Very urgent

Tax queries 814 views 8 replies

Mrs.X has income from pension of Rs.85000 and long term capital gain of  Rs.3.5 lakhs n sale of a plot  and want to know whether fixed deposits which have been renewed for a  period of 1 yr can be claimed as a deduction?

2. How to save Long term capital gain tax bkz already Mrs.X hold a resdential house property.

Replies (8)

Hi,

1)LTCG will be taxed @ 20% .but unabsorbed exemption limit is avialiable if Mrs X is resident

2)No.FD for 1 year is not tax saving insrument

3)invest capital gain in NHAI bond.refer NHAI site.Investment wihin six month

-Regards 

Can you give any other investment option apart from NHAI Bonds?

Dear Sonia..........

Ded u/s 80C - Fixed Deposits in a bank not less than 5 yrs........

LTCG from sale of Plot therefore, the sections applicable here are 54F and 54EC.........

54F talks about Transfer of Capital Asset (Long Term) other than Res. house and pur / const. of Res. house............ The Assessee should not own more than One Res. hosue........

54EC - Transfer of LTCA and investment in Specified Assets....i.e. REC and NHAI bonds.....within six months from the date of transfer......

Dear Mam,

Chapter VI A cannot be claimed in respect of Long Term Capital Gain.

As Balaji Bhai has right mentioned that FD shuld be of minimum 5 years. bu making FD for 5 years the pension of 85k can be reduced to Nil. 

Further Entire exemption limit can be utilized if the status is of Resident.

 Sec 54F & 53EC can be availed.

Any brought forward Capital Loss can also be adjusted. 

 

agree with amir

Dear Mam,

in your case if Mr. X was a governent employee then the amount of pension recieved by him will be fully exempt from tax

Further, if you want to save capital gain fom sale of land Then as per Sec 54 EC you can invest entire amount in Either NHAI or Rural Electrification Ltd.

Chapter VI A cannot be claimed in respect of Long Term Capital Gain

FD shuld be of minimum 5 years.

Hi, Exemption under these two section can be claimed,

U/S 54EC & 54F- These two are the only two options available...

Dear Sharad,

To the best of my understanding,the Pension received would be taxable even for a Govt. employee.For example, if a retired Central Govt. employee receives pension, would it be tax-free?If so,under which section?

As usual, Amir has given the best solution covering every aspect.


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