I have a tax demand of Rs 75,000. I am planning to relocate to Muscat in December for at least 10 years. Do I have to clear the amount as I have heard that after six years the government waives off the tax demand?
– Aman Chaudhury
An individual domiciled in India traveling outside India, is required to file an intimation with the tax authorities furnishing his PAN, purpose of visit and estimated period of stay. Further as far as your tax arrears (Rs 75,000) are concerned, please note that once a demand notice is issued by the tax authorities, the demand stands crystalised and the same is recoverable from you along with interest. For tax recovery, the tax authorities can attach your bank accounts, etc.
Is there any tax to be paid on the gold ornaments that my wife inherited at the time of her wedding?
Gifts received at the time of wedding (from relatives or otherwise) are not liable to tax. Currently, there is no estate tax levied in India. India had the estate tax regime from 1953 to 1985. However, it was removed in 1985 with the realisation that Estate Tax had failed to bring equilibrium in the society.Hence, there is no estate duty or inheritance tax payable in India at the time of inheritance of gold ornaments. However, where the income is more than `50 lakh, a disclosure of assets (including gold ornaments, at cost) has to be made in the income tax return.
I booked a flat in 2012 by taking a home loan. In 2014. I shifted the home loan to another bank. Next year, I shifted to another city. I got possession of my house in 2016. Since then I have rented out the property. Am I eligible for income tax benefits for loss of income from house property due to interest amount accrued this year and the previous years?
—N P Venkatram
Interest on home loan is allowed as a deduction while computing income chargeable to tax under the head ‘house property’, once the possession of the house has been obtained. For the interest paid prior to the possession, the same is deductible in five equal instalment in five succeeding years, after possession has been obtained. However, there is a cap of Rs 2 lakh on maximum amount of interest that can be claimed as deduction while computing income from house property.