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Your Queries – Income Tax: Cannot adjust LTCG gains against payments for flat made over 5 years

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Assuming that your total income comprises only this STCG, which is less than the basic exemption limit, (i.e. Rs 2.5 lakh), you do not need to file a Return of Income in India.Assuming that your complete earnings includes solely this STCG, which is lower than the essential exemption restrict, (i.e. Rs 2.5 lakh), you don’t want to file a Return of Revenue in India.

I booked a flat 5 years in the past and paid the instalments from my financial savings and capital positive factors from promoting shares. It is going to be registered this monetary 12 months. I purchased a flat in Mumbai in 2009 and can promote it this 12 months. For the long run capital achieve arising out of promoting the flat, can or not it’s adjusted towards the funds already made to the builder for the previous few years?
—Immadi B Rao
The long-term capital positive factors from sale of a residential home property (held for greater than 24 months) might be claimed as exemption beneath Part 54 by re-investing in one other residential home property inside one 12 months earlier than or two years after sale or in constru-ction of one other home property inside three years of sale. It has been held in numerous case legal guidelines that coming into into a purchase order settlement for a brand new home is adequate compliance and registration is just not necessary. The property was bought/ booked by you 5 years in the past. That being the case, conservatively, it’s advisable that exemption beneath Part 54 is just not claimed because the stipulated time strains for reinvestment aren’t fulfilled, which can result in litigation.

Do I’ve to point out capital positive factors earnings (LTCG/STCG) in ITR even when I re-invest the capital positive factors once more in shares and MFs?
—Raj Shekhar Kashyap
A taxpayer should essentially disclose earnings earned from all sources, in a monetary 12 months, whereas submitting IT Return. Subsequently, long run/ brief time period capital achieve on sale of property have to be reported within the ITR, regardless of whether or not the sale proceeds are reinvested elsewhere or not.

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As an NRI, if the brief time period capital achieve in fairness is lower than Rs 2.5 lakh, do I have to file ITR? Additionally, will any TDS be deducted on the revenue?
—Altaf Patel
As per the Revenue Tax Act, a non-resident particular person/HUF can’t regulate the essential exemption restrict towards brief time period capital achieve (STCG) coated beneath Part 111A. Subsequently, you shall be liable to tax on brief time period capital achieve on sale of fairness shares on the price of 15% on your entire positive factors. TDS shall be accordingly deducted on the price of 15% on such earnings. Assuming that your complete earnings includes solely this STCG, which is lower than the essential exemption restrict, (i.e. Rs 2.5 lakh), you don’t want to file a Return of Revenue in India.

The author is director, Nangia Andersen India. Ship your queries to

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