Income declaration scheme 2016

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SWARNA (Querist)
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18 September 2016 INCOME DECLARATION SCHEME 2016

In the following cases please let us know the amount to be offered for income declaration and tax be paid.

1. An assessee and his brother were co-owners of a property inherited from they father. They sold the property in the Financial year 2012/13. They sold for Rs.90,00,000 and each shared Rs.45,00,000 lakhs. The tax preparator has omitted to include capital gains in the income returned. Now what is the income to be offered and tax to be paid. While arriving at income whether they can deducted value of property as on 1.4.1981 and brokerage paid at the time of sale of property.

2. An assessee purchased the property for Rs.20,00,000 stamp duty and regd charges were paid in sum of Rs.2.40 Lakhs Forty Thousand as guide line value was Rs.30 Lakhs in another words the assessee has regd the documents for Rs.20 Lakhs as against guide line of Rs.30 Lakhs. Now how much is the income to be offered under the scheme and tax to be paid and what is the deduction he is eligible for.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 September 2016 They have to consider the market value as on 01/06/2016 of the property or any other asset purchased out of such undisclosed income and pay 45% tax on it.

Kaushik Joshi

Kaushik Joshi (Expert)
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19 September 2016 Dear Swarna, 1. co owners need to disclose the 'income from the transaction' which shall be calculated after deducting the selling expenses and the indexed cost of acquisition. so in each person's declaration show the capital gain. Further as pointed out by fellow expert, you'll need to disclose any property purchased from the proceeds if not shown earlier. 2. Value of purchased property is to be taken as per a valuers report as on 01.06.2016. no deduction is allowed under the scheme and tax paid is not refundable.

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