[binand]

Originally Posted by rajesh1868

Few months back, my late father's demat account was transferred to me. What are the tax implications of this for me? I haven't done any transactions yet on those shares and it was in that account for at least 4 years.

1) Is there a tax to be paid for the transfer, on the total worth of security?
2) Will I have to pay tax if i sell something (even if it is a loss considering the purchase price)?

Pardon me if I sound naive,
3) If I sell and keep the amount in the demat account itself (so that I can buy on an opportunity), is there a tax implication or does it come only when i transfer the money to my bank account?

Since India doesn't have inheritance tax, I don't think it has any tax implications for you (except, your share of your father's wealth might result in your income moving into a different taxation slab).

1. No inheritance tax, so nothing to be paid. Ask a tax practitioner though.

2. Since the shares were held for 4 years, I think only LTCG rules will kick in even if you sell (10% on indexed gains, iirc). You might even be able to offset the losses.

3. Demat accounts are for shares etc. They don't store money. The money is stored in a linked regular savings account, which is treated like any other account. The third linked bit - the trading account - is where you swap money in your savings account with shares in your demat account.

[rajesh1868]

Originally Posted by binand

Since India doesn't have inheritance tax, I don't think it has any tax implications for you (except, your share of your father's wealth might result in your income moving into a different taxation slab).

Thanks a lot binand.

[hothatchaway]

For those whose returns for AY 19-20 is yet to be processed.

Hundreds of taxpayers are believed to have received notices from the income tax (I-T) department whose systems are unable to process the tax returns correctly. This has led to bloated tax liability on capital gains and denial of credit for tax deducted at source (TDS), among other discrepancies.

https://economictimes.indiatimes.com...w/72931397.cms

[pandey.jai]

Can someone help me understand the rules surrounding income tax relief that can be claimed on interest on housing property?

My current situation is that I've booked a flat in another city where my parents stay. The flat is under construction. I booked it in Nov 2018 and it was registered in my name on Nov 2019. The construction is on-going and the builder has promised to deliver the property by May 2020. I have a loan which I'm paying the interest for. I've also paid a little in excess and thereby reduced the principal by about 1L.

Now in this case, can I claim any relief of up to Rs 2lac under any of the sections? Or does that opportunity arise only when it is in my possession?

[Warwithwheels]

Originally Posted by pandey.jai

Can someone help me understand the rules surrounding income tax relief that can be claimed on interest on housing property?

My current situation is that I've booked a flat in another city where my parents stay. The flat is under construction. I booked it in Nov 2018 and it was registered in my name on Nov 2019. The construction is on-going and the builder has promised to deliver the property by May 2020. I have a loan which I'm paying the interest for. I've also paid a little in excess and thereby reduced the principal by about 1L.

Now in this case, can I claim any relief of up to Rs 2lac under any of the sections? Or does that opportunity arise only when it is in my possession?

Since the property is under construction, you cannot claim any deductions now.

However, The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh.

The principal repaid during the under construction period cannot be claimed as a deduction at all.

For more details on other deductions post your taking over, please refer https://www.myloancare.in/tax-benefit-on-home-loan/

[pandey.jai]

Thank you for taking time to respond.

Originally Posted by Warwithwheels

However, The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh.

Can you help me understand this? Does it mean that say I take possession of the property in Apr 2020, then the interest paid from Apr 2020 to Mar 2021 can be claimed in my 2021 returns and if that amount is less than Rs 2 lakh, then the interest paid in 2019-20 (now) can be claimed up to a total of Rs 2 lakhs?

[rdst_1]

Hi guys,
I need help in understanding something. My father passed away in 2016. In May 2019, his employer, IDBI Bank, paid us, via my Mother's Family pension account, an amount of roughly 6L as his salary arrears. For us, his heirs, this money is inheritance, so no tax should get applied. However, for normal people, when they are paid arrears like this, there is a complicated process where they have to re-calculate IT liability for all the years the arrears have been paid for and submit the difference to the IT department.
Would we have to do the same for this amount we have received and how as we don't have any access to my father's IT filings. Also, how do we show this money that we have received in my mother's or all the heirs ITRs for this financial year.

[saisree]

Originally Posted by pandey.jai

Thank you for taking time to respond.
Can you help me understand this? Does it mean that say I take possession of the property in Apr 2020, then the interest paid from Apr 2020 to Mar 2021 can be claimed in my 2021 returns and if that amount is less than Rs 2 lakh, then the interest paid in 2019-20 (now) can be claimed up to a total of Rs 2 lakhs?

Interest paid before the possession of the house is called Pre-EMI and comes under a different Section of the IT Act altogether. This Pre-EMI has to be divided in to 5 equal parts and claimed in subsequent 5 financial years.

Interest paid after the possession can be claimed upto 2 lakhs in the same financial year. Principle paid towards the loan comes under your 80 C.


Did anyone try this 80EEB?

Budget 2019 not only brings a new section 80EEA for interest exemption of addition Rs 1. 5 Lakhs for an affordable home loan, but also introduced section 80 EEB which would give tax exemption up to Rs 1.5 Lakhs on interest paid for the purchase of electric vehicles.

The most important point the exemption u/s 80 EEB not only permitted for 4 wheeled vehicles but also for 2 wheeled vehicles.

[hserus]

If that amount is < 2 lakh then the pre construction interest paid DIVIDED BY 5 can be claimed in 2021 post handover of the flat. The remaining 4/5 are claimed 1/5 each time in the subsequent 4 years.

Originally Posted by pandey.jai

Thank you for taking time to respond.

Can you help me understand this? Does it mean that say I take possession of the property in Apr 2020, then the interest paid from Apr 2020 to Mar 2021 can be claimed in my 2021 returns and if that amount is less than Rs 2 lakh, then the interest paid in 2019-20 (now) can be claimed up to a total of Rs 2 lakhs?

[concorde24]

How long an Income tax Return can be open? Is there any rule for this?

My AY2015 is transferred to Assessing Officer with pending due. I have disagreed with demand and asked for details and it is still open. My AY2016 is processed complete and closed. I have sent couple of mails to AO email id but no response till now. Any suggestions for next steps?

Thanks!

[SideView]

Originally Posted by concorde24

How long an Income tax Return can be open? Is there any rule for this?

My AY2015 is transferred to Assessing Officer with pending due. I have disagreed with demand and asked for details and it is still open. My AY2016 is processed complete and closed. I have sent couple of mails to AO email id but no response till now. Any suggestions for next steps?

Thanks!

You better follow up and close ASAP. Not sure if(mostly they might) they will add penalties until 2020 incase any discrepancies are found.

[hserus]

Originally Posted by rdst_1

Hi guys,
I need help in understanding something. My father passed away in 2016. In May 2019, his employer, IDBI Bank, paid us, via my Mother's Family pension account, an amount of roughly 6L as his salary arrears....

....we don't have any access to my father's IT filings. Also, how do we show this money that we have received in my mother's or all the heirs ITRs for this financial year.

First make sure death certificate, legal heir certificate etc are in place. Then read this carefully. https://www.basunivesh.com/2015/06/3...x-after-death/

[blorebuddy]

Originally Posted by SideView

You better follow up and close ASAP. Not sure if(mostly they might) they will add penalties until 2020 incase any discrepancies are found.

My AY 2019-20 returns are transferred to AO and it's pending in the same state for 3-4 months. No query has been raised to me so far. I do not have email id of AO. How I will be able to chase AO to do their job?

[hserus]

Originally Posted by blorebuddy

My AY 2019-20 returns are transferred to AO and it's pending in the same state for 3-4 months. No query has been raised to me so far. I do not have email id of AO. How I will be able to chase AO to do their job?

"Transferred to AO" means this is being handled by your local income tax office concerned ward / circle, rather than their central processing centre in Bangalore. Your best bet is to hire a CA, give him all the details he needs and let him do the following up.

[rdst_1]

Originally Posted by hserus

First make sure death certificate, legal heir certificate etc are in place. Then read this carefully. https://www.basunivesh.com/2015/06/3...x-after-death/

Thanks. I knew that we needed to file for my deceased father, but the above link is really detailed as to how to go about it. Using these, I could file his ITR for the AY when he passed away.
However, there still are some complications in my case. I'd like to present some more details which will be helpful.

a) My father was employed till Spetember 2014. He passed away in April 2016.
b) We have received 2 forms of arrears.
i) Salary Arrears from Nov 2012 to Sep 2014. We have the details of how these were calculated
ii) Commutation Pension Arrears - I don't have the details but have requested on how these were calculated. These could have 2 components viz. Arrears for Commutation of Pension and Arrears for the Pension since Sep 2014.

Here are the complications which I can see -

a) I can file his ITR for AY 2016-17 by registering as legal heir by following the details provided in the link you have provided. However, can I use the same to file the revised ITRs using Form 10E for AY 2013-14, AY 2014-15 and AY 2015-16 using the details of the Salary Arrears we have received. However, how can I track down his actual ITRs and Salary Slips for those years. The ITRs might be available in his email account from where I have garnered the other details but not salary slips. And I also don't know about any of his FDs or Tax-saving investments for those years.

b) For the AY 2015-16,the calculations are very complex. Thankfully, I have his ITR calculations provided to him by his employer considering the Gratuity and other money he received on retirement. I might even track down his actual ITR.
For this year, another factor comes into play, which is Commutation of Pension which I believe is tax free. So arrears for commutation will also be tax free.
However, after Sep 2014,he was receiving monthly pension and if there are arrears for those, then I will have to see to them as well when calculating how much more money we have to pay

c) After April 2016,my Mom was receiving Family Pension and if the second arrears do have a Pension component then I will have to file Form 10E for last 3 years for her as well.