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Ramalingam

Ramalingam Kalirajan3819 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Asked on - Jan 25, 2024Hindi

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I am 68year old Pensioner. Last month I sold my house property and earned around Rs50lacs. I w am planning to gift the entire amount to my son in order to get tax exemption. My son is planning to utilise the amount to repay part of his housing loan from HDFC, probably during September 2025 . Now (1)Does he has to pay IT for this amount as he will be spending only in laterhalf of 2025? (2) Instead, if I invest this amount in LTCG or NHAI funds, do I have to pay any tax for this total amount this year?
Ans: Your decision to gift the proceeds from selling your house to your son reflects a heartfelt gesture of support and love. As you navigate the tax implications, it's essential to consider the timing and nature of the transaction.

Regarding your first question, your son won't be liable to pay income tax on the gifted amount until he utilizes it, typically in September 2025. This postpones the tax liability until the funds are actually put to use.

Exploring alternative options, such as investing in Long Term Capital Gains (LTCG) or NHAI funds, could potentially offer tax benefits. However, it's crucial to assess the tax implications and investment suitability carefully. While these avenues may provide tax advantages, it's essential to evaluate their risk-return profile and alignment with your financial goals.

Consulting a Certified Financial Planner can provide clarity on the tax implications and help you make informed decisions aligned with your financial objectives. Remember, every financial choice carries its own set of considerations, and seeking professional guidance can illuminate the path towards wise financial stewardship.
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Ramalingam

Ramalingam Kalirajan3819 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 04, 2024

Asked on - Feb 03, 2024Hindi

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I have sold aproperty in December 2023 for 44.5lacs which was originally purchased for 2.7lacs in 1999. Now 1) An amount of Rs 40000 was incurred towards brokerage charges. Can I avail this as deduction from the total in tax calculation? 2) How to calculate the capital Gain Index for this amount? and 3) Can I add expenditure spent towards maintenance, additions made etc over theses years (for which no proof I can show) to get any tax deduction?
Ans: Brokerage Charges: Yes, you can deduct the brokerage charges of Rs 40,000 from the total sale proceeds before calculating the capital gains tax. The brokerage charges incurred in selling the property are considered as a legitimate expense and can be deducted from the sale proceeds.

Capital Gain Index: To calculate the indexed cost of acquisition for long-term capital gains tax, you need to use the Cost Inflation Index (CII) issued by the Income Tax Department. The formula to calculate indexed cost of acquisition is: Indexed Cost of Acquisition = Cost of Acquisition x (CII of the year of sale / CII of the year of acquisition). You can find the CII values for different financial years on the Income Tax Department's website.

Expenditure on Maintenance and Additions: Unfortunately, you cannot add expenditure spent towards maintenance, additions, etc., over the years without proper proof for tax deduction purposes. The Income Tax Department requires proper documentation and proof of expenses to claim deductions. Without proper documentation, these expenses cannot be considered for tax deduction.

It's always advisable to consult with a tax advisor or chartered accountant for accurate guidance tailored to your specific situation, as tax laws and regulations may vary. They can provide personalized advice and help you maximize tax benefits while ensuring compliance with tax laws.
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Dr Karthiyayini

Dr Karthiyayini Mahadevan759 Answers  |Ask -

General Physician - Answered on Feb 15, 2024

Asked on - Feb 06, 2024Hindi

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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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