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Old 8th September 2015, 12:57   #766
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On which date had you submitted your ITR / e-verified your ITR?
Was it ITR1 or ITR2/2A?
Me too got my refund today! I had filled ITR 1 on 28th August. I make it a point to have some excess money deducted as TDS so that 143(1) notice serves as an indication that my return has been seen by IT! Kudos to IT department for prompt service.
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Old 8th September 2015, 13:49   #767
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On which date had you submitted your ITR / e-verified your ITR?
My return was uploaded on 20/07/2015. It was successfully e-verified on the same day.
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Was it ITR1 or ITR2/2A?
ITR - 1.
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Old 9th September 2015, 01:30   #768
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Hi everybody.
I filed my daughter's returns on 20/8/15 and got the refund credited into her bank account on 3/9/15. Just 13 days and less if you count the number of working days.
On a different site I posted about it and one of the 3 explanations that I gave was that maybe the government had collected so much extra taxes on fuel that they could refund it so quickly.
But whatever the reason who is complaining? At least not me
Regards
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Old 9th September 2015, 13:05   #769
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Originally Posted by hserus View Post
On the same lines interest that accrues in a fd or value that accrues in a mutual fund aren't taxed - what gets taxed is of interest or maturity amount from the fd is credited to your bank account or if you redeem the mutual fund units......................

It isn't income unless it's in your hands
This is correct only if the person consistently follows cash (or receipt) basis of accounting for all his other incomes. Otherwise, interest on fd's is liable for tax on accrual basis as well. Infact, practically, it makes sense to offer it for tax on accrual basis where tax was deducted by banks because such TDS credit would be appearing against your PAN number in the year it was deducted and it is straight forward procedure to offer the interest income for tax and claim TDS credit. Otherwise, we have to show the TDS deducted during the year and show that no credit is being claimed against the same for the year and then link such outstanding credit in the year when the interest is finally offered for tax.

Gains from mutual funds is a different topic altogether. For any gains arising out of mutual fund investments to be liable for tax, 'sale' should happen. Till the time they are sold, their carrying value (NPV) keeps changing on a daily basis but it accrues to the holder only when they are sold or redeemed. Interest on the other hand, is income if it is accrued (on lapse of certain period) though it might be actually paid to the holder at a later date (on maturity)
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Old 14th September 2015, 15:55   #770
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Sorry to be asking a last-minute question, but our accountant seems too busy, or even he is confused!

I am a senior citizen of 63 years of age. My income is entirely from two sources:

1. Interest on fixed deposits.
2. Pensions paid by previous-employers' pension schemes.

I have no income of any kind that can be called salary, wages, fees, profits, or any kind of business at all.

Do I have to pay advance tax?

My reading of the announcements is that I do not, and that it is better earning interest in my accounts than paying out now.
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Old 14th September 2015, 19:09   #771
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Originally Posted by Thad E Ginathom View Post
Sorry to be asking a last-minute question, but our accountant seems too busy, or even he is confused!

I am a senior citizen of 63 years of age. My income is entirely from two sources:

1. Interest on fixed deposits.
2. Pensions paid by previous-employers' pension schemes.

I have no income of any kind that can be called salary, wages, fees, profits, or any kind of business at all.

Do I have to pay advance tax?

My reading of the announcements is that I do not, and that it is better earning interest in my accounts than paying out now.
I am no longer expert, but from my basic knowledge, your pension qualifies under salary and along with bank interest is to be treated at end of the year. So, in a nutshell, you need to pay income tax only by end of the financial year.
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Old 14th September 2015, 19:40   #772
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On Capital gains topic:
Assume a person has sold property to close the home loan burden. During registration, he has paid 1% Tax. Based on the indexation, the sold amount is used to close the home loan and EMI to get the property docs to buyer.
Now, from one of the CA i came to know the we cannot use the property sold amount to close home loan. It seems firstly we need to pay the Capital Gains tax first and remaining can be used for closing Homeloan. I am not able to reflect this in the ITR1 form.

For example:
10yrs ago property bought for 25lakhs. Mar 2015, sold for 60lakhs. Since its above 50Lakhs, person has paid 1% TDS Tax. Now, this is reflected in Form26QA.
Except 3.5 lakhs, all other amount was used to close the outstanding home loan amount and also to release the tenants lease.
At this context, should we pay the Capital gains. The whole purpose of selling property was to close the huge loan.

Please help or advice how to proceed. Would be helpful please.
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Old 14th September 2015, 19:48   #773
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

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Originally Posted by Thad E Ginathom View Post
Sorry to be asking a last-minute question, but our accountant seems too busy, or even he is confused!

I am a senior citizen of 63 years of age. My income is entirely from two sources:

1. Interest on fixed deposits.
2. Pensions paid by previous-employers' pension schemes.

I have no income of any kind that can be called salary, wages, fees, profits, or any kind of business at all.

Do I have to pay advance tax?

My reading of the announcements is that I do not, and that it is better earning interest in my accounts than paying out now.
You don't have to pay advance tax. From http://taxguru.in/income-tax/what-ar...-citizens.html .

Quote:
From From Financial year 2012-13 resident senior citizen, not having any income chargeable under the head “Profits and gains of business or profession”, shall not be liable to pay advance tax and such senior citizen shall be allowed to discharge his tax liability (other than TDS) by payment of self assessment tax.

Last edited by sdp1975 : 14th September 2015 at 19:57.
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Old 14th September 2015, 22:30   #774
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Originally Posted by null View Post
... in a nutshell, you need to pay income tax only by end of the financial year.
Quote:
Originally Posted by sdp1975 View Post
You don't have to pay advance tax. From http://taxguru.in/income-tax/what-ar...-citizens.html .
Thank you both. I'm sorry to join the thread with a last-minute question.
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Old 15th September 2015, 07:43   #775
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Friends, Please suggest. it would be helpful as I have not filed IT returns yet.

Quote:
Originally Posted by blackstallion76 View Post
On Capital gains topic:
Assume a person has sold property to close the home loan burden. During registration, he has paid 1% Tax. Based on the indexation, the sold amount is used to close the home loan and EMI to get the property docs to buyer.
Now, from one of the CA i came to know the we cannot use the property sold amount to close home loan. It seems firstly we need to pay the Capital Gains tax first and remaining can be used for closing Homeloan. I am not able to reflect this in the ITR1 form.

For example:
10yrs ago property bought for 25lakhs. Mar 2015, sold for 60lakhs. Since its above 50Lakhs, person has paid 1% TDS Tax. Now, this is reflected in Form26QA.
Except 3.5 lakhs, all other amount was used to close the outstanding home loan amount and also to release the tenants lease.
At this context, should we pay the Capital gains. The whole purpose of selling property was to close the huge loan.

Please help or advice how to proceed. Would be helpful please.
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Old 15th September 2015, 08:49   #776
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Quote:
Originally Posted by blackstallion76 View Post
On Capital gains topic:
Assume a person has sold property to close the home loan burden. During registration, he has paid 1% Tax. Based on the indexation, the sold amount is used to close the home loan and EMI to get the property docs to buyer.
Now, from one of the CA i came to know the we cannot use the property sold amount to close home loan. It seems firstly we need to pay the Capital Gains tax first and remaining can be used for closing Homeloan. I am not able to reflect this in the ITR1 form.

For example:
10yrs ago property bought for 25lakhs. Mar 2015, sold for 60lakhs. Since its above 50Lakhs, person has paid 1% TDS Tax. Now, this is reflected in Form26QA.
Except 3.5 lakhs, all other amount was used to close the outstanding home loan amount and also to release the tenants lease.
At this context, should we pay the Capital gains. The whole purpose of selling property was to close the huge loan.

Please help or advice how to proceed. Would be helpful please.
So, you have sold your property and closed the Home loan account using the sale proceeds. That means you have made like a One Time Full settlement.
Prinicipal Paid on housing loan is available as deduction under 80C . Interest Component is also available as deduction as income from house property (sec 24)

Yes, you cannot deduct the loan repayment amount in Capital Gains Income. But, you can claim the entire principal and interest amount paid for that year to reduce your total income .
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Old 15th September 2015, 09:06   #777
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Originally Posted by blackstallion76 View Post
Assume a person has sold property to close the home loan burden.
Quote:
Originally Posted by blackstallion76 View Post
Friends, Please suggest. it would be helpful as I have not filed IT returns yet.
First of all, if you have a complex taxation question it is always recommended to take advice from a professional. Your CA should be in the best position to advice you, not some random bunch of people on the Internet.

Second, your question itself wasn't very clear which is why I ignored it. It is always a problem to refer to oneself in the third person. That the seller paid 1% tax at the time of registration is plain wrong. The buyer is expected to deduct 1% as TDS, not the seller.

Third, it might be a good idea to give the actual details instead of made-up numbers. A property bought in March 2005 for 25L and sold in March 2015 for 60L attracts only about 1.3L tax at the time of sale (back-of-envelope calculation). With 1% TDS, the seller needs to pay tax of only about 70K. You say you have 3.5L surplus? That should be ample to cover the tax liability.
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Old 15th September 2015, 12:37   #778
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Originally Posted by blackstallion76 View Post
Friends, Please suggest. it would be helpful as I have not filed IT returns yet.
Hi
as other members have posted, some facts of your query are not clear. But, based on the example quoted by you, rough calculations indicate that tax liability on long term capital gains from sale of house property would be in the range of 1.30 to 1.50 lacs. If the buyer has done TDS (on sale value of 60 lacs), remaining tax payable would be in the range of 70 to 80k. Pl note that the manner of utilisation of sale proceeds (closure of loan etc) does not have any bearing on the capital gain tax liability. It is only if you are investing the sale amount in another house property / certain specified investments, some exemptions can be claimed out the capital gains arising. All these are again subject to certain conditions regarding time limit of investment, mode of investment etc.

Principal component of loan pre-paid and interest paid on such loan for the year can be considered for deduction u/s 80c (capped at 1.50 lacs) and for arriving at the income from house property, respectively.

All this is an overall response for your query. But, you should consult a CA with complete details and documents so that correct amount of tax liability can be worked out and return of income can be submitted accordingly.

PS: Didn't quite understand the surplus part of 3.50 lacs in your query. For a property bought @ 25 lacs and sold @ 60 lacs, even after pre-closure of loan etc, surplus should be much more than 3.50 lacs unless there are some other factors like repayment defaults leading to accumulated interest, penalties etc
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Old 15th September 2015, 14:40   #779
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@null; the possibility of paying at the end of the year is available to all senior citizens, ie over 60 years. I was in service but still took advantage.
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Old 15th September 2015, 15:52   #780
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@null; the possibility of paying at the end of the year is available to all senior citizens, ie over 60 years. I was in service but still took advantage.
Yes Sir. Thanks for the clarification. Even SDP1975 has explained the same above. I just knew that pensioners, with no other sources of income other than pension & bank interest, need not file quarterly/advanced tax.
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