Hi,
Can you please be little specific. What do you mean by process involved? You will have to show capital gain in your ITR2, pay taxes or take exemption and file return.
Payment of maintenance charges cant be deducted while computing capital gain.
Tax payment proceedure in case of two house property in my name.
I work in a public sector company and retiring in 2020. I purchased two flats in Bangalore between 2010 and 2012.I took bank loan for the one I let out in 2012 and claimed rebate under income tax till now.The loan is paid up fully as on date and i wish to declare the occupancy status of my flat as self occupied from let out . The other flat which i purchased as mentioned above has been sold out in the month of January 2019 . i have been regularly paying maintenance charges for this flat right from the time of purchase till January 2019 without fail. Incidentally i have declared the purchase details of both my flats in my company's records but the same has not been mentioned in my income tax declaration since 2011. Only the details of my flat which is let out and for which i took loan and claimed income tax rebate until recently has been furnished under ITR1 . I now intend to file my return in ITR 2 giving complete details of income by way of Capital Gain realised out of sale of my flat mentioned above. What is the process involved to make it happen with all the details given above.Also can i get the advantage of the maintenance charges which i paid since 2011.
Asked 5 years ago in Income Tax
Hi,
- You should file ITR-2 to show capital gain income and salary income. The self occupied property should be shown as self occupied property.
- If the total income is more than Rs.50 lacs then you need to fill assets and liabilities details also.
- You can take the help of any of us in filing the ITR.
- Reconcile 26AS and Form 16.
Thanks
i want to know if the total maintenance charges paid from 2011 till 2019 for the flat which i sold in 2019 can be deducted from my gross taxable income. For your kind information i have not claimed this amount in any of the previous years.
Asked 5 years ago
Yes you can claim it.
Any expenses incurred to keep the house habitual is allowed. Maintenance charges will be allowed.
No, you can't get deduction of maintenance charges.
First of all you need to calculate capital gain by deducting indexed cost of acquisition from sale price of the flat.
You can't take benefit of maintenance charges from capital gain or any other income paid till now as it is not allowed in income tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
Mention the flat which was earlier let out and now self-occupied under House property head as Self Occupied
And the other flat which is sold will be mentioned under the head Capital gain while calculating long term capital gain on it. No deduction of maintenance charges will be available.
Regards,
CA Hunny Badlani
No deduction would be available now in the year. You should have claimed in the year of payment.
Dear Sir,
Hope you are doing well !!
ITR 2 is applicable for individuals and HUFs who do not have any business income. Meaning, anyone having incomes from Salary, House Property, Capital Gains or Income from Other Sources (combination of any) can use ITR 2.
Hence, ITR-2 will be required in your case.
The routine expense such as repair, maintenance and painting is not considered as the cost of an improvement. Only the capital expenses are considered as the cost of an improvement.
So, you can not get deduction of maintenance charges.
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