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.