Tax questions

What is appropriate tax for this case?

I received money along with my bothers sisters and uncles when property inherited by us from my paternal grandfather, was sold ten years before. my 1/12th share. (2 uncles and 2 siblings and mother). Rs.10 Lac was not given by the builder then and held back as security until premises made vacant by tenants. But builder lapsed on the agreement for ten years for lack of money . Now after raising ...

Capital gains tax savings account

I made a capital gain of Rs 60 lakhs from sale of my flat in FY 20 and purchased another flat in another city within 3 months. The payment of this new flat were to be made in installments, so I opened a capital gains account in SBI. However the bank issues demand draft only towards demand notes raised by the builder. It is not even allowing payments from this CG account for property registratio...

TDS payment as per share / actual payment

Context: We are in the process of buying a land from a developer. Primary applicant is my wife, me and my Dad (62 y/o) are co-applicants. We have paid the first installment (there will be total of three installments until possession of the land). I now need to pay the TDS on the first installment. I understand that each buyer will have to file separate Form 26QB and in each buyer's Form 26QB, ...

TDS mistakenly paid fully by 1 owner instead of all 3

My parents and i bought an under construction property in Mumbai on 31 Mar 22 (registration date) and the builder paid TDS to the Govt in one owners name only on full value of consideration and not installment amount. It was mistakenly communicated to us one year later that builder had not deducted/paid TDS and 3 of us then paid TDS+interest+penalty on amounts paid till then. Few days lat...

Getting Salary in WISE account, working for US based company from Pune India

Hi there, I need help in understanding about taxation for my current situation. I have been working for a US-based company since Feb 24, I get monthly salary of 5.5k USD per month from their end, although I'm working from Pune at their client location but salary gets credited in US currency to my WISE account, which is an online bank account based of Belgium. So currently, I want to know: am...

GST Implications on Print on demand services from US based entity to US based Customers from India

The plan is to start a clothing brand, Z, as follows: Target market is the US (and Canada + Europe, if additional compliance for such nations is minimal). The business entity (Elfreds, hereby referred to as E) is an LLP based in India. E would set up an online ecommerce store (using Shopify, Woocommerce, etc.) and receive orders from US customers. E would receive the payment from the custome...

Income from US retirement fund (IRA, 401k)

It is with respect to ITR2 filing in case of income from USA specially with respect to retirement fund. In USA – the income from retirement fund is taxed on withdrawal basis and whereas in India – it is on accrual basis. The Govt has inserted a new provision in 2022 – section 89A – by which one can defer the income to future year. I have a specific question – what a right way is to report suc...

Capital gain from house property

I have bought a flat at 24 lacs (flat plus garage plus stamp duty registration)11yrs back. I sold in on April 2023 at 47 lacs. The flat was in joint name of me and my wife. I had bought another flat in sept 2022 at 67 lacs. The loan of that flat is still getting paid by me. My questions are as follows: 1. Do i have to re invest the capital gain part ie (47 lacs - 24 lacs) 23 lacs in house ...

Capital gain tax in JDA when land owner sells his share before OC - LTCG vs STCG

Looking for some clarity around capital gain taxation on sale of property in case of JDA and landlord selling the share before OC. Please consider the below series of events 1st July [deleted] syrds land procured on for a value of Rs.10Lakhs 2nd July [deleted] syrds land given to a devloper on JDA and in return taking a 200 syrd villa (land cost 10L + Building cost 15L) 20th Oct 2022 - D...

Taxability of nominees and executors

1) Assessee expired with a WILL. 2) Two persons are named as EXECUTORS. Question: As per sec. 168 of the Income tax Act, i guess they will have to apply for a separate PAN as AOP, since 2 executors..and they will be assessed as AOP. Kindly confirm. 3) Now, the nominee has received the Mutual funds and they have sold it also and proceeds are lying in the bank. This is the money of the Estate...

Seeking Clarity on Section 44AD and Investment Strategy

I need clear guidance on handling my tax affairs under Section 44AD and its implications for my investment strategy. My gross income is approximately 45 lakhs, with actual expenses and personal expenditures totaling around 15 lakhs. However, I'm encountering conflicting advice from Chartered Accountants regarding the application of Section 44AD: -One CA suggests showing actual profits. Af...

Capital gains utilization for under construction flat

I had purchased a flat jointly with my spouse (housewife) in year 2018 and sold it in year 2023. The funds from sale of property were deposited equally in my and wife's account. Recently I have booked a flat which is under construction and whose possession is in June 2025. The agreement to sale is already done in Feb 2024 and capital gain received from sale of previous flat is transferred to...

Tds remittance u/s 194ia

Dear All CAs, I booked an under-construction flat in the Navi Mumbai with a Realty Developer firm in Aug. 2023, starting with the initial booking amount of ₹2 Lakhs and then followed by regular payments at certain intervals of the progress of the construction of Plinth @5% of Agreement Value (AV) and then each floor @2% per floor slab. The Agreement for Sale was registered in this month for a ...

Foreign tax credit not considered due to late filing of Form 67

Hi, I had filed original return for AY 19-20 basis which I had received a refund of 51,880. I had filed a revised return declaring foreign income & foreign tax deducted basis which refund of Rs. 4180 was expected. However, the department did not consider the credit of foreign tax deducted as Form 67 was missed to be filed & department raised a demand of 2,31,800 (which included the refund of...

Not declared rental income for the last 10 years, being threatened to report me to income tax

I am stuck in a difficult situation. Please give me your brutal honest opinion on my situation. Here is my brief story of how I got into this situation. I got an inheritance of 10 flats in an upscale society in Noida in 2013. Once the flats were handed over to me, I rented out all 10 flats. I received rent for all those 10 flats in cash. I never declared this income. In total I received rent...

Taxation in the hands of beneficiary of renounced rights issue rights

1. There is one Company A in whom a group of individuals and a group of Corporates is holding Equity Share Capital 2. Company ‘B’ is one of the corporates holding shares, who is holding 44% stake in Equity Share Capital in the Company A 3. Current Market Value of the company’s existing shares is Rs 155 per share 4. The Board of Directors passed a special resolution to bring a Rights ...

Oci taxation

I am British citizen married to Indian citizen and I hold an OCI card as his wife. I have NRE and NRO accounts in India. I have moved money from UK to my Indian NRE accounts wanting to invest in mutual funds and buy property at some point. We are mostly in India so my tax status is resident only but I have so far not filed as I am not working and have no income in India. I have a PANCARD and ...

Impact on cheque payment for residential flat purchase

*Sub: Purchase of a flat in Chennai, Tamil Nadu.* 1. A residential flat is purchased at ₹. 49 Lacs and Sale deed registration is done at Govt guidance value which stands at ₹. 32 Lacs. The difference in sum ₹. 17 Lacs (₹. 49 Lacs - ₹. 32 Lacs) is paid by way of cheque to the seller’s relative. 2. The receiver (seller) is willing to file income tax returns for both payments (Guidance valu...

Payment of Advance Tax for a Software consultant

Hello, I'm a professional software engineer who recently experienced a layoff from a multinational corporation based in Delhi. For the FY2023-24, I worked with this company for the initial 9 months, following which I transitioned into a role as a software consultant with a Turkish company. While taxes were duly paid to the government for the first 9 months of my employment, I understand that...

I work as an independent contract for a company in India that provides services, and I expect to mak

1) Can I choose presumptive taxation? The reason I'm asking is because I work from home and my business expenses are minimal, mainly consisting of essentials like internet, electricity, mobile connection, and office supplies. Here's a breakdown of my expenses: - I spend a maximum of 10 to 15K per month (approximately 1.8 Lac per annum) on office-related expenses. - I spend around 50K for main...