[Lij]

Hi,

We had sold one of our properties in the previous financial year. So need to fill ITR-2 to show LTCG on this transaction.

I had sold the property for a value X and after adding the govt taxes, the amount in the agreement shows as Y. The agreement clearly mentions that we have received only X amount from the buyer.

In the Schedule for capital gains there are 2 field where I need clarity and which values of the above should go here.
1. Full Value of consideration received/receivable - X?
2. Value of Property as per stamp Valuation Authority - Y?

If I fill point 2 with Y amount then that is considered for calculating Capital gains.

Also the AIS form shows values Y as the transaction amount whereas receivables for us in this transaction is only X, which doesn't include the govt taxes. Is this correct?

[mtripathi13]

Originally Posted by Shiftlock

Hi everybody,
Is there any member who is a CA, whom I can approach via a pm?

Hello Sir, I am a practising CA. If you wish you may reach me at manish.tripathi@mail.icai.in.
Regards.
Manish

[mtripathi13]

[quote=Lij;55801

In the Schedule for capital gains there are 2 field where I need clarity and which values of the above should go here.
1. Full Value of consideration received/receivable - X?
2. Value of Property as per stamp Valuation Authority - Y?

If I fill point 2 with Y amount then that is considered for calculating Capital gains.

[/quote]

Dear Member,

Capital gain will be calculated on higher of actual consideration or stamp duty value.

AIS info is dependent on punching of data by Registering authority. Ideally they should report the actual consideration but we all know that we don't live in an ideal world.

Regards
Manish

[binand]

Originally Posted by NomadSK

You are holding an NRE/NRO account and Transferring the money to your Wife's resident account/Saving account

Neither. The account was held in a honest-to-god foreign bank account (a bank registered in a foreign country, at a branch in the capital city of the aforementioned foreign country). The transfer in question was through the SWIFT system.

Originally Posted by NomadSK

- That said, IT authorities could ask your wife to furnish the source of your income/bank transaction/your NRI proof to verify that the money sent by you is not an illegal transaction.

I am not an NRI, but I do have the proof (bank statements, work permit etc.).

Originally Posted by mtripathi13

In any case the said amount can be justified as short term loan and its repayment. Nothing in law bars it.

The only thing that can be a bone of contention, is that the interest earned by your wife on such fd may be clubbed in your income as per section 64.

Other than that if the money trail can be clearly established and documents kept in records, I do not see any reason to worry.

Thanks for the reassuring words. The money trail is clear (I have all documentary evidence for it). I'll take my chances on the clubbing provision.

[Habanero City]

Originally Posted by mtripathi13

Please do not report anything as exempt income.

Regards
Manish

Hi Manish,

Any reason or experience for the above advice.
Is it harmful to report interest income from PPF or gift to family members etc., ?

Thanks

[mtripathi13]

Originally Posted by Habanero City

Hi Manish,

Any reason or experience for the above advice.
Is it harmful to report interest income from PPF or gift to family members etc., ?

Thanks

Sir,

May be my intent is not clear in those words. Let me rephrase. The incomes which are exempt u/s section 10 and its various subclauses should be reported in the exempt income section. There is no second thought on that. My advise was only in respect of amount received from spouse. Such an amount is a capital receipt and not an exempt income. In exempt income only those incomes which are specifically exempt as per different provisions of section 10 need to be reported.

I hope I have addressed your doubt.

Regards
Manish

[Habanero City]

Originally Posted by mtripathi13

Sir,

My advise was only in respect of amount received from spouse. Such an amount is a capital receipt and not an exempt income.
I hope I have addressed your doubt.

Regards
Manish

Manish,

How to handle the amounts transferred to / received from spouse (non returnable basis) and also exempted income such as interest from PPF.
So far I have not included such items in the ITR.
Should anything to be done about this?

Thanks

[mtripathi13]

Originally Posted by Habanero City

Manish,

How to handle the amounts transferred to / received from spouse (non returnable basis) and also exempted income such as interest from PPF.
So far I have not included such items in the ITR.
Should anything to be done about this?

Thanks

Dear Habanero City,

The incomes which are exempt are covered from section 10(1) to section 10(49) of the Act. Some examples of such incomes which are exempt u/s 10 are gratuity, PPF interest, EPFO receipt, HRA (subject to limits), lic policy (conditional), scholarships, awards etc. If you receive any of the income covered under these sections, you have to mandatorily report them in the ITR.

Gifts to/from spouse is not an income, hence there is no need to report in ITR. However, the best course of action is to execute a gift deed on stamp paper mentioning he details of gift and notarize the same. If that is not possible, please keep a letter of intent from the spouse wrt the amount gifted. These will help in case questions arise later on. Care should be taken to ensure that the gifting is done through banking channels.

Regards
Manish

[thanixravindran]

Originally Posted by mtripathi13

Hello Sir, I am a practising CA.

Hello Manish

One query - I checked my AIS and it seems interest from SGB is missed reporting. Do you see this normally in your profession as I am surprised how RBI can miss this reporting being government entity. Anyway I will be adding manually for tax return. Is there specific place to add it in ITR or should it be clubbed with savings interest?

Also for a share sold with profit with STCG but the selling price is higher in AIS than what I sold for. In my investigation, it seems to have picked up on the settlement date T+2. It seems a double whammy when the share you sold hits the upper circuit next day and lost that profit but tax person takes that price

Have you come across this case and any recommendation to deal with it?

[mtripathi13]

Originally Posted by thanixravindran

Hello Manish

Anyway I will be adding manually for tax return. Is there specific place to add it in ITR or should it be clubbed with savings interest.

Have you come across this case and any recommendation to deal with it?

Dear thanixravindran,

SGB interest forms part of other sources. If do you do not find a place, put in in others and mention as SGB interest.It is not savings interest and should not be added with it.

In respect of CG, pls report the correct figures which can be substantiated with contract notes. The correct data in respect of income should go in the ITR.

If the data in AIS is incorrect please document it and keep in records. But just because a figure appears in AIS, it is not correct to report the same in the ITR,more so if it is incorrect.

Regards
Manish

[satnan]

We moved into our new house on 15th March. I am filing my IT return and have a few queries related to the same:

1. I believe I can claim full exemption for the home loan interest (Rs. 2,00,000/) even though we occupied the house only 15 days in the last financial year.

2. In assets and liabilities section, can I show the full value of the house (land purchase, stamp duty, construction and interiors)? What kind of proofs are required here? And can this amount be used to calculate capital gains if we decide to sell the house later?

3. The house is registered in my name and my wife's name, but purchased completely from my funds. What should be the percentage ownership I should mention while claiming Home loan interest deduction - 100%, or we can have any arbitrary split like 90%-10%? (and do I mention the same percentage value of overall house value in the assets and liabilities section too)?

2. Any need to show notional rent for the our previous house (were we stayed till 15th March), but no tenants occupied in the last year?

Manish, other experts, would appreciate if you can clarify above points.

[sdp1975]

How long does it take for tax payment to show up on the e-filing website ? I paid self assessment tax on July 4 for AY23-24 and I still don't see it on AIS. Should I wait or raise a grievance ?

[rx100]

Originally Posted by sdp1975

How long does it take for tax payment to show up on the e-filing website ? I paid self assessment tax on July 4 for AY23-24 and I still don't see it on AIS. Should I wait or raise a grievance ?

I’m not sure about the time to reflect in AIS, but I think it displays under current FY(23-24) AIS only. Self assessment tax I paid for FY 21-22 is displaying under AIS 22-23.

Also while filling tax returns forms, there’s a provision to fill the self assessment tax under Taxes paid section. We have to enter amount, challan number and few other details.

[sups]

I have a basic query on income tax.

Let us assume, I transfer Rs. 10000 every month to my wife's account and she invests that money in fixed deposit with that bank. Since she is a housewife, the interest earned from the fixed deposit is below taxable limit. This means that she does not have to pay tax on the interest earned.

My question: Is this allowed as per income tax rules? Or shall I have to pay tax on the interest earned as I have transferred the money to her? In case it is allowed, what is the maximum amount I can transfer to her for which I do not have to pay tax on interest earned?

[thanixravindran]

Originally Posted by sups

I have a basic query on income tax.

Let us assume, I transfer Rs. 10000 every month to my wife's account and she invests that money in fixed deposit with that bank. Since she is a housewife, the interest earned from the fixed deposit is below taxable limit. This means that she does not have to pay tax on the interest earned.

My question: Is this allowed as per income tax rules? Or shall I have to pay tax on the interest earned as I have transferred the money to her? In case it is allowed, what is the maximum amount I can transfer to her for which I do not have to pay tax on interest earned?

While you await a qualified CA like Manish for reply, AFAIK, it is just treated as gift to relative as spouse comes under relative definition and it is non taxable on receiver. Since the interest earned is less than threshold, it is also non taxable. Hope your spouse has PAN card and can file zero returns.

On a lighter note, I am scared and hope our finance minister does not read your post about clubbing income to the original earning member