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Old 17th April 2012, 12:55   #166
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Isn't it possible to claim both HRA and Tax benefits for home loan if you have given your apartment for rent and yourself stay in a rented house. Reason being own house is too far from my workplace.
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Old 18th April 2012, 21:32   #167
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Isn't it possible to claim both HRA and Tax benefits for home loan if you have given your apartment for rent and yourself stay in a rented house. Reason being own house is too far from my workplace.
Yes it is possible to claim HRA and interest paid on housing loan, both as deductions from your gross total income provided HRA forms a part of your remuneration package. The interest element will be claimed as deduction under section 24 and the principal under section 80C.
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Old 18th April 2012, 22:54   #168
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Default Long term capital gains from selling house property

Suppose I sell a 6 year old flat, and put that money in a new flat, how does the tax computation work. The entire amount of sale will go into new flat.

Only one thing. In noida, you have lease hold properties, instead of freehold. Is that also counted has a home purchase.

As for selling, do I have to put money in a separate bank account and then file a return or something?

Am totally clueless about this, helllp!
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Old 18th April 2012, 23:23   #169
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Default Re: Long term capital gains from selling house property

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Originally Posted by tsk1979 View Post
Suppose I sell a 6 year old flat, and put that money in a new flat, how does the tax computation work. The entire amount of sale will go into new flat.

Only one thing. In noida, you have lease hold properties, instead of freehold. Is that also counted has a home purchase.

As for selling, do I have to put money in a separate bank account and then file a return or something?

Am totally clueless about this, helllp!
With regards to computation, the long term capital gain will be computed as follows:
Long Term Capital Gain= Sale Value - [Indexed Cost of Acquisition+ Indexed Cost of Improvement in property(if any)+ Expenses incurred directly for sale of property]

Since you have stated that the entire sale value will go towards purchase of new house property the entire capital gains will be exempt provided the purchase of the new house property is within the timeframe specified in the act which is one year before or two years after the date of sale in case of purchase or within 3 years in case of construction.
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Old 18th April 2012, 23:35   #170
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

As long as both transactions are registered and stamp duty has been paid, you will not have to pay any tax.

Just consult a CA to confirm if you have to declare this.
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Old 19th April 2012, 10:48   #171
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Default Re: Long term capital gains from selling house property

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Originally Posted by Bookkeeper View Post
With regards to computation, the long term capital gain will be computed as follows:
Long Term Capital Gain= Sale Value - [Indexed Cost of Acquisition+ Indexed Cost of Improvement in property(if any)+ Expenses incurred directly for sale of property]

Since you have stated that the entire sale value will go towards purchase of new house property the entire capital gains will be exempt provided the purchase of the new house property is within the timeframe specified in the act which is one year before or two years after the date of sale in case of purchase or within 3 years in case of construction.
I understand this part however,
1. In Noida flats are not freeHold, they are leased(90 year lease), You cannot buy a flat from a builder here, as the local authority "leases" stuff
2. What if I buy a flat today, but possession is after 5 years. What happens then? the flat has to be constructed within 2 years of sale, or I have to buy it within 2 years of sale?
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Old 19th April 2012, 11:12   #172
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Default Re: Long term capital gains from selling house property

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Originally Posted by tsk1979 View Post
I understand this part however,
1. In Noida flats are not freeHold, they are leased(90 year lease), You cannot buy a flat from a builder here, as the local authority "leases" stuff
2. What if I buy a flat today, but possession is after 5 years. What happens then? the flat has to be constructed within 2 years of sale, or I have to buy it within 2 years of sale?
You can buy the flat if I am right, it is the land that is on lease. Even if the land is on lease you are the owner of the flat/house property and the purchase of the same will be deemed to be a purchase. If you are going in for a purchase then you have do it either one year before the sale of old property or two years after the date of sale. In case of construction, the same must be completed within three years of date of sale.
And if as on the date of filing of return your amount of gain remains unutilized then you will have to opt for Capital Gain Account Scheme.
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Old 19th April 2012, 13:40   #173
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

For Fy 11-12, my wife forgot to declare intrest component for home loan in tax declaration portal of her company. I came to know about this in Apr 12. Tax for year without considering exemption for intrest component is already deducted from salary.

Though form 16 is not generated HR is saying nothing much can be done now.

I beleive, extra tax paid can be recovred using Refund but how and when? What will be exact process to follow.
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Old 19th April 2012, 13:59   #174
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by idea View Post
Though form 16 is not generated HR is saying nothing much can be done now.
I beleive, extra tax paid can be recovred using Refund but how and when? What will be exact process to follow.
True. Once paid to I-T cannot be recovered by company. It is upto the individuals to submit IT return and get refund from I-T dept.

At the time of I-T return, compute the actual tax and whatever you need to get as refund. Mention "Refund" at top of the return form. Don't forget to mention MICR of your bank account. Refund will be directly credited to your bank account.

It will take some time to get refund but eventually you will get. In case of delay, you get interest as well.
I guess nowadays you are getting refund faster - in months.
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Old 19th April 2012, 13:59   #175
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Bookkeeper View Post
Yes it is possible to claim HRA and interest paid on housing loan, both as deductions from your gross total income provided HRA forms a part of your remuneration package. The interest element will be claimed as deduction under section 24 and the principal under section 80C.
Yes one can.

For self occupied property, The interest deduction limited to 1.5L. For let out properties, the entire interest paid is deductible under section 24 of the Income Tax act. However, the rent is to be shown as income from such properties. - My 2 cents.
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Old 19th April 2012, 14:03   #176
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by iamswift View Post
It will take some time to get refund but eventually you will get. In case of delay, you get interest as well.
I guess nowadays you are getting refund faster - in months.
This proves what IT (software) can do to the community like developing countries like India.

I see Income Tax and Passport processing modernization as two good examples that impacted many lives. Wish there are more.
Mainly RTO & Revenue department. stuffs.
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Old 19th April 2012, 15:54   #177
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Quote:
Originally Posted by idea View Post
For Fy 11-12, my wife forgot to declare intrest component for home loan in tax declaration portal of her company. I came to know about this in Apr 12. Tax for year without considering exemption for intrest component is already deducted from salary.

Though form 16 is not generated HR is saying nothing much can be done now.

I beleive, extra tax paid can be recovred using Refund but how and when? What will be exact process to follow.
https://tin.tin.nsdl.com/oltas/refundstatuslogin.html

You can use the above link for tracking the status of your wife's refund once the return has been processed. Processing of returns can take atleast 5-6 months.
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Old 19th April 2012, 16:07   #178
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Default Re: Long term capital gains from selling house property

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Originally Posted by Bookkeeper View Post
You can buy the flat if I am right, it is the land that is on lease. Even if the land is on lease you are the owner of the flat/house property and the purchase of the same will be deemed to be a purchase. If you are going in for a purchase then you have do it either one year before the sale of old property or two years after the date of sale. In case of construction, the same must be completed within three years of date of sale.
And if as on the date of filing of return your amount of gain remains unutilized then you will have to opt for Capital Gain Account Scheme.
Okay, this means if I sell and buy within the same FY, and utilize my entire gain, then I do not have to do any sort of capital gain account scheme thingy?
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Old 19th April 2012, 16:35   #179
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Default Re: Long term capital gains from selling house property

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Originally Posted by tsk1979 View Post
Okay, this means if I sell and buy within the same FY, and utilize my entire gain, then I do not have to do any sort of capital gain account scheme thingy?
Exactly. If your entire amount is used to purchase a new house property in the same year then no capital gain thingy. Even if the gains are not used in the same year and maintained in a seperate account under the Capital Gain Deposit Scheme there will be no capital gains. However, if you sell the new property before three years then the entire exemption stands withdrawn.
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Old 19th April 2012, 22:27   #180
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Default Re: Long term capital gains from selling house property

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Originally Posted by Bookkeeper View Post
Exactly. If your entire amount is used to purchase a new house property in the same year then no capital gain thingy. Even if the gains are not used in the same year and maintained in a seperate account under the Capital Gain Deposit Scheme there will be no capital gains. However, if you sell the new property before three years then the entire exemption stands withdrawn.
Thanks for your detailed reply! I guess I have to purchase the flat in the same year in which I sell the old flat, and there is no account thingy issue too
One final query. Builders take money as completition happens(floor by floor some x %). So lets say I have 20L capital gain.
I give 5L to dealer now, and then 1L every 3 months.
Flat completition is after 3 years. Will I be in trouble with income tax department for buying an under construction flat which will come up after 4-5 years?
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