Income tax on sale of undeclared house property
This query is : Resolved
08 April 2019
I am a regular income tax payer but my wife is not. She has a house constructed in her name about 8 years ago which is lying vacant. Only once to claim refund TDS on interest income, she filed ITR showing some notional rent from it otherwise the house property is undeclared. It was constructed with some savings and assistance from parents etc. There is no record of the money spent for construction or its value today. What will be tax implications if the house is sold and how can it best handled?
09 April 2019
What is meant by some notional rent income?
Have you ever furnished her Balance Sheet data ? I presume that the same were not required to be given.
If it has been declared as the income of the property under question, you can sell the property and after indexation of the cost incurred , you should pay capital gains tax , or purchase a new property in her name.
Have you ever furnished her Balance Sheet data ? I presume that the same were not required to be given.
If it has been declared as the income of the property under question, you can sell the property and after indexation of the cost incurred , you should pay capital gains tax , or purchase a new property in her name.
09 April 2019
Thank you Sir. No balance sheet was required to be filed nor wait filed. Notional rent was shown in ITR filed by her only once in the last 8 years since house was constructed to claim refund of TDS of Rs 1800 or so on FD interest. Now will she be required to give details of sources of income etc.get house evaluated as its actual cost is not known being constructed over period of time and details of expenditure on construction not maintained. Sorry for inconvenience Sir
10 April 2019
You must be knowing the sources and the amount spent. Take the year wise expenditure made say in FY 2008-09 -3,50,000 2009-10 230000 . The first important thing is to disclose the sales consideration in the ITR, which is the current event. Take lesser pain about the past and source. The question as regards cost may even not be raised if the same appeared to be realistic.
10 April 2019
Thank you very much Sir. I am now prepared to go ahead. Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Value of property in capital gain
- SFT Cash Deposit in Current Account
- Copyright software
- Multiple trade mark
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- TDS APPLICABILITY....../
- Transporter Declaration form
- E-Invoice applicability for new Startup
- Filing of MSME 1 form by companies
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
