[itwasntme]

Another Capital Gains (CG) query! Elderly neighbour asked me for help as follows:

He and his wife (~78 & 71 years currently) bought a resale apartment in Kolkata.
The Sale Agreement was in August 2020. Paid full consideration via cheque and all these were duly documented.
Request for a registration date (at relevant Sub-Registrar) was made immediately.
Possession was given again in August 2020, and they did extensive renovation work too.
Due to some local issues at the SRO, the property was registered only in March 2021.

His (rather urgent) query is what is the Date of Acquisition to be taken in this case? They are looking to sell the property, and have found a known solid buyer but are concerned about LTCG vs STCG. As far as I know, the immovable asset holding period is now 24 months rather than 36 months. But he is not convinced!

Any thoughts please?

[mtripathi13]

Originally Posted by itwasntme

Another Capital Gains (CG) query! Elderly neighbour asked me for help as follows:

He and his wife (~78 & 71 years currently) bought a resale apartment in Kolkata.
The Sale Agreement was in August 2020. Paid full consideration via cheque and all these were duly documented.
Request for a registration date (at relevant Sub-Registrar) was made immediately.
Possession was given again in August 2020, and they did extensive renovation work too.
Due to some local issues at the SRO, the property was registered only in March 2021.

His (rather urgent) query is what is the Date of Acquisition to be taken in this case? They are looking to sell the property, and have found a known solid buyer but are concerned about LTCG vs STCG. As far as I know, the immovable asset holding period is now 24 months rather than 36 months. But he is not convinced!

Any thoughts please?

Hello Sir,

There are legal decisions affirming that date of agreement to sell is relevant for considering the period of holding. Please take opinion from a professional if you need assurance. In my opinion, there is no problem in considering the date of agreement as start of date of holding of the property.

Yes, the answer to your other question is 24 months.

Regards
Maish

[ZenMaster]

Is there any existing post on how LIC returns are taxed?


I have received an amount in my account from an LIC policy that my father took in my name.

The taxation part is honestly very confusing.

Also, if X% has been already deducted as TDS, Do I need to pay only the remaining % as per slab if my LIC return is taxable?

Is there any link in LIC, where I can get all the particulars of an LIC policy (like no of years invested, premium values etc.) if I enter the Policy Number?

[dass]

LTA Question - If the travel is undertaken in March, when can we make the claim? This has always been confusing and I have missed claiming it couple of times, so asking this question.

[Mahesh Babu]

Originally Posted by ZenMaster

Is there any existing post on how LIC returns are taxed?


I have received an amount in my account from an LIC policy that my father took in my name.

Maturity and death benefits of all LIC policies taken before April 2023 are exempt from income tax under Sec 10(10D). So there is no question of TDS, but you should disclose the income under the head Exempt income in the returns. After April 2023 there is a premium limit of 5 lakhs per year, beyond which maturity benefits become taxable. You would already have received communication from LIC regarding the break-up of the amount regarding sum assured and bonus while being instructed to submit your bank details and PAN. The premium paid and amount of bonus are all immaterial since maturity benefits are not taxable.

[SR-71]

I need some advice on how to account for principal loss in NCD investment while filing income tax returns. I had some money invested in SREI Equipment Finance NCD which ended up in insolvency proceedings. And after months of proceedings, settlement was completed by December 2023. I believe I got only around 4% of the entire amount due to me (Principal + Interest). I am trying to understand how to claim the losses so that I can set it off against current and future profits.

[mtripathi13]

Originally Posted by ZenMaster

Is there any existing post on how LIC returns are taxed?


I have received an amount in my account from an LIC policy that my father took in my name.

The taxation part is honestly very confusing.

Is there any link in LIC, where I can get all the particulars of an LIC policy (like no of years invested, premium values etc.) if I enter the Policy Number?

Dear Sir,

If certain conditions are satisfied the proceeds are exempt. The conditions are in relation to premium paid and sum insured. For example single premium policy proceeds are not exempt. An exact answer can only be provided on this forum, if information in respect of premium amount, sum assured, nature of policy etc. are shared.

Originally Posted by Mahesh Babu

Maturity and death benefits of all LIC policies taken before April 2023 are exempt from income tax under Sec 10(10D). So there is no question of TDS, but you should disclose the income under the head Exempt income in the returns. After April 2023 there is a premium limit of 5 lakhs per year, beyond which maturity benefits become taxable. You would already have received communication from LIC regarding the break-up of the amount regarding sum assured and bonus while being instructed to submit your bank details and PAN. The premium paid and amount of bonus are all immaterial since maturity benefits are not taxable.

Sir, Finance Act,2023 has brought in the restriction of 5 lacs. But even prior to that the receipt were exempt conditionally. So, I guess a blanket statement saying policies prior to April 2023 are exempt, is factually incorrect.

[dailydriver]

A colleague has, post all deductions, taxable income of ₹5,05,000/-.

He has never paid income tax and doesn't want to - at least this year.

The reasons are:

1. He likes his money to remain his!
2. He (a part time farmer) is afraid that his becoming a tax payer would rule him out of a series of government doles - PM Kisan Samman being one example.

But with ₹5,000 in excess of ₹5,00,000/-, he is left with no alternative other than to pay nearly ₹14,000/-.

Or so he thought!

I suggested him to make a 80G donation of ₹5,001/- to a charity of his choice that offers 100% exemption. This way, he is guaranteed of eating his cake and having it too.

I know this might not pass the litmus test of morality, but it sure isn't illegal.

Any thoughts?

[mtripathi13]

Originally Posted by dailydriver

A colleague has, post all deductions, taxable income of ₹5,05,000/-.

He has never paid income tax and doesn't want to - at least this year.

The reasons are:

1. He likes his money to remain his!
2. He (a part time farmer) is afraid that his becoming a tax payer would rule him out of a series of government doles - PM Kisan Samman being one example.

But with ₹5,000 in excess of ₹5,00,000/-, he is left with no alternative other than to pay nearly ₹14,000/-.

Or so he thought!

I suggested him to make a 80G donation of ₹5,001/- to a charity of his choice that offers 100% exemption. This way, he is guaranteed of eating his cake and having it too.

I know this might not pass the litmus test of morality, but it sure isn't illegal.

Any thoughts?

Sir, it is neither immoral nor illegal. It is a tax planning measure. Please go ahead if it serves his objects.

[Chetan_Rao]

Originally Posted by dailydriver

...

Any thoughts?

If doable legally, better donate 5k to someone needy than toss 14k into a bottomless pit. Seems the moral thing to do, TBH.

[PGA]

I draw pension from Central Govt. Last August my pension disbursing authority was changed. The new centralised agency stopped the tax deduction at source from my pension for reasons best known to them. My queries to the authority have gone unanswered. As per my understanding, it is as per law that they are duty bound to deduct the tax prior to giving me the pension but they have not done it, should I go ahead and deposit the due to IT dept or wait for them to deduct the amount.

[udzgodfather]

Originally Posted by dailydriver

A colleague has, post all deductions, taxable income of ₹5,05,000/-.

I suggested him to make a 80G donation of ₹5,001/- to a charity of his choice that offers 100% exemption. This way, he is guaranteed of eating his cake and having it too.

I know this might not pass the litmus test of morality, but it sure isn't illegal.

Any thoughts?

Would suggest to ask your friend to get in touch with a CA or the tax filing person, chances are he might not need to pay the 5K to the donation, there are better tax planning options. Please note donating money to a charity is a personal opinion and I respect it to the utmost, but piped my advice as it was being used as a tax saving tool.

Originally Posted by PGA

I draw pension from Central Govt. Last August my pension disbursing authority was changed. The new centralised agency stopped the tax deduction at source from my pension for reasons best known to them. My queries to the authority have gone unanswered. As per my understanding, it is as per law that they are duty bound to deduct the tax prior to giving me the pension but they have not done it, should I go ahead and deposit the due to IT dept or wait for them to deduct the amount.

TDS deducted sums to the part of tax you might need to deposit at the end of the year, if the organisation is not deducting the tax, I would suggest to deposit the tax at your end to save yourself from paying the interest penalty arising due to late deposit of advance tax.

[meerkat]

Originally Posted by udzgodfather

TDS deducted sums to the part of tax you might need to deposit at the end of the year, if the organisation is not deducting the tax, I would suggest to deposit the tax at your end to save yourself from paying the interest penalty arising due to late deposit of advance tax.

A pensioner is presumably a senior citizen, and if so, is not liable to pay advance tax.

[sumeethaldankar]

Is it necessary to file income tax for a deceased person whose income was well below 5 lacs? Said person was a 80+ individual. Tax was filed till last year and it was nil.

Thanks.

[sunilch]

Originally Posted by sumeethaldankar

Is it necessary to file income tax for a deceased person whose income was well below 5 lacs? Said person was a 80+ individual. Tax was filed till last year and it was nil.

Thanks.

Income tax site says yes and it has to be done by the legal hear of the deceased person.


https://www.incometax.gov.in/iec/fop...HeirUserManual

So basically, if the income was above 2.5L, returns should be filed.