Shubham Agrawal, Senior Taxation Advisor, TaxFile.in replies, “You have got utilised many of the sections obtainable for tax profit. Nonetheless, you may discover Part 80E in case you are paying curiosity on any schooling mortgage and 80G in case you have made charitable donations to eligible organisations. Guarantee that you’ve got claimed depart journey allowance in case you have travelled inside India for a vacation over the past monetary 12 months.”
In 1987, my mother and father constructed a home on a plot that was bought in 1977 for Rs eight,000. This home was offered in January 2020. My mother and father are senior residents with no different revenue. The home was constructed utilizing a house mortgage of Rs 60,000, however we are able to’t discover every other development value associated paperwork. Do they should pay capital gains tax on this transaction?
Amit Maheshwari, Companion, AKM World replies, “Capital beneficial properties tax @ 20% (plus surcharge and cess) needs to be paid. Because the property was bought earlier than 1 April 2001, it’s value shall be the upper of honest market worth as on 1 April 2001 or the precise value of acquisition, which shall be additional listed to the 12 months of sale. Aside from the price of land, you may embrace the curiosity paid on mortgage and every other value for which you might have enough paperwork obtainable. Relating to submitting of taxes, as a aid measure resulting from Covid, time interval for claiming exemption by re-investing capital acquire proceeds has been prolonged to 30 September 2020 and the due date of submitting of return has been prolonged to 30 November 2020 together with the date for fee of self-assessment tax within the case the place such legal responsibility is as much as Rs 1 lakh. There isn’t a legal responsibility to pay advance tax in case of resident senior residents who don’t have revenue from any enterprise or career.”