Income tax return

Dear Sir,

I am not able to understand your question. Why do you need to show purchase of property in your income tax return?

Please rephrase your question as to what is your exact query.

Sir there are many case laws which says that if at the time of Agreement the assessee has paid the amount by Account Payee Cheques then the rate at the time of Agreement can be considered but that need to be clarified as many officers today also dont understand the same and need to go for appeal in which our concern can be taken care of.

Or else the difference is taxable

No, you don't have to pay tax on the difference between booking value and registered value.

You can show it in your balance sheet. You don't need to show it in your wife's account. Treat that 100000 RS. as a loan or gift from your wife to you.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Sir you can file the returns by showing 51 Lakhs. Any how a notice will come and then you can quote the following to defend your case.

In case where the date of Agreement fixing the amount of consideration for transfer of immovable property and the date of registration are not the same , the stamp duty value on the date of Agreement may be taken for the purpose of computing the full value of consideration.

This provision shall apply only in case where the amount of consideration has been paid by way of an account payee cheque or account payee bank draft or online transfer on or before the date of agreement for the transfer of such immovable property.

https://www.taxmann.com/Budget-2016-17/budget/.

This shall apply only in a case where the amount of consideration or part thereof has been received by any mode other than cash on or before the date of agreement for the transfer of property.

Dear sir,

- Yes property will be show equally in both the accounts

- Sir in case the stamp value is more than value of property than for the purpose of tax computation only you need to consider higher value by the seller. Since you are the buyer of flat you will not have any consequences.

Hi,

The asset has to be shown in both your and your wife's Balance Sheet.

Regarding additional amount paid for the property, you need not pay any Income Tax as you are the buyer. Seller has to pay Income Tax.

However, since the value of the property is exceeding Rs. 50 Lakhs, you will have to deduct TDS @ 1%

Hello Sir,

Is it mentioned in your agreement that your wife holds 50% share in the property, if that is the case then the property has to be split between you both but if the percentage is not specifically mentioned, then you may avoid showing it in both the balance sheet at equal figures and just show it at the amount paid for.

Secondly the difference between the Circle rate and the allotment value. Now this is a litigative issue since the ITO knows nothing and always thinks from the revenue point of view. SO do not even waste your time making him understand your case, simply ask him to pass an order and file an appeal. That is where you will be able to prove your point and need not pay the taxes on the differential amount.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

You can show it completely in your balance sheet. You don't need to show it in your wife's account. Treat that 100000 RS. as a loan from your wife to you.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Dear Sir,

Irrespective of amount of payment made if the ownership on document is 50% - 50% than you have to disclose the same in the balancesheet as 50% - 50% value only i.e. 25.50 Lacs ine ach balancesheet and accordingly taxability will be decided.

Sir in that case you can show that 1 lakh paid by your wife is being given as loan to you and in your Balance Sheet you can declare the same. If you have more queries you can call us to get clear and full understanding.

The Flat has to be shown in both the balance sheet at equal figure and the difference has to be shown as a loan.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Dear Sir,

You can do the same by providing that entry you clear your intention that your wife is just owner on documents and not real owner and all the income arising from the same shall be subject to taxable to you only in the future.

Sir can you please send the copy of sale deed on mail modani005@gmail.com.

You can show it only in your Balance Sheet. It will not be wrong.

Dear Sir,

It will be short term capital gain on sale of asset. Tax shall be as per the routine tax slab only.

No this amount can not be covered u/s 44AD

no expenses can be claim against capital gain except expenses for transfer of asset.

since you were claiming depreciation on the asset it always classify as short term capital gain.

Hi,

As per Section 50 of Income Tax Act, Sale of Depreciable Assets on which Depreciation is claimed will be deemed to be Short-Term Capital Gain in any of the 2 scenarios below

1) The sale consideration is more than the aggregate of the cost incurred in relation to sale of the asset, opening block of assets and any new additions to the block of assets: or

2) The block of assets ceases to exist

You cannot show this amount under 44AD as this is not a business income. However, if your total business turnover is below Rs. 2 Crores and none of the scenarios mentioned in Section 50 is satisfied, then you can offer your total business turnover under Section 44AD and you need not show this sale of asset separately.

First of all please let us know whether you have any more assets in that block or that block of assets ceases to exist.

If you still have value in that block, you don't need to show the capital gain amount in your tax return

However, if block ceases to exist or sale value of crane is more than the balance in that block, then it will be treated as short term capital gain and you have to pay tax as per the slab rate. You can't show it u/s 44AD.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

You can treat it as depreciable assets. But you cannot claim any expenditure from the same as said in your last query.

First need to check how you are treating crane whether fixed assets or current assets

1) No sir not possible

2) yea it's capital gain no expenses allowable. however any business loss in current year can be adjusted against it.

3) yes you can invest and claim benefit of section 80C

4) No for capital gain you can not file 44AD.

5) beat step. Show it as capital gain and adjust it against business loss of current year.

Dear Sir,

1. No sir, you can't treat it as business income.

2) it's short term capital gain and no expenses can be adjusted against it except selling expenses incurred if any.

3) yes you can invest.

4) No

5) you have to show it as short term capital gain and you can adjust it against any business loss of current year.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

You have to claim it while filing your ITR. Yes, you can deduct 1.5 lacs if you make eligible investment.

You have to pay tax as per the slab rate applicable.

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Sir, at the time of computation only it will get adjusted in computation.

You just need to mention details of capital gain and business loss in return.

Also deduction shall automatically applied to the same while final computation upon filling details under section 80C.

Hello Sir,

As the crane was your business asset, then it shall in all cases be considered as a Short Term Capital Gain.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hello Sir,

The answer to your queries are as follows :

1. No, you cannot treat it as your business income.

2. No, expenses cannot be claimed against this income unless it is a brokerage paid to sell of the crane.

3.Yes, you can very well invest and claim benefit u/s 80C.

4. No, return u/s 44AD cannot be filed as it is not a business income.

5. You can offset your business loss against the STCG and pay tax only on the balance as per your Slab Rate.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Hello SIr,

The Return shall automatically adjust the business loss against the STCG and also give you benefit u/s 80C.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Sir how you are treating the Assets as asked in my last answer

Yes you need to file Tax Returns for FY 2015-2016. The losses cannot be carried forward as you have not filed the return within due date. The return need to be filed as you have losses.

You can file return for 2016-17 without filing for 2015-2016.

In my opinion you need not to do tax audit if your total income before any deduction under chapter VI is less than 2.5 lacs.

Please feel free to revert in case of any doubts

Thanks and Regards

Abhishek Dugar

Ideally it is advisable to file return whenever you do any major stock market transaction, Otherwise chances are high that you will receive compliance notice.

Please feel free to revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com