Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: empanelment :: due date for vat payment :: VAT RATES :: form 3cd :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

QUERY CORNER: Tax Exemption
February, 02nd 2010

I sold my flat at Rs 15.50 lakh in August 2009. I booked a flat for Rs 20 lakh and the agreement will be entered in December 2009-Feb 2010. I will pay Rs 15.50 lakh by April 2011 and take a loan for the balance amount. Will I be able to claim the long-term gain on sale of my flat by utilising the sale proceeds in this way? Or by which date should I get the possession to claim the long-term tax benefit under Section 54?

SK Gokhale

To be eligible to claim exemption under section 54, you have to invest the amount of long-term capital gain arising from sale of your flat in a new residential house. Section 54 also stipulates that the new residential house can be either purchased within two years from the date of sale or constructed within three years from the date of sale of the old house.

Unfortunately, what constitutes a purchase is not clearly specified in the law. In my view, it would be safer to consider that the purchase transaction is completed on the date of possession. Accordingly, you should obtain possession by August 2011.

What is the rule position of claiming income-tax benefits on home loan for husband and spouse if the interest component is Rs 3 lakh and the principle component is more than Rs 75,000. Similarly, if the interest component is less than Rs 1.5 lakh and the principle component is less than Rs 75,000.

Ravi Gupta

The following rules apply in either of the scenarios:
a) Deduction on interest and principal can be claimed in the ratio in which EMI is borne by each of the co-borrowers. Of course, the co-borrowers should also be registered co-owners of the property
b) If the property is self-occupied, the deduction on interest is restricted to Rs 150,000 per year per co-borrower and
c) Deduction on principal repayment is covered under Section 80C of the Income Tax Act, 1961. The aggregate of deductions under sections 80C, 80CCC and 80CCD can not exceed Rs 100,000 per year per individual.

My CTC includes HRA of Rs 34,244 per month. I am living in a self-leased accommodation, in New Delhi costing Rs 30,000 per month. Would it be more tax prudent to take the accommodation on company lease compared to a personal lease?

AK Mehta

If you opt for company lease, the perquisite value of such an accommodation is added to your taxable income. Perquisite value is lower of the rent paid by the employer and 15% taxable salary income computed in a prescribed manner. If you opt for self lease, you will be eligible to claim HRA exemption. You need to compute your total taxable salary income under both the options and should select the one which is more tax-efficient.

If you pay rental higher than your HRA, then beyond a point you cant increase your HRA exemption amount.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions