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Mihir

Mihir Tanna  |798 Answers  |Ask -

Tax Expert - Answered on Mar 30, 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
Mahesh Question by Mahesh on Mar 27, 2023Hindi
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Can you please provide the guidelines to buy a flat (property) of agreement cost of 65 Lakh, then Who, when & how will pay the TDS?

Ans: Buyer of TDS is required to deduct TDS @1% at the time of credit to account or payment (whichever is earlier) and deposit it through form 26QB within 30 days from the end of the month in which TDS is deducted.

For more details please refer https://incometaxindia.gov.in/Charts%20%20Tables/TDS%20Purchase%20of%20Immovable%20property.htm#:~:text=Section%20194%2DIA%2C%20provides%20that,one%20per%20cent%20of%20such

“consideration for transfer of any immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property;’
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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Mahesh

Mahesh Padmanabhan  |120 Answers  |Ask -

Tax Expert - Answered on May 20, 2023

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Sir, On 14-June 1994, I acquired a flat (tenement) in my own name for Rs. 2,98L. In April 2015, I had to spend Rs. 4.15L on general renovation of this flat. Now, I plan to sell this tenement and wish to invest its sale proceeds within two years of the sale in buying a ready possession flat in another city. My queries are follows: 1. Can I invest the sale proceeds in buying two flats in the same society of the new city or do I have to necessarily invest in one property only? 2. Can I add the name of my spouse and my son also as co-owners in the new property(s) even if their financial contribution is nil? 3. Can I add the name of my spouse and my son also as co-owners in the new property(s) in case they also partially contribute financially in the purchase of the new flat(s)? 4. What is the present applicable Indexed Cost of the flat planned to be sold by me?
Ans: Hi Thomas
As the base year for Cost Inflation Index (CII) has been reset to 2001, you may need to get a valuation done through an approved valuer to identify the value as on April 1, 2001. If this value is higher than Rs. 2.98 Lakhs then you could use that as the cost.

As regards the general renovation amount spent, it may not be allowed to be added as cost of the property as generally tax officers are not dispensed to allow it.

W.R.T. your decision to reinvest in a ready possession flat within 2 years, please note that if this investment is extending beyond 6 months OR due date for filing your tax returns (whichever is earlier), you would need to open a Capital Gain Account Scheme (CGAS) account with a nationalized bank and park the capital gain amount in it for reinvestment.

Now answering your queries

Query 1 - If the capital gain amount does not exceed Rs. 2 Crores then you could reinvest in 2 residential units. This however is a one time option and cannot be used again in any other year.

Query 2 - Yes you could add their names but they would be treated as name-sake owners and for all purposes of taxation, you would be taxed singly.

Query 3 - You can add their name as proportionate owners to the value of their contribution. The taxation of income in that case would be based on their contribution

Query 4 - The answer to this would depend on the valuation report. Nevertheless, you could derive the indexed cost yourself by multiplying a factor of 3.48 to the cost. An example would be as follows:

Suppose the cost is Rs. 2.98 Lakhs
Indexed cost would be Rs. 2.98 Lakhs x 348 / 100 OR 2.98 Lakhs x 3.48 = Rs. 10.37 Lakhs
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Hi Sushil. My daughter is planning to do MS from US. She has got acceptance from two universities and waiting from one more. Meanwhile, I have approached bank for loan. Their list of documents require I20, whereas for I20 I have to show finance. How to solve this? Secondly, the fee estimate of University shows only for one year ( spring and fall), How can I show the requirement for two years to Bank? No.3: Whether cash in account to be shown while applying for VISA or bank loan also will do? Sorry I have asked lot of questions.
Ans: Hello R. It is great that your daughter has been accepted by a couple of universities in the US. To answer your question first, generally, banks do ask for I-20 to process the loan application; however, a few banks or NBFCs, e.g., HDFC Credila, could issue a loan sanction letter on the basis of the offer letter issued. You could use this sanction letter to call for the I20, provided the university is accepting the letter, or show the required funds in your savings account, provide a bank certificate, and then call for the I20.Expenses to be shown in the bank certificate or savings account to call for the I20 are for a year, which includes the total of tuition, food, accommodation, and miscellaneous [if any]. I20 will show expenses for 9 or 12 months; however, it will also clearly mention the start and end dates of the course, which would help the bank know the total duration of the course and accordingly sanction the loan amount will be sanctioned. Yes, both the savings account and the education loan letter could be used during the visa interview.

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Asked by Anonymous - Mar 29, 2024Hindi
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I was doing Business for past 23 years and have been succesful in that.. After COVID my business fell apart and I am trying to regain the foothold. Although I have created a good brand, I am not able to make the Money I was making earlier. However the buisness is picking up and I knew If I could have little more patience, I will make it. However the situation demands lot of financial requirements for my lifestyle and family. They are insisiting me to go for a Job now. My business is stagnent for past few years and it is slowly showing the signs of growth now.. I do not want any waiting time due to pressing needs. I am 49 Now.. I am not sure if applying for work at this age will help as I have no idea on the Job market.. I am getting very good offers on selling my Business. Kindly advice.
Ans: Dear

There are two parts.

Emotional...how you feel attached to your business.

Rational: your financial needs and the revenue that your business is generating.

Any advise us a function of both the above aspects. Unless one knows the current revenue numbers, growth potential of the business, competition and several such factors it's not possible to share any guidance.

Hence may I suggest you talk to your CA and other colleagues of yours, look at the numbers in hard way and then take a call.

Emotional aspect can be both strength and liability... strength because it will inspire you to make business grow... liability because you may be overtly attached to your business without looking at the financial realities.

All the best.
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Dr Shakeeb Ahmed

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Asked by Anonymous - Mar 28, 2024Hindi
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Sir im 36 yrs of age weighing 107 kgs and I regularly walk which helps in maintaining my weight but im unable to reduce belly fats. I walk approx 4 kms daily within 30 minutes .
Ans: Thank you for your inquiry. I appreciate your dedication to maintaining a consistent walking routine for weight management. However, if you're specifically aiming to reduce belly fat, it might be beneficial to incorporate additional methods into your regimen.

While walking is great for overall health and weight control, integrating strength training exercises can be instrumental in building muscle mass and boosting metabolism, thereby facilitating greater fat loss, including targeting belly fat. Incorporate exercises such as squats, lunges, push-ups, and abdominal workouts like crunches or planks.

To enhance the effectiveness of your walking routine, consider adding intervals of higher intensity. This might entail alternating between periods of brisk walking and intervals of more vigorous effort, such as walking uphill or increasing your pace to a jog for brief durations. This approach can elevate calorie expenditure and promote fat burning.

In terms of nutrition, it's crucial to pay close attention to your dietary habits, as they significantly impact fat loss. Prioritize a well-rounded diet rich in whole foods such as fruits, vegetables, lean proteins, and whole grains, while minimizing intake of processed foods, sugary beverages, and excessive calories, which can contribute to belly fat accumulation. Additionally, consider reducing carbohydrate intake and increasing protein consumption in consultation with a registered dietitian for personalized guidance.

Overall, by incorporating these strategies alongside your walking routine, you can optimize your efforts towards reducing belly fat and improving overall health.
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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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