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 Have you claimed education cess? Be prepared to pay tax as per the new rules
 Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBIOS, 2021)
 How is tax computed for selling a house?
 How much tax do you pay on equity investments?
 Fuel taxes: Centre s gains striking since FY16
 Tax rules for NRIs on sale of assets located in India
 ITR filing: Know tax rules that apply to freelancers in India
 Delhi Real Estate News: NDMC extends last date for property tax payment with amnesty scheme
 Citizens must file THESE ITR related forms before due date Income Tax Returns
 If a senior citizen makes FD in name of his son, who will pay tax on interest?
 Your queries (Income Tax): Use ITR Form 2 to file tax on capital gains on sale of property
  Why you must verify your income tax returns
 Relief for top management including foreign partners, directors in tax matters
 Ready for futures and options? This is how you will be taxed
 

Your queries (Income Tax): Use ITR Form 2 to file tax on capital gains on sale of property
January, 27th 2022

I plan to sell a plot of land purchased 18 years ago. What will be my tax liability from the sale proceeds and how can I save tax? How can I pay as my taxes are getting deducted by the office itself in advance in installments from March to February?
—Suman Shome

 

The long-term capital gains arising on transfer of immovable property are taxed at 20%. To ascertain the amount of capital gains, indexed cost of acquisition, improvement and expenses incurred in connection with the transfer are to be deducted from the sale proceeds. If net consideration arising on sale of asset is invested for purchase of a residential house property (one year before or within two years from date of transfer) or for construction of a residential dwelling (within three years from the date of transfer) then proportionate capital gains are exempt under Section 54F, if an assessee does not own more than one residential house property on the date of transfer. Alternatively, you can claim deduction under Section 54EC by invest-ing the gains in bonds of REC/NHAI, within six months of transfer. The total investment in the financial year and the subsequent financial year is limited up to Rs 50 lakh. You have to file Income Tax Return form 2, wherein you have to furnish information as to your total income and tax thereon. Discharge tax liability by payment through an authorised bank or through the internet by availing e-Tax payment facility.

I worked in the US from 2016 to 2018 and got company shares for $50,000 and savings in bank $20,000. I shifted to India in 2019 and I submitted ITR-2 in AY 2020-21. As my annual package crossed Rs 50 lakh, in ITR-2 in Assets & Liability section I showed that money after converting into INR. Is this the correct way to file the return?
—Pareshnath Mandal

A resident assessee having any assets including financial interest in any entity located outside India has to make disclosures in “Schedule FA-Details of Foreign Assets and Income from any source outside India.” The foreign assets duly reported in the Schedule FA are also required to be reported in “Schedule AL-Assets and Liabilities at the end of the year” as your total income exceeds Rs 50 lakh. Accordingly, you may revise your return in order to rectify the errors made in disclosure.

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