• We have a parental property which was willed to me and my brother. While the mutation is done, change of title in our names in the revenue records has not been done. Since mutation with municipal authorities for property tax purposes do not confer ownership, is there any income tax liability till the title is transferred in our name? There is no income from this property and will it be treated as second home as I already have a house in my name?

– Vinod Pillai

Generally, mutations are done after the registration process upon transfer of property but in case of transfer of property under will, one can get the mutation done before registration. As per the provisions of Income-tax Act, if any immovable property is received under a will or by way of inheritance then, it is not considered as an income of the recipient of such property.
However, for the purpose of calculation of income from house property, if a person owns more than one residential property, one of these can be considered to be self-occupied and the other should be considered let out even if it is not actually let out, and accordingly the rental income of such house will be determined as per the I-T Act on which tax will be levied. It will not matter if your name is not taken as owner in revenue records, as for this purpose you will be considered a beneficial owner of the property.

• I am a salaried person and also trade
in shares (only via delivery). Last three years I had suffered losses and this
year I made a profit. Can I set off my losses with this year’s profit in the
I-T returns?
—Ravi Singh

Assuming that you incurred these losses in FY 2013-14, FY 2014-15 and FY 2015-16 respectively, you can only set-off the loss of FY 2015-16 as you still have the window of getting the return of income for this year revised by March 31, 2018. However, loss shall be allowed only if the original return was filed within the due date for filing for that year. However, for earlier years, the time limit for revising the returns has lapsed, hence you can’t claim that
loss now.

The author is partner, Ashok Maheshwary & Associates LLP.
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