Dear Sir/Madam
If you sold the property it results in capital gain and such income is taxable in your hand are as follows
Full Value of Consideration 49,00,000
Less:- Expenses with respect to transfer No details available
Net Consideration 49,00,000
Less:- Index Cost of Acquisition 31,85,629
(19,00,000*280/167)
Long Term Capital GAIN 17,14,371 RS
If RS 17,14,371 is invested in Capital Gain Fixed Deposit Scheme then it should be lock for 3 years and interest on FD is available. and Rs 17,14,371 should be exempt.
But according to question it is normal fixed deposit made by you as per my think
in that case whole some of RS 1714371 is taxable.
also rented income from house goes to the House property income and FD interest income goes to Income from Other sources.
Considering the above, Advance tax on capital gain is applicable when it is received and not on accrual basis . In this case the Advance tax next due date to pay tax is applicable and it is 15th DEC if arises before 15 th DEC or otherwise 15th march .Any payment made till 31 st March is also treats as advance tax.
Considering Above Provision , You are liable for advance tax and if the advance tax is not paid within due date you are liable to pay interest @ 1% p.a on tax.
Yes If you are not invested in Capital Gain Account Scheme of Bank as a FD of such capital gain calculated above it is more than RS 1000000 so it put you into 30% tax bracket. but there is an alternative to resume from such tax is You can invest Capital Gain Amount before filing return of income in respective branch of bank allowed in the Capital Gain account scheme in that case Capital Gain is exempt and you are not liable to pay tax because considering the above FD interest and Rent income is RS 190000 only and it is below the threshold limit of RS 250000. Therefore any tax deducted as TDS claim as Refund from Government.
If My Opinion is wrong please correct me for improvisation my knowledge.
CAclubindia
