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  1. How to avoid tax liability after selling house? Here is what you need to do

How to avoid tax liability after selling house? Here is what you need to do

The postal department may not have mentioned correct PAN while filing TDS and hence it is not reflected in your 26AS. Hence, we would advise follow-up with them to get the TDS return corrected.

By: | Published: December 19, 2017 2:54 AM
tax liability, tax, selling house, Capital Gains Account Scheme, pan, UIDAI, UIDAI guidelines  You can invest long-term capital gains earned on the sale of this house in another house which you have to buy within next two years or construct a new house within the next three years from the date of sale.

• I sold my house for Rs 10 lakh and my salary income is Rs 4.5 lakh. Where should I invest that Rs 10 lakh to avoid tax liability?

– Ishan Uppal

You can invest long-term capital gains earned on the sale of this house in another house which you have to buy within next two years or construct a new house within the next three years from the date of sale. Till the time, amount is invested, you will need to deposit this amount in Capital Gains Account Scheme with a scheduled bank before the due date of filing your next income tax return. However, you cannot sell this new house within the next three years of its purchase or completion of construction, otherwise, the capital gain exempted earlier would be taxed along with the gain of this new house. Alternatively, you can invest it in specified bonds (like that of National Highways Authority of India and Rural Electrification Corporation of India) within six months from the date of sale. However, you cannot sell these bonds nor can take a loan against these bonds within the next three years, otherwise, the capital gain exempted earlier would be taxed in the year of sale of, or availing of loan against, these bonds.

• Post office has cut 10% tax on closure of NSS 87 account on May 2, 2017, but till date 26AS shows no tax credit. I have not got Form16A. Follow-up with postal department has not yielded any result. How do I get tax credit for this?

—Arun Bhatnagar

The postal department may not have mentioned correct PAN while filing TDS and hence it is not reflected in your 26AS. Hence, we would advise follow-up with them to get the TDS return corrected. Simultaneously, you can inform the jurisdictional assessing officer. You can still take the tax credit as Section 205 provides that if the tax has been deducted, you cannot be called upon to pay it again. It is advisable to keep a record of the correspondences to substantiate your claim.

• Has the finance ministry exempted super senior citizen not holding Aadhaar from mandatory linking the same with their bank account? My mother is 93 and is facing age-related problems.

—Aryan Pradhan

As per UIDAI guidelines, your mother can enroll herself at home. You need to fill an enrolment request form online and complete all required steps. On accepting the request, the enrolment agency will visit your place and will collect your mother’s details. There is as such no government directive regarding exemption of linkage of Aadhar with bank account for a super senior citizen.

The writer is partner, Ashok Maheshwary & Associates.
Send your queries to fepersonalfinance@expressindia.com

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