My father built a house in Jharkhand in 2000, for which the full fee incurred turned into Rs 15 lakh. I had booked a flat in Mumbai at the pre-launch level 5 years ago. I took a domestic mortgage of Rs 30 lakh. The overall feel of the belongings is Rs forty-three. Five lakh. I got ownership on April 20. We need to promote each residence and purchase a flat in Mumbai for Rs 1.Five crores. We expect Rs 50 lakh from the sale of the Jharkhand belongings and around Rs 60 lakh from the sale of the Mumbai flat.
The plan is to apply the proceeds from promoting the Mumbai flat to pay off the house loan and use the stability money to e-book a brand new flat. Also, the proceeds from the sale of Jharkhand house will be used to funding the acquisition of the proposed flat in Mumbai. How can we keep on longtime capital advantage tax on this transaction, and what is the time period within which those transactions need to be completed? –ABHIJEET SINHA
On the sale of the belongings located in Jharkhand, your father might be subjected to long-term capital profits tax.
Regarding the flat at Mumbai owned using you, it is beneficial not to take ownership from the developer and assign the rights you have obtained beneath a settlement. The authority can be given to the prospective purchaser to take possession immediately from the developer. He will be eligible to say deduction below Section fifty-four of the Income Tax Act 1961 provided he acquires co-ownership rights in the new flat together with you and makes the investment at least equal to the long-term capital gains accruing to him.
, Both you and your father may be entitled to claim the deduction, although below one-of-a-kind sections of the Income Tax Act, 1961. If you take ownership of the flat after which transfer the same, dispute may also get up with the tax branch as there are conflicting choices as to whether or not the gains might be dealt with as long-time capital gains or quick-term capital gains. The long-time period capital gains on the switch of the rights can be prompt towards your seasoned-rata investments inside the new flat, which you may acquire on a co-ownership foundation beneath Section fifty-four.
The deduction underneath Sections fifty-four and 54F is to be had best against lengthy-term capital gains. It will rely upon the records of the case and how the transaction is established.
I plan to forestall my SIPs in ELSS as I have taken up a task abroad. Will this have a massive impact on the tax I will be paying? Do you advocate I preserve with my ELSS SIPs until the financial year to avail of the tax benefit even though I may not be running in India anymore? –MAMTA PAI
Investments below systematic investment Plan (SIPs) in Equity Linked Saving Scheme (ELSS) qualifies for deduction under Section 80C of Income Tax Act, 1961 with the maximum restriction of Rs 1,50,000 at the same time as computing taxable earnings under the provisions of the Act. The deduction is to be had best for the amount contributed underneath the scheme. Depending upon your gross total earnings, you ought to decide whether or not you must hold to invest or prevent them. Your popularity could be non-resident beneath FEMA as soon as you’re taking up a job abroad. Your investments in India have to also comply with FEMA Regulations.
New Delhi: Subsidised cooking fuel (LPG) rate on Wednesday became hiked via 28 paise in keeping with the cylinder and now fees over Rs eighty-two extra than the rate in 2014 when the BJP government got here to electricity. Also, the Jet fuel (ATF) charge was hiked by way of over 2.5 in line with cent, the third instantly monthly boom in costs at the return of firming global fees, according to a fee notification issued by state-owned oil firms.
The rate of Aviation Turbine Fuel (ATF) was hiked by way of Rs 1,595. Sixty-three per kilolitre, or 2.Five in step with cent, to Rs sixty-five,067. Eighty-five according to kill inside the national capital. The increase comes again with a Rs 677.1 consistent with kl hike in costs effected from April 1, and a steep 8.1 percent (Rs four,734.15 consistent with kl) soar in costs on March 1. LPG charge turned into hiked using Rs zero.28 in step with the cylinder and non-subsidized gas with the aid of Rs 6 per bottle.