to be noted that under Section 50C of the Income Tax Act, if the sale consideration is less than the stamp duty value of the flat, the stamp duty value will be considered as the full value of consideration for the purpose of calculating capital gain.
Reinvestment benefit under Section 54 can also be availed. The Finance Bill 2013 has imposed an obligation on the buyer of an immovable property to deduct tax at the rate of 1% where the total amount of consideration is R50 lakh or more.
I earned some interest income from a post office savings bank account. Can I claim exemption under Section 10(15) as well as deduction under Section 80TTA against such an interest income?
— Harish Malik
Under Section 10(15)(i), any income by the way of interest on a post office savings bank account is exempt from tax to an extent of R3,500 in the case of an individual account and R7,000 in the case of a joint account. Thus, interest income beyond R3,500 or R7,000, whichever applicable, will be taxable and form a part of the gross total income.
Further, while computing
the total income, a deduction up to R10,000 will be available under Section 80TTA of the IT Act. Since both provisions are separate, you can claim the benefit of both the Sections.
n The writer is founder of RSM Astute Consulting Group
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