Under the income-tax provisions, tax credit is to be claimed in the year in which the income is offered for taxation.
*My 26 AS is showing 13 months rent instead of 12 due to wrong filing by ex-tenant and he is not willing to modify it, which will cost me income tax of Rs 10,000. What should I do?
Under the income-tax provisions, tax credit is to be claimed in the year in which the income is offered for taxation. Since, you would be showing the rent for 13th month in the next financial year and if your ex-tenant is not willing to revise the TDS return, while filing your income tax return, you have the option of carrying forward the excess TDS for one month to the next year under the column tax payments, where all the taxes paid are required to be disclosed.
*After retirement in February this year, I was paid gratuity of Rs 20 lakh in April. But the firm deducted income tax on `10 lakh. Can I get a refund?
Salary is taxed on the principle of ‘due’ or ‘received’ whichever is earlier. Since you retired on February, 2018, your gratuity became due in FY 2017-18 and hence, for gratuity exemption, old limit of Rs 10 lakh would apply to you and balance amount of Rs 10 lakh shall be taxed as salary income.
*I have a house at Hyderabad, which I want to sell at Rs 90 lakh. The new house comes for Rs 65 lakh. I also want to purchase an agricultural land worth Rs 20 lakh. Can I claim exemption under Section 54 on purchase of two properties? What is the way to save taxes on capital gains?
Capital gains would be calculated after deducting the cost of old house and if it is held for more than three years, the cost shall be further indexed and the resultant gain shall be long term. Hence, the entire amount of Rs 90 lakh would not be capital gains. Under Section 54, capital gain is exempt if such long term capital gain is invested in one residential house in India within a period of one year before or two years after the date on which such transfer took place.
Hence, you can claim exemption of capital gains up to Rs 65 lakh under this provision. If any further amount of capital gains is left, you can invest it in bonds issued by NHAI/ REC which are redeemable after five years under section 54EC. The investment is to be made within six months from the date of sale. Also, no exemption is available in case of purchase of agricultural land from the sale proceeds of house property.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonal email@example.com