Renovation expenses tax deductible while calculating capital gain on house sale
February, 19th 2013
I am an IT consultant. I received certain fee from my clients who did not deduct any TDS. Do I need to pay advance tax?
As per Section 209 of the Income Tax Act, 1961, the tax deductible or collectible shall not be reduced from the amount of tax calculated on the estimated income to determine the advance tax payable, if the payer has paid or credited the income without deduction, or if the money is received or debited by the recipient without collection of tax. Therefore, as you have received fees without deduction, you will be liable for payment of advance tax.
I could not file my I-T returns for FY11 & FY12. Can I file the returns now?
As per provisions of the Income Tax Act, if a taxpayer has not furnished the return of income within the time allowed under Section 139(1), he may furnish the return of income at any time before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. Thus, you can file the return of income for FY11 by March 31, 2013, and for FY12, by March 31, 2014.
In 2010, I spent R7.5 lakh on renovating my house held for more than eight years. Now, I need to sell this house. Can I claim deduction of renovation expenses besides the cost of the house while calculating capital gain?