Q1. Do I have to quote the PAN number of my landlord in my income tax returns as I am paying Rs 10,000 rent every month. Will I-T dept verify this? —Akash Singh
There is no requirement to quote PAN of landlord while filing ITR. Considering you are a salaried assessee, PAN of landlord must be furnished to the employer as aggregate rent paid for the year is above Rs 1 lakh. The employer is required to furnish the same in the salary certificate issued. The same is definitely verifiable by the tax authorities if they wish to scrutinse it further.
Q2. If I gift Rs 20 lakh to my mother for buying a house, will she have to pay any tax on it? —Shweta
As per I-T Act; any sum received by any person without consideration is taxable, if aggregate value exceeds Rs 50,000. However, this clause does not apply if such sum is received from any ‘relative’. The term ‘relative’ covers consideration received from lineally ascendant/ decedent. Hence, gift received by your mother from you would not be taxable in her hands.
Q3. My wife wants to sell a property which she inherited about 20 years before. Will she have to pay tax on it? —Pramod Kumar
Yes, capital gain would arise in your wife’s hands at the time of the sale of such inherited property (subject to availability of legitimate property documents in her name). For computing capital gain, as your wife had inherited the property 20 years back, year 2001 shall be considered as the base year. Further, cost of acquisition of the property in your wife’s hands shall be deemed to be the cost at which it was acquired by the previous owner (i.e., her father) or FMV as on April 1, 2001 whichever is higher, as increased by the cost of improvement of the property incurred (if any). Appropriate indexation shall need to be applied accordingly.
Q4. Since there is long-term capital gains (LTCG) tax on equity held over a year, I want to sell some shares now. If there is any loss, can I set if off with other gains? —S K Giri
In case of long-term capital loss derived on sale of listed equity shares held for over a year (on which security transaction tax is paid both at the time of acquisition and sale); the same would be eligible for set off only against any other similar LTCG during the year. In case net LTCG on sale of such equity exceeds Rs 1 lakh, then tax would be liable to be paid @10% plus applicable surcharge and cess.
The writer is partner, Nangia & Co LLP. Send your queries to email@example.com