Tax Implication of selling property in loss

For capital loss on sale of property, you have to compute it and show under the appropriate head in tax return form. You can set it off in future as per Income tax provisions.

On RSUs I am not an expert. 

Long term capital loss can be set off with long term capital gain.

Under any circumstamnces the basic concept remains same.

As per my understanding, Capital Loss on sale of Real Estate is not allowed to be set off against some other Capital Gain. 

Also, Income Tax Dept likely create hassle asking for solid proof about selling the property at a loss. 

Regarding your question about reporting RSU:-

My understanding is that RSU is only a written promise by your employer for future Stock Option, dependent on various conditions. It is nothing tangible in money terms in your hand at present.

So there is nothing for you to report about RSU in any return.

For RSU, considered as perquisite to be reported along with salary income

@ TK TK

Dear, you are a CA, I am just trying to learn swimming in the taxation ocean.

My understanding still remains that RSU becomes taxable and to be reported as perq, only when it is vested(meaning actual stocks are registered in the name of the employee, and which could be few years in future).

So why, and how, should it be reported as perq when, even, the value is unknown, since the vesting is to be at a future date and no one can predict the value at that date?

@ Ankur

Question for you:-

Have you already got the stocks promised in RSU registered in your name? 

Or , like I said, you will receive the stocks in future, depending on your fullfilling various conditions in your employment ?

Hi @ ranjan and all ,

Regarding RSU , Yes few units are vested in Sep-2024 and  in my form 16 xx amount is mentioned against perquisite  and added in my salary but they says Tax is also added in form16 although, I didn't find any reference for same.

not sure how dividend income on which US already deducted tax and as per the tax treaty with India I can claim the tax exemption or I need to pay difference of tax . I mean US have 25% flat tax on dividend and in India 30% tax rate so May be I need to again pay 5% tax ? not sure 

Hi @ ranjan and all ,

Regarding RSU , Yes few units are vested in Sep-2024 and  in my form 16 xx amount is mentioned against perquisite  and added in my salary but they says Tax is also added in form16 although, I didn't find any reference for same.

not sure how dividend income on which US already deducted tax and as per the tax treaty with India I can claim the tax exemption or I need to pay difference of tax . I mean US have 25% flat tax on dividend and in India 30% tax rate so May be I need to again pay 5% tax ? not sure 

Hi @ ranjan and all ,

Regarding RSU , Yes few units are vested in Sep-2024 and  in my form 16 xx amount is mentioned against perquisite  and added in my salary but they says Tax is also added in form16 although, I didn't find any reference for same.

not sure how dividend income on which US already deducted tax and as per the tax treaty with India I can claim the tax exemption or I need to pay difference of tax . I mean US have 25% flat tax on dividend and in India 30% tax rate so May be I need to again pay 5% tax ? not sure 

@ Ankur

About RSU, since already vested and value shown in Form-16 as Perq, you will need to report as Perq in ITR. If TDS was deducted, it should show in Form-26AS, which you need to get before preparing ITR.

About tax on dividend income from USA, depends on whether you are NRI or Indian Resident. The ITR forms are capable of guiding you, I think, because there is filling space for every type of income and reporting of tax already paid.

Or take the help of your employer accounts officer.

Hi Ranjan,

Thanks . Deducted tax is also shown in Form16 against RSU. I think only for dividend income we need to show.

Any idea where to show sell of property loss in ITR2 ? Do I need to provide the buyer details ?

Hi Ankur

Regarding property sale question:-

Since the sale value was below 50lakh, so no TDS by the purchaser. So you need to collect copy of registration document from the purchaser, because you will need in future for answering any questions from I T Department.

Regarding reporting in ITR-2, there is Schedule CAG in which you will have to report providing various details of the purchase value, date of purchase, sale value, date of sale .

The gain will be negative so the ITR-2 form should calculate and you may be eligible for some refund.

Because it is likely to be a large refund, tax people will definitely ask more details from you, so be ready for that.