Hi,
I have sold a house which is applicable for STCG.
In order to calculate my tax liability, is the following formula correct?
Tax liability = (Sale price) - (1% TDS as deposited by buyer) - (cost of acquistion) - (stamp duty paid in acquisition) - (brokerage paid during sale)
Regards
STCG = sale consideration - cost of asset - stamp duty - brokerage (expenses on transfer can also be reduced)
TDS cannot be reduced from sale consideration but can be adjusted against final tax liability.
Thanks Poornima.
Does this mean that
Tax payabale = [(Applicable TAX slab) * (STCG)] - (1% TDS paid by buyer)
Regards
Yeah right
One more question: To file this tax, we need to use ITNS 280? Is the due date for tax filing dependent on date of sale? Or is September the cutoff?
Also, any documents to be submitted to IT department?
Fill in the details in the ITR and compute the tax liability (along with interest). Such amount has to be paid as self assessment tax using challan 280. Income tax has to be paid in advance before end of FY (subject to certain exemptions) and if not, interest is applicable u/s 234B & 234C.
Due date for filing of return is 31st August (this year only) and there is no need to submit any TDS challan but instead the details of the same have to be mentioned in the ITR.
Thanks a lot!
CAclubindia
