Income Tax: For purchase of property of above Rs 50 lakh, 1% tax has to be deducted on payment

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New Delhi | Published: May 9, 2018 1:40:23 AM

Income tax returns already filed for financial year 2016-17 (i.e., assessment year 2017-18) can be revised till March 31, 2019.

tax, income tax, itr formIncome tax returns already filed for financial year 2016-17 (i.e., assessment year 2017-18) can be revised till March 31, 2019.

* I am planning to buy a property for `60 lakh. Do I have to deduct 1% TDS and pay the amount to the seller. How will I deposit the money to the tax department?

—Shankar Sambre

Yes, tax is required be deducted at the rate of 1% as the property purchased is exceeding the threshold limit of `50 lakh. The tax is required to be deducted at the time of credit of such sum or payment to the seller, whichever is earlier. The same is required to be deposited electronically through challan-cum-statement in Form No. 26QB within seven days from the end of the month in which the deduction is made.

* Due to an error, I paid less tax while filing returns last year. Can I pay the amount now and revise my return?

—Mahesh Udasi

Income tax returns already filed for financial year 2016-17 (i.e., assessment year 2017-18) can be revised till March 31, 2019. Accordingly, any stream/ source of income not reported in original income tax return already filed, can be included and filed in the revised return. It may be noted that income tax return for any earlier assessment year can not be revised. It may also be noted that any additional taxes required to be paid on such income (which was not reported earlier) plus applicable interest, has to be paid before filing of revised return.

* For visa application, I have to show my tax returns for three years. Is it safe to give these details to a foreign country’s embassy?

—Vinit Patel

Generally, embassies seek copy of income tax returns only to ensure that the applicant intending to travel to the foreign country has sufficient sources of income in the home country and economic ties to his home country so that the applicant is more likely to return to home country rather than stay back in the host country itself. In case the applicant does not have copy of such tax returns, embassies/ visa authorities can be requested to consider other documents (such as copy of Indian bank account statements, copy of parent’s income tax returns, etc.) to demonstrate such economic ties.

Further, embassies are required to keep ‘confidential’ all information provided by an applicant in terms of visa application, unless the law enforcement agencies specifically require such information for any other reason legally permissible.

The writer is partner, Nangia & Co LLP. Send your queries to fepersonalfinance@expressindia.com

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