I have not yet filed I-T return for FY14. However, my entire tax liability was covered by the TDS amount. Can I file the return now? Do I need to pay any penalty for late filing?
— Purabh Nath
You can file the return of income for FY14 at any time before the expiry of one year from the end of the relevant assessment year, that is, up to March 31, 2016, or before the completion of the assessment, whichever is earlier.
However, the tax authority may levy a penalty of R5,000 for late filing.
I am working as technical director in a private company and, on successful completion of a particular project, my employer gave me a gift voucher of R50,000. Will the amount be taxed in my hands?
— Vikas Seth
The value of any gift, voucher, or token in lieu of which such a gift received by the employee or by member of his household on ceremonial occasions or otherwise from the employer is taxable as perquisite. Where the value of such gift, voucher or token, as the case may be, is below R5,000 in the aggregate during the previous year, it is not taxed as a perquisite. In your case, the value of gift voucher exceeds R5,000; therefore, the entire amount will be taxed as a perquisite in your hand.
My husband gifted me Rs 10 lakh in cash on my birthday. Out of this money, I purchased gold jewellery in 2011. Now, I wish to sell the jewellery. Will the capital gain be taxed in my hand or in the hands of my husband?
— Subash Parlishker
As per the provisions of Section 64(1)(iv) of the Income-Tax Act, all income arising from assets transferred directly or indirectly to the spouse without adequate consideration shall be liable to be clubbed in the income of transferror. Substitution of one form of property by another form will not make any difference. Further, the definition of ‘income’ in Section 2(24) includes capital gains. Thus, it is liable to be included in the income of your husband.
I derived long-term capital gain on sale of gold jewellery this year. I have some brought-forward losses under the head, income from house property. Can I set off brought-forward loss under the head, income from house property, against long-term capital gain on sale of jewellery?
— Prakash Rao
Under Section 71B of the Income-Tax Act, brought-forward loss from a house property can be set-off against income from house property, and losses that cannot be set off wholly shall be carried forward to next assessment. As such, you cannot set off brought-forward loss under the head income from house property against long-term capital gain on sale of jewellery. To save tax, you can invest the entire capital gain in specified bonds within six months from the date of transfer as per Section 54 EC.
I received a residential flat as a gift from my father in August 2007. The flat was purchased by my father in September 1998 for Rs 9.3 lakh. I wish to sell it now. From which year would I get the indexation benefit for computing capital gain?
— Ramesh Kumar
While computing the capital gains arising on transfer of a capital asset acquired by the taxpayer under a gift or will, indexed cost of acquisition should be computed with reference to year in which the previous owner first held the asset and not the year in which taxpayer became the owner of asset. In this respect, you may rely on the decision of Bombay High court in the case of CIT vs Manjula J Shah and the Delhi Tribunal in the case of Kamal Mishra vs ITO and can claim the indexation benefit considering the base year as financial year 1998-99.
* The writer is founder, RSM Astute Consulting Group
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