Resident senior citizen not liable to pay advance tax if he doesnt have any biz income

Written by Suresh Surana | Updated: Sep 24 2013, 15:37pm hrs
I own a house from which I earn rental income. I paid R8,000 in February 2013 towards the total property tax payable of R15,000, and the remaining R7,000 was paid in July 2013. Can I claim deduction for the entire property tax, i.e., R15,000 while computing the income from house property for FY13.

Kunal Parikh

Deduction in respect of property tax is permissible subject to the condition that it has actually been paid during the financial year. Property tax due but not paid during FY13 is not allowed as deduction. Thus, you will be eligible for deduction of R8,000 only. However, property tax paid in July 2013 (R7,000) can be claimed as deduction for computing income from house property for FY14 even if it relates to the previous year.

My query is regarding computation of long-term capital gain on sale of a residential house. I do not wish to claim indexation benefit and, instead, want to pay tax at 10%. Can I do so

Nilesh Agarwal

The benefit of a lower rate of tax at 10% (without indexation) under Section 112 is restricted only to listed securities, units or zero-coupon bonds. Thus, you will be required to compute long-term capital gain after taking indexation benefit and pay tax at 20% on the resultant capital gains.

I e-filed my I-T returns for FY12 on July 31, 2012, without using digital signature. I could not send a copy to CPC, Bangalore, on time. Can I do it now

Prabhakar Shah

Yes, you can send ITR-V (duly verified and signed) to CPC, Bangalore, till October 31, 2013, as the time limit for filing ITR-V has been extended by the I-T department. Note that without acknowledgment of ITR-V from CPC, it would not be possible for the I-T department to process your return or issue any refunds as these would be treated as not having been filed with it.

A New Jersey-based friend gifted me a laptop worth $2000 (R1,25,000) on my birthday. Will this be taxable in my hands

Ridham Khandelwal

Under Section 56(2)(vii), any sum of money or any property in kind received without consideration(in excess of the prescribed limit of R50,000) by an individual is chargeable to income tax under the head, income from other sources. For this purpose, the definition of property includes immovable property being land or building, shares and securities, jewellery, archeological collection, drawings, paintings, sculpture or any work of art. However, computer or laptop is not covered under the above definition. As such, Section 56(2) (vii) will not be applicable in your case and, thus, you will not be required to pay any tax in this regard.

I am a senior citizen and have had some long-term capital gain. I have not paid advance tax till now. Do I have to pay interest for non-payment of advance tax

Utkarsh Desai

As per Section 207 of the Income Tax Act, a resident senior citizen (aged 60 years or more) is not liable to pay advance tax if he doesnt have any business income. Thus, if you dont have any business income, you will not be required to pay advance tax for the FY14. As there is no liability on you to pay advance tax, interest under Section 234B (default in payment of advance tax) or under Section 234C (deferment of payment of advance tax) will not be levied in your case.

The writer is founder of RSM Astute Consulting Group n Send your queries at fepersonal