (CGAS) would be the remaining amount after deducting the cost of the plot from the capital gain. In your case, if you've already spent Rs. 11.00 Lakh on the plot, you would need to keep Rs. 4.00 Lakh (Rs. 15.00 Lakh - Rs. 11.00 Lakh) in the CGAS. This amount should be utilized for the construction of the house within the specified time period, which is 3 years from the date of sale of the original property.

Mihir Tanna | Answer |Ask -Follow

Tax Expert - Answered on Jul 21, 2023

Question by Vijay - Jul 21, 2023Hindi

Money

Dear Mihir I have sold a residential property in Feb.2023 and have capital gain of about 15.00 lakh. To construct new house, I have already bought residential plot costing 9.00 lakh and sale deed registered in May,2023. The cost of Plot was meet out from the sale proceed of the residential property sold in Feb.23. Kindly advise whether I have to kept Rs.6.00 lakh (i.e.Gain15.00 lakh minus 9.00 lakh cost of Plot) in Capital Gain Account Scheme for the construction of House OR I have to kept whole money of Capital Gain i.e. Rs.15.00 lakh in the CGAS. How much Amount I have to show in the IT Return for AY 2023-2024.

Ans: Unutilised amount of gain is required to be deposited in Capital Gain Account scheme

Mihir Tanna | Answer |Ask -Follow

Tax Expert - Answered on Jan 22, 2024

Question by VSPMANI - Jan 19, 2024Hindi

Money

I have sold a house for Rs 2250000/ on 19 Feb 2021 (The house was purchased by me in 2000. Capital Gain for the said house was calculated by me to 1069000.The amount was deposited in SBI Cap Gain Savings scheme in Jul2021.Neither I purchased any land nor I purchased a flat till now. Can I ask extension of a year to construct a house above my existing single storey residence or If no extension how much of percentage LTCG Tax to be paid by me.I have not withdrawn mt CGSS ac from Bank. When I went for closing Bank askin Approval from the ITO. Please guide me to save the tax

Ans: No, there is no such provision in income tax, allowing extension of period prescribed for exemption. You have to pay tax @20% plus applicable surcharge cess in the year of expiry of 3 years from transfer of original asset.

Samkit Maniar | Answer |Ask -Follow

Tax Expert - Answered on Feb 05, 2024

Question by VSPMANI - Feb 05, 2024Hindi

Money

Feb 2021 Sold A housing Property.Invested the CAPITAL GAIN in SBI Cap Gain Scheme in Jul 2021. Neither a house purchased nor constructed. How to save Cap Gain TAX. Can the 2-3 years parking of Cap Gain be extended..Am I toPay the Tax now

Ans: Unfortunately, the capital gains will need to be paid.

Ramalingam Kalirajan |6347 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Question by Deepak - Jul 02, 2024Hindi

Money

My Father has purchase a property for rs 115000 in year 1994.at Bhayandar west district Thane at Maharashtra state.and my Father did this registration in amnesty scheme in year 2008.and after that my Father died in year 2014.and after I made a release deed transfer this property in my name (son). I sold this residential property in June 2024for rs 30lakh.in this case I want to know the status of capital gain is there or not I also want to know if I sell this residential property .I can purchase ashop or not. If I want to save capital gain what is the solution to save my tax. Thanking u.

Ans: You sold a property in June 2024 for Rs 30 lakh. It was bought for Rs 1,15,000 in 1994. Let's evaluate if there's a capital gain.

Indexed Cost of Acquisition

The property purchase cost will be adjusted for inflation. This is called the Indexed Cost of Acquisition (ICA). The ICA is calculated using the Cost Inflation Index (CII) provided by the Income Tax Department.

Calculating Indexed Cost

Calculate the ICA to understand your capital gain. Since we won't use specific formulas here, you can consult a Certified Financial Planner to get the precise ICA value. This helps in determining the exact capital gain.

Long-Term Capital Gains (LTCG)

Since you held the property for more than 24 months, it is classified as a long-term asset. The profit from the sale, after adjusting for the ICA, is your Long-Term Capital Gain (LTCG).

Tax on LTCG

LTCG is taxed at 20% with indexation benefits. However, there are ways to save on this tax.

Investing in Another Property

You can save on capital gains tax by investing in another residential property. This is covered under Section 54 of the Income Tax Act. If you buy a residential house within two years or construct one within three years, you can claim exemption.

Investing in Capital Gains Bonds

Another option is to invest in Capital Gains Bonds under Section 54EC. These bonds have a lock-in period of five years and provide tax exemption on the gains. The maximum investment limit in these bonds is Rs 50 lakh.

Purchasing a Shop

Buying a shop will not provide capital gains tax exemption under Section 54. The exemption is only for residential properties. If you sell a residential property, you must reinvest in a residential property to save on capital gains tax.

Other Options to Save Tax

Residential Property: Invest in another residential property within two years.

Construction: Construct a new house within three years.

Capital Gains Bonds: Invest in these bonds within six months of the sale.

Final Insights

To save on capital gains tax, reinvest in a residential property or Capital Gains Bonds. Purchasing a shop will not help in saving tax on capital gains. Consulting a Certified Financial Planner can help you navigate these options efficiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Latest Questions

Dr Dipankar Dutta |617 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Sep 21, 2024

Question by Ranjana - Sep 20, 2024Hindi

Career

Sir which is better bs data science from IIT Madras or btech cse in any college

Ans: Here's the order of preference based on general considerations:

BTech CSE from a top-tier college (such as IITs, NITs, IIITs, BITS, etc.) – due to broader career options, stronger campus placements, and hands-on experience.
BS in Data Science from IIT Madras – highly specialized in data science, prestigious IIT tag, and flexibility, ideal for those specifically interested in data science/analytics.
BTech CSE from a mid or lower-tier college – broader course but may have fewer opportunities compared to top-tier institutes.

Dr Dipankar Dutta |617 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Sep 21, 2024

Question by SUJAL - Sep 20, 2024Hindi

Career

Sir I am Student of 12th science PCM preparing for jee examination..But I am very tensed about my future... Nowadays IIT , NIT graduates are also not able to secure jobs..is it the downfall of engineering in INDIA ? Should I change my career path to something else or not...Please help me.

Ans: It’s completely understandable to feel anxious about the future, especially when preparing for competitive exams like JEE. While it's true that the job market for engineering has become competitive, the core fields such as Computer Science, Data Science, Artificial Intelligence, Cybersecurity, Electrical Engineering, Electronics, and Mechanical Engineering continue to offer strong prospects, especially with industries undergoing rapid digital transformation. These days, companies are looking for skills over just degrees. Graduates from IITs and NITs still have an edge, but they need to continually upgrade their skills through internships, projects, and learning new technologies.

Dr Dipankar Dutta |617 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Sep 21, 2024

Question by Manpreet - Sep 20, 2024Hindi

Career

Which Field is better in Engineering for an IIT aspirant considering his course will complete in 2029

Ans: Here is some of the fields expected to remain highly relevant:
Computer Science and Engineering (CSE)
Artificial Intelligence and Machine Learning (AI/ML)
Electrical Engineering (EE)
Data Science and Big Data Analytics
Robotics and Automation

Dr Dipankar Dutta |617 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Sep 21, 2024

Question by Smitha - Sep 20, 2024Hindi

Career

Sir my son got cse in vit ap and cse in gitam Hyderabad which is best we stay in hyderabad

Ans: Go for CSE at VIT-AP

Milind Vadjikar |171 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 20, 2024

Asked by Anonymous - Sep 20, 2024Hindi

Money

Hi, I'm 37 and I just started to invest in MFs regularly. My investments are listed below. Except a couple of them, all of them are either 1 month to a few days old. As mentioned below, started SIP of 40000 between Motilal Oswal Nifty Midcap 150 and Nippon india small cap. I would like to invest 40000 more in SIPs making my total investment as 1CR over the next 10 years, in the hopes of creating a portfolio of 2 CR with a 12% return on year. I understand that there are 11 MFs here but appreciate your suggestions on trimming this down while meeting the above mentioned financial goal. Thanks. 1. Motilal Oswal Nifty 500 Momentum 50 Index Dir-G: One Time: Investment: 50000: Current Value 50000: 2. Nippon India Nifty 500 Momentum 50 Index Dir-G: One Time: Investment: 50000: Current Value: 50000: 3. Mirae Asset ELSS Tax Saver Dir-G: One Time: Investment: 50000: Current Value:70277: 4. Mirae Asset ELSS Tax Saver Reg-G: One Time: Investment: 24998: Current Value:38598: 5. Parag Parikh Flexi Cap Dir-G: One Time: Investment: 50000: Current Value: 52727: 6. Axis ELSS Tax Saver Dir-G: One Time: Investment:30000: Current Value: 63863: 7. Nippon India Large Cap Dir-G: One Time: Investment: 49999.99: Current Value: 52358: 8. Motilal Oswal Midcap Dir-G: One Time: Investment: 50000: Current Value: 54061: 9. Quant Small Cap Dir-G: One Time: Investment: 100000: Current Value: 103437: 10. Motilal Oswal Nifty Midcap 150 Dir-G: SIP: Investment:19999.98 Current Value: 20319: 11. Nippon India Small Cap Dir-G: SIP: Investment: 20000: Current Value 20040:

Ans: 1. Nifty 500 Momentum 50 Index is a recently introduced index and hence also your funds based on this index. The back tested results look attractive however I recommend you to monitor them closely for 2-3 years and if you feel not sure about their progress you may exit and redeploy proceeds into PPFAS flexicap fund and Nippon large cap fund.

2. The additional 40 K sip proposed maybe split between either ELSS(for tax saving too) or PPFAS flexicap and Nippon India large cap fund.

3. You may merge your ELSS investments into one fund, my advice would be Mirae Asset ELSS.

4. This will help rationalize number of funds in your portfolio from 10(+2) to 7.

5. Discipline, focus and periodic review in MF investment are a must!

6. As you reach closer to your target transfer the gains from equity funds to liquid/debt funds to protect it from volatility.

I am quite hopeful that you may very well achieve the intended target with the right approach.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

You may follow us on X at @mars_invest for updates.

Happy Investing!!

Aasif Ahmed Khan |152 Answers |Ask -Follow

Tech Career Expert - Answered on Sep 20, 2024

Question by Manpreet - Sep 20, 2024Hindi

Career

Which Field is better in Engineering for an IIT aspirant considering his course will complete in 2029

Ans: Your best field will depend on your interests, strengths, and career goals. It’s also a good idea to consider the flexibility of the field and how it aligns with future industry trends.
If you are tech-crate then opt for CSE, IT-related courses
In the other hand if you love the core subjects Mech, EE, and Civil will work for you.

Milind Vadjikar |171 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 20, 2024

Question by BRAHMA - Sep 20, 2024Hindi

Money

What is the maximum age of EPF contribution deposit

Ans: There is no age restriction for becoming a member of the Provident Fund(EPF), whereas an employee who has already attained the age of 58 cannot become a member of the Pension Fund(EPS).

Ravi Mittal |314 Answers |Ask -Follow

Dating, Relationships Expert - Answered on Sep 20, 2024

Asked by Anonymous - Aug 07, 2024Hindi

Relationship

I met a women through a matrimonial site. I live abroad and she lives in India. I am 42 and she is 40 years old. We spoke for about 6 months. Then I came to India. Spent some time together and even met the parents. We both like each other. And have the blessings of the parents. But the problem is distance. I am very close to attaining citizenship. But still see that the process and getting an OCI could take at least 2 years. She has a good job with the central government in India. She has decent career prospects, in the country where I live. Initially, she was not interested in marrying anyone living abroad. I raised this with her when we spoke. She had come to where I live for a short diploma course, and was okay in talking with me. When I met her parents, they were also okay with her moving abroad. So far things have been good, but now we are trying to fix the dates for marriage, and trying to solve the long distance issue. I suggested that she could take a sabbatical and spend some time, or if possible pursue higher education. so she need not leave her job in India. Given her current background she also has good career prospects already. However she panics now every time I try to breach this topic. She is scared even to research n life abroad, and now she feels it is better we break up. She admits that , she is a chronic overthinker, I have been very careful in dealing with difficult topics. She has had a relatively easy life, whereas I am used to dealing with challenges personal and professional setbacks. It is really difficult to connect with someone, irrespective of age. I have worked for 18 years in India, and not keen to go through the toxic culture and harsh corporate life. She has a transferable job in India, so even in India we might struggle to be together. I am okay with retiring, from a corpoarte jb and seeking another career which would keep me financially independant and help me lead a meanigful existene. I am exploring ways, but thiis is going to take time. We both considered all the scenarios, and agreed that if she finds a good job abroad, would be relatiely the easier path. But now she is not even ready to consider this and becomes very anxious. . I feel I am more, happy healthy living abroad than in India. I was diabetic in India, and am now off medicines , after moving abroad. It has been easier for me to lead a happy and healthy life abroad, even though I live alone. I am wondering how to approach this. I do not want to hurt anyone. I can understand why she is anxious. I have told her that she does not have to leave her job, she only has to research if she has good prospects. I even offered to get her in touch with folks who have made such transition. I gave her contact details of consultants who can advic her on her career prospects. Visa etc is not an issue. Please advise if I can salvage this relationship or better to accept defeat. I really like her and do not want to hurt her.

Ans: Dear Anonymous,

I understand your concerns. It is a tough choice- both for you and her. On one hand, we can't completely deny her concerns either. She has a good job here and the fear is only fair. But, given her chronic overthinking, she must have already created a worse scenario in her head. It sounds like you both are in a difficult spot where you care for each other deeply but life-changing decisions are creating anxiety. No matter how much you tell her, it isn't going to help. She has to come to terms with it herself. but there are some things you can do to speed up the process-

Acknowledge the fear- Don't make her feel like she is wrong to think this way, or that she is merely overthinking. There is some logic to her fears. Acknowledge that. It does not mean you are encouraging them. Just let her know that any big life decisions are bound to cause some panic in a person and her feelings are completely valid.

Encourage her to take small steps- Instead of asking her to talk to people who have made the shift, try casually including stories of such people in a normal daily conversation once in a while. It would not feel like a commitment but also give her an idea.

Frame the discussion in a better way- For instance, instead of focusing on the move, discuss the life you will be building together. This will give her a scope to see what she can gain if only she can get over her fears.

Do not rush- Big life decisions can't be taken in a hurry. So, give her that space and time. In the meantime, you can continue with life as it was. Let her know that there isn't a timeframe within which she has to decide. This isn't an ultimatum. Sometimes a few kind words can make all the difference.

It's still not time to give up. Is she worth trying a little more? If yes, try. Create a space that is free of judgment where she can openly share her worries, no matter how trivial they might be. It can seem that you are putting in all the effort, but for a chronic overthinker, even considering or trying to overcome a set fear is a big task. Give her a little more time. I am sure things will work out soon.

Best Wishes.

Ravi Mittal |314 Answers |Ask -Follow

Dating, Relationships Expert - Answered on Sep 20, 2024

Asked by Anonymous - Aug 27, 2024Hindi

Relationship

So, i've started talking to this girl who was a classmate during my college. We've never talked all this time... But we started talking only after 7 years... She was currently working near my home town.. and i am working in a neighbouring state. It is 3 or 4months now.. we are talking and we liked each other...like.. we were in the same situations in life... Like.. we both lost our mothers.. and we are from the same community.. but the deadlock came here in the guise of religion. She belongs to one and i belong to another... Even though we both from same caste... We had a discussion before like.. even though we like each other... she cant move forward in relation because of religion. We had am understanding for sometime... But recently we had a discussion over the same topic and we had a fight... Now the girl and i are not fully talking to each other... Cause she was frightened on what could happen to us if we move forward in a relationship and it fails... Because we are not a stage to try and test things because we both are 29 and you know how it will be in family for a girl... So pleaseee give me advice how to save this relationship... Because i dont want to miss this girl at all. Please...

Ans: Dear Anonymous,

I understand that you are in a tough spot, but if she has truly made up her mind not to proceed with the relationship, especially based on something as sensitive as religion, I cannot advise you to pursue her or try to convince her further. The only thing you can do is have one last open discussion where you express your feelings and the things you are willing to do to make this relationship work out. And for one last time, you can ask her, and only ask, if she would be willing to give it another try. If the answer is still a no, I am sorry, but it would not be wise to continue pushing this. If religion is important to her or an integral part of her family values, it would be selfish to ask her to set that aside for you.

I hope things work out for you.

Best Wishes.

Ravi Mittal |314 Answers |Ask -Follow

Dating, Relationships Expert - Answered on Sep 20, 2024

Asked by Anonymous - Sep 16, 2024Hindi

Relationship

Hi sir, I’m planning to start a new life with my girlfriend for rest of my life leaving our both families aside. Reason to do that is, I’m recently married with other girl, and my gf married to other guy. We both didn’t even completed 6 months. We are not happy with our life partners. The reason we Got married to other is lack of courage to fight elders by my girlfriend but now she is ready to do fight or even leave them aside for me and start a new complete life.I’m a simple corporate working guy. We are completely decided to live together whatever happens. Our parents wont accept us as they are thinking about our married partners. Whats the best advice you would give to us to start new life in other state?

Ans: Dear Anonymous,

This is a huge decision. First, I would advise both of you to think this through. I am not discouraging you because a broken marriage is far better than a forced one. But if you have even the slightest tinge of doubt, don't rush it. A lot of people are involved in this.

Here are my two cents-

Respect your current marriage- Even if you decide to leave your spouses, you have to handle this situation responsibly and with respect. You are in love with each other, but your current partners are going to suffer for it, through no fault of their own. The least you can do is part ways with kindness and integrity.

Legalities- Divorces can be a long and complicated process. It takes a financial and mental toll on people. Be prepared for that, especially since you do not have the support of your family.

Mental health- Here I am not only talking about your mental health, you need to consider your current spouse's mental health too. And though leaving behind your family seems to be the only option, it is still a big decision. Make sure both you and your girlfriend are in the right frame of mind when you finalize the decision.

As for building a new life in a new city, as exciting as it is, it will be equally challenging. Plan everything to the last detail- finances, living arrangements, job, etc. Before you make the move, make sure both of you are financially independent and self-sufficient. That's the only way to tackle any hurdles.

My best advice is to make this decision very carefully and approach the situation with empathy for all parties involved. I urge you to be honest with your current partner, instead of ever resorting to gaslighting. This is on you, but it would be easy to pin this on your spouse. Don't take the easy route. Take the right one.

I hope things work out for you with no one getting irreparably hurt.

Best wishes.

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x