Will ltcg now stands reversed, if yes stcg will nullify?
Icarus Patel (25 Points)
18 October 2016Icarus Patel (25 Points)
18 October 2016
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(194008 Points)
Replied 31 October 2016
Mainly long term capital gain tax of about 5 lakhs required to be paid as condition of section 54 not satisfied. For short term, it will be mostly absorbed in basic exemption limit so not big burden. Advised to file return with the paid up tax liability, to save from future trouble.
Icarus Patel
(25 Points)
Replied 01 November 2016
dheerajbhai,
so there will be two calculations?
ltcg amount , tax to be paid on 23 lacs approx @ 20%
stcg amount however since i am unemployed it will be exempt
i was under impression that i have to deduct ltcg from cost of aquisation and then pay tax on balance amount which comes to about 24 lacs
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(194008 Points)
Replied 01 November 2016
Interpretation of both is same, there is no difference, just for your clarification: 25L minus (78K*939/351) = app 23L LTCG
What different deduction you have in mind?
Tax @ 20.6% would be around 4.75L
Icarus Patel
(25 Points)
Replied 01 November 2016
dhirajbhai,
as under
LTCG of old house -2324076
Cost of new house- 3000123
(including club house + developmet chgs and service tax on it as it was underconstruction , apart from stamp +reg chgs paid and service tax, not including maintainence charges for 2 1/2 years charged in advance)
adj cost =3000123-2324076= 676047
net sale of new house :3150000
Total STCG =3150000-676047=2473953
tax payable on 2473953 @ 30℅= 584200
hope above is in order
the other issue is i did not declare ltcg o fy 2013-14 in sunsequent itr filing any remedy
thankyou
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(194008 Points)
Replied 01 November 2016
Not correct method. Short term gains is just total receipts of new flat i.e. 31.5L less all the payments made till date over the flat including club house, developmet chgs and service tax on it as it was underconstruction, stamp +reg chgs paid and service tax etc. etc. means almost NIL gains.
Now, upto the basic limit the L T gains will be adjusted and over and above that it will be taxable.
Finally, once again, advise you to take help of any local CA/tax consultant for the filling of the ITR, to avoid future litigations.
Icarus Patel
(25 Points)
Replied 01 November 2016
thanx dheerajbhai will consult local ca definately
tax @ 20.6 or 30℅
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(194008 Points)
Replied 01 November 2016
Long term capital gain is taxed at 20% (i.e. with cess 20.6%). You will not fall in the slab of 30% as per above data.
Icarus Patel
(25 Points)
Replied 01 November 2016
Ohk. Sir, this means that whatever property transaction I did after selling will be null and void and I just have to pay tax on ltcg.
1) will I have to pay the tax as advance tax
2)or along with normal ITR in AY 2016-17
Now the question is will I have to pay penalty as in AY 2014-15 ltcg gain was not declared.
Also the proceeds from old house was deposited in bank account wherein my wife was first holder and myself second holder. Old house was in my name singly. Is that important from tax purview
Thanks
Icarus Patel
(25 Points)
Replied 04 November 2016
dhiraj bhai i have conuslted local CA who calculated tax exactlg as u did. thank u
however he told me i have to pay penalty (on tax payable on LTCG ) from july quarter till next date that isdecember.
is that correct
Icarus Patel
(25 Points)
Replied 04 November 2016
dhiraj bhai i have conuslted local CA who calculated tax exactlg as u did. thank u
however he told me i have to pay penalty (on tax payable on LTCG ) from july quarter till next date that isdecember.
is that correct
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(194008 Points)
Replied 04 November 2016
He is correct as per the law.
Icarus Patel
(25 Points)
Replied 04 November 2016
ok sir, however on LTCG of rs 2303585 (he took stamp paper and reg charges in calculataion of purchase price of old house) he has arrived tax figure as rs 474539
but when i crossed checked with income tax website calculator it is displaying different figure as under.
capital gains 2303585
LTCG @ 20℅= 410717
edu cess 8214
sec nd high ed cess 4107
asessed tax 423038
is there some error in calculator as if we take 20% then it should be 460717 and not 410717.
also penalty applicable will be 1% for each quartr.i.e 2% . and is it calculated on total tax liability or amount not paid in these 2 quarters.
thnx