Anitha (Articles) (121 Points)
19 August 2016Hi All,
Kindly clarify me regarding Income Declaration scheme 2016.
This is a case of sale of land and purchase of Residential property. sec 183 (4) states, No deduction in respect of any expenditure or allowance shall be allowed against the income in respect of which declaration under this section is made. Refering with above section, whether sec 54F exemption can be claimed for the purpose of computing taxable capital gain under the said scheme.
Thanks in advance
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160909 Points)
Replied 19 August 2016
Income Declaration scheme 2016 and deduction u/s. section 54F, are totally different, and not inter connected in any manner.
When you have sold the land and purchsed house property, section 54F is applicable, but not section 183.
If you wish to declare your recent house property under Income Declaration scheme 2016, you cannot streach section 54f here.
Anitha
(Articles)
(121 Points)
Replied 19 August 2016
Sir,
Since the asset was sold in 2012-13, there is no possibility to file return now without receiveing notice under sections of income tax.
so, only choice now is Income Declaration scheme.
Kindly clarify whether whole capital gain (sales less indexed COA) is taxed at 45% . Why 54F deduction is not available, then it would lead to large amount of tax.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160909 Points)
Replied 19 August 2016
The property which you sold, you cannot declare now. From the sales proceeds what you aquired or hold now i.e. the house property, can only be declare in the scheme.
But here, if you have its stamped (circle rate) value, you can get the indexation benefit and thus can reduce considerably your present FMV.
suresh
(proprietor)
(425 Points)
Replied 19 August 2016
If the land you have sold has already been declared and acquired from the source of income you declared earlier in your tax returns, then you can work out your tax liabity for A.Y. 2012-13 and avail the tax deduction u/s 54 F. After availing the deduction if you dont have any tax liabity then no need to file the return for A.Y/. 2012-13. But if there is tax payable after taking deduction, you have to wait for notice to file the return.
And if you want to go for IDS, 2016 then you have no option but to pay the tax @ 45% on the value of the property you want to disclose under the scheme as on 01/06/2016.
Anitha
(Articles)
(121 Points)
Replied 19 August 2016
But the dept have issued notice stating the sale value and asked to disclose under the scheme. Moreover sale price is higher than purchased one. Why assessee can't disclose that sale value under this scheme
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160909 Points)
Replied 19 August 2016
The CBDT has issued a Notification dated 17th August 2016 by which Rule 3(1)(d) of the Income Declaration Scheme Rules 2016 have been amended to provide that where the acquisition of immovable property by the declarant is evidenced by a deed registered with any authority of a State Government, the fair market value of such property shall, at the option of the declarant, may be taken on the stamp duty value as increased by the same proportion as Cost Inflation Index for the year 2016-17 bears to the Cost Inflation Index for the year in which the property was registered
If you have received any communication from department, better get it clarified personally properly from any local expert.
CAclubindia
