Capital gains
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 January 2012
dear sirs, my name is k gangadhararao,i am TRP(TAX RETURN PREPARER) One of my clint gained a capital gain Rs. 20,00,000/- on sale of a house.before he selling he expnditure for boundry and other items Rs. 100000, he include the expenditure in sale deed and he get Rs, 20,00,000 as capital gain. in ay 2008-09. he did not show his expnediture in his return, he deposited 21,00,000 in sbi capital gain deposit scheem.(he filed his return availing u/s 54 Rs. 20,00,000 for ay 2008-09). he did not utilesed with in the time period. after three years three months, he withdraw the amount. now my query is
1) he did not utilised with in the time period, so the entire amount ie Rs. 21,00,000 as income ( other income or capital gain income).
2) he can claim his expditure Rs. 1,00,000 in his current year return.
3) he is getting a salary income of Rs. 523600 p a.,for a y 2011-12, how compute the taxable inocme
1) he did not utilised with in the time period, so the entire amount ie Rs. 21,00,000 as income ( other income or capital gain income).
2) he can claim his expditure Rs. 1,00,000 in his current year return.
3) he is getting a salary income of Rs. 523600 p a.,for a y 2011-12, how compute the taxable inocme
21 January 2012
why anonymous??? what u r afraid of ??
come wid ur identity will reply.
come wid ur identity will reply.
21 January 2012
why anonymous??? what u r afraid of ??
come wid ur identity will reply.
come wid ur identity will reply.
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 January 2012
dear sir, my name is k gangadhararao,i am TRP(TAX RETURN PREPARER,T006002907) One of my clint gained a capital gain Rs. 20,00,000/- on sale of a house.before he selling he expnditure for boundry and other items Rs. 100000, he include the expenditure in sale deed and he get Rs, 20,00,000 as capital gain. in ay 2008-09. he did not show his expnediture in his return, he deposited 21,00,000 in sbi capital gain deposit scheem.(he filed his return availing u/s 54 Rs. 20,00,000 for ay 2008-09). he did not utilesed with in the time period. after three years three months, he withdraw the amount. now my query is
1) he did not utilised with in the time period, so the entire amount ie Rs. 21,00,000 as income ( other income or capital gain income).
2) he can claim his expditure Rs. 1,00,000 in his current year return.
3) he is getting a salary income of Rs. 523600 p a.,for a y 2011-12, how compute the taxable inocme
1) he did not utilised with in the time period, so the entire amount ie Rs. 21,00,000 as income ( other income or capital gain income).
2) he can claim his expditure Rs. 1,00,000 in his current year return.
3) he is getting a salary income of Rs. 523600 p a.,for a y 2011-12, how compute the taxable inocme
18 July 2024
Based on the information provided, let's address each of your queries regarding your client's capital gains situation and his current income:
1. **Capital Gains Deposit Scheme (CGDS) and Utilization:**
- Your client availed exemption under Section 54 by depositing Rs. 20,00,000 into the Capital Gains Deposit Scheme (CGDS) within the stipulated time frame.
- However, since he did not utilize this amount to purchase or construct a new house within the specified time period (which is usually 3 years), the entire deposited amount of Rs. 21,00,000 will be treated as long-term capital gains in the year it was withdrawn from the CGDS.
- Therefore, for tax purposes, Rs. 21,00,000 will be considered as long-term capital gains in the year of withdrawal, and it will be taxable accordingly.
2. **Claiming Expenditure of Rs. 1,00,000:**
- If your client incurred an expenditure of Rs. 1,00,000 on boundary and other items related to the sale of the house property, and this expenditure was not claimed in the original return for AY 2008-09, he cannot claim it retrospectively in the current year.
- The tax laws do not allow retrospective claims for deductions or expenses that were not initially claimed in the relevant assessment year.
- Therefore, the expenditure of Rs. 1,00,000 cannot be claimed in the current year return.
3. **Tax Computation for Current Year (AY 2011-12):**
- Your client's current year salary income is Rs. 5,23,600 per annum.
- To compute the taxable income for AY 2011-12, you would typically deduct any eligible deductions under Chapter VI-A (like Section 80C deductions for investments, etc.) from the gross salary income.
- After deducting eligible deductions, your client's net taxable income will be calculated.
- Based on the taxable income, the applicable income tax slab rates for AY 2011-12 would be applied to compute the income tax liability.
- It's important to consider any other sources of income your client may have apart from salary, such as interest income, rental income, etc., which would also contribute to his total taxable income.
### Summary:
- The amount of Rs. 21,00,000 deposited in the Capital Gains Deposit Scheme (CGDS) will be treated as long-term capital gains in the year it was withdrawn due to non-utilization within the specified period.
- The expenditure of Rs. 1,00,000 related to the sale of the house property cannot be claimed in the current year as it was not claimed in the original return.
- For AY 2011-12, compute your client's taxable income by deducting eligible deductions from his gross salary income and apply the applicable income tax rates to determine the tax liability.
For accurate and specific advice tailored to your client's situation, considering the complexities of tax laws and regulations, consulting with a tax professional or chartered accountant would be advisable.
1. **Capital Gains Deposit Scheme (CGDS) and Utilization:**
- Your client availed exemption under Section 54 by depositing Rs. 20,00,000 into the Capital Gains Deposit Scheme (CGDS) within the stipulated time frame.
- However, since he did not utilize this amount to purchase or construct a new house within the specified time period (which is usually 3 years), the entire deposited amount of Rs. 21,00,000 will be treated as long-term capital gains in the year it was withdrawn from the CGDS.
- Therefore, for tax purposes, Rs. 21,00,000 will be considered as long-term capital gains in the year of withdrawal, and it will be taxable accordingly.
2. **Claiming Expenditure of Rs. 1,00,000:**
- If your client incurred an expenditure of Rs. 1,00,000 on boundary and other items related to the sale of the house property, and this expenditure was not claimed in the original return for AY 2008-09, he cannot claim it retrospectively in the current year.
- The tax laws do not allow retrospective claims for deductions or expenses that were not initially claimed in the relevant assessment year.
- Therefore, the expenditure of Rs. 1,00,000 cannot be claimed in the current year return.
3. **Tax Computation for Current Year (AY 2011-12):**
- Your client's current year salary income is Rs. 5,23,600 per annum.
- To compute the taxable income for AY 2011-12, you would typically deduct any eligible deductions under Chapter VI-A (like Section 80C deductions for investments, etc.) from the gross salary income.
- After deducting eligible deductions, your client's net taxable income will be calculated.
- Based on the taxable income, the applicable income tax slab rates for AY 2011-12 would be applied to compute the income tax liability.
- It's important to consider any other sources of income your client may have apart from salary, such as interest income, rental income, etc., which would also contribute to his total taxable income.
### Summary:
- The amount of Rs. 21,00,000 deposited in the Capital Gains Deposit Scheme (CGDS) will be treated as long-term capital gains in the year it was withdrawn due to non-utilization within the specified period.
- The expenditure of Rs. 1,00,000 related to the sale of the house property cannot be claimed in the current year as it was not claimed in the original return.
- For AY 2011-12, compute your client's taxable income by deducting eligible deductions from his gross salary income and apply the applicable income tax rates to determine the tax liability.
For accurate and specific advice tailored to your client's situation, considering the complexities of tax laws and regulations, consulting with a tax professional or chartered accountant would be advisable.
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