Aug 26, 2023 Benefit of house rent allowance is not available if you are the owner of the house. Any profit or loss from dealing in futures & options have to be reported under the head “Profit and gains from business or profession”. You cannot claim tax benefit for money gifted to your parents
Aug 19, 2023 Any allowances that has not been spent should be included in salary as income while filing tax return. The income tax department can levy a penalty of 200 per cent of the tax on undisclosed income. When units in the source scheme are redeemed for STP, the same is treated as transfer for the purpose of income tax and have to be disclosed
Aug 12, 2023 Interest earned from recurring deposit is taxable; and, if any property is received as a gift from a relative, then the same would not be taxed in the hands of the recipient; tax deducted from monthly salary is based on total taxable wage expected during a financial year.
Aug 05, 2023 You may have to pay tax on capital gains even in case of deferred payment. Wedding gifts are not taxable in hands of bride and groom, irrespective of value. If you gift your house to your brother, you will have to pay stamp duty and registration charges on market value of the property
Jul 29, 2023 As per the Income Tax Act, a minor’s income must be added to the parent’s income; however, if the child earns it from his special talent, it is taxed in the hands of the minor.
Jun 10, 2023 No deduction can be claimed under Section 80C in respect of principal repayment made prior to the year of possession. There is no provision for tax exemption for LTCG if you repay the home loan taken for a residential house. Gifts received from certain specified relatives are not treated as income
Jun 03, 2023 One can save long-term capital gains up to Rs. 50 lakh by investing in bonds of specified financial institutions within six months from date of sale of asset. Amount transferred to wife’s account may either be treated as gift, or, loan if the money is intended to be repaid in future
May 27, 2023 You should be a joint owner of the property, should be a co-borrower, and should service the loan to avail of tax benefits for a joint home loan.
May 20, 2023 You cannot revise old income tax return. Under Hindu Law, only a coparcener can be become the karta of the HUF. Income from sale of house is taxed as capital gains
May 13, 2023 There is an overall limit of Rs. 1.50 lakh prescribed under Section 80CCE for Section 80C, 80CCC and 80 CCD (1) taken together. Construction of house has to be completed within three years of sale to be eligible for LTCG exemption. You can claim both HRA and home loan benefits provided you satisfy the conditions for availing the benefits
May 06, 2023 Rental income would be computed by deducting 30 per cent of the rent received from the gross rent received. In case of gifts made by cheque, the transaction becomes fully complete only when it is deposited in the bank account as a token of final acceptance of the gift. Each joint borrower will get the benefit of home loan in the ratio in which they are servicing the loan.
Apr 29, 2023 Under the tax laws, a person can have maximum of two houses as self-occupied. One can claim deduction under Section 80E on education loan taken for spouse. Tax on zero coupon bonds have to be paid only on maturity
Apr 22, 2023 Banks normally lend about 75-90 per cent of the value of the property as loan. Persons of Indian Origin above 18 years of age can invest in NPS. If stamp duty value is higher by more than 10 per cent of the agreement value, seller has to pay capital gains on stamp duty valuation amount
Apr 15, 2023 If an SCSS account is closed after a year but before two years, 1.50 per cent of the deposit is deducted; likewise, banks may reverse the interest credited to a matured account but not closed
Apr 08, 2023 Your provident fund contribution won’t be liable to income tax if you have contributed for more than five years. You can claim tax benefit on personal loan taken for home purchase. Putting money in a linked account for home loan repayment is equivalent to prepayment
Apr 01, 2023 For calculating exemption under Section 54, you will be entitled to take into account all the costs incurred in connection with the purchase of the new property. A single cash gift of Rs 2 lakh will attract penalty on the recipient. No need to deduct tax while paying to the contractor for renovation if you are a retired person without professional income
Mar 25, 2023 The ratio in home loan as well as the ownership ratio gets fixed at the time of payment for the property and cannot be changed later. Purchase of two flats have to be mapped individually against one flat for claiming capital gains exemption. Buy property in your name if you want to claim long-term capital gains exemption
Mar 18, 2023 Tax benefit for contribution to Tier-II available under Section 80C only for government employees. All profits earned on intraday trading and delivery-based transactions taxable. No bar on giving interest-free loan to spouse
Mar 11, 2023 Capitals gains will be computed as per the value mentioned in the stamp duty or the circle rate. Rooms in a chawl are generally held on a tenancy basis and not on an ownership basis. Indexed cost of acquisition has to be reduced from the net sale consideration for calculating the long-term capital gains
Mar 03, 2023 The donor has to pay the applicable stamp duty on the property that is to be transferred to the recipient as gift. Non-resident status is determined differently under FEMA and Income-tax Act. Gift received from grandfather not taxable in hand of grandchildren
Feb 25, 2023 You can set off the taxable long-term capital gains against a shortfall in your basic exemption limit; In the case of joint buyers of a property, every joint owner has to deduct tax on the amount paid for the asset
Feb 18, 2023 Home loans depend on the eligibility of the borrower and the residual life of the property as determined by the bank. Rent received from house property is treated as income. Expenses on registration and stamp duty on home is eligible for deduction under Section 80C within the overall limit of Rs 1.5 lakh
Feb 11, 2023 Interest paid to friends and relative on money borrowed for house purchase, renovation and repairs can be claimed under Section 24 (b) of the Income-tax Act, 1961. Dividend income is taxable on accrual basis. Holding period for calculating capital gains is to be calculated from the date of purchase by the original owner
Feb 04, 2023 Whether profits on delivery-based transactions will be taxed as business income or capital gains will depend on factors like transaction volume, frequency, average holding period, etc.
Jan 27, 2023 It is advisable to invest in equity mutual funds early in career. A deduction of Rs 5,000 is available within the overall limit of health insurance exemption under Section 80D for preventive health check-up