Query on Income tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 June 2010
My friend is a gov. servant. He purchased a house and based on this purchase he won another house in a lucky draw. His annual income is Rs. 500000/- (Five Lakh say) and the market value of the property won is Rs.800000/- (Eight lakh) and it is under construction. He has paid Rs. 25000 as stampduty and Rs 10000 as registration fees. He will also pay Rs.65000 towards meter charges, society charges etc for this property . What will be his tax liabilities?
There are many questions like
1) Wheteher Market value of property will be added in his salary income for tax calculation or it will be considered separately for tax? if separate what will be the rate of tax?
2) Whether expenses towards registration of property, stampduty, meter charges etc will be deducted from the market value of the property for income tax calculation?
3) When he becomes liable for payment of income tax for above property after registration or after getting possession/occupation of the property?
4) Whether all the income tax will be paid in lump sum or it can be paid in three installemnts.
5) Whether the tax paid will be advance tax or self assassment tax? please elaborate.
There are many questions like
1) Wheteher Market value of property will be added in his salary income for tax calculation or it will be considered separately for tax? if separate what will be the rate of tax?
2) Whether expenses towards registration of property, stampduty, meter charges etc will be deducted from the market value of the property for income tax calculation?
3) When he becomes liable for payment of income tax for above property after registration or after getting possession/occupation of the property?
4) Whether all the income tax will be paid in lump sum or it can be paid in three installemnts.
5) Whether the tax paid will be advance tax or self assassment tax? please elaborate.
22 June 2010
HOUSE WON IN LUCKY SCHEME WILL NOT BE ADDED IN ASSESSEE'S INCOME IN THE YEAR CONCERNED. TAX SHALL ONLY BE PAID IF AND WHEN THE SAID HOUSE IS SOLD AND COST OF ACQUISITION SHALL BE TAKEN AS NIL PLUS EXPENSES INCURRED ON CONSTRUCTION AND REGN ETC. OR COST OF ORIGINAL HOUSE SHALL BE DIVIDED BETWEEN TWO PROPERTIES DEPENDING ON THE FACTS OF THE CASE AND SCRUTINY OF THE DOCUMENTS BUT TAX IS NOT PAYABLE ON ANY VALUE TILL THE PROPERTY IS SOLD OUT
22 June 2010
Agreed, It is the case like bonus share.
COst of acquistion of House (Won) will be nil plus expense incurr for acquiring it.
Tax will be paid at the time of sale which will be Short Term or May be Long term.
COst of acquistion of House (Won) will be nil plus expense incurr for acquiring it.
Tax will be paid at the time of sale which will be Short Term or May be Long term.
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