Income tax returns (ITR): On sale of property, here is what you should know

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Published: November 21, 2017 3:58:32 AM

Once your return is processed and an intimation is issued under section 143(1), the refund shall get processed and paid into your bank account mentioned in your ITR.

I-T department can track your share trading on your depository account since it is linked to your PAN. (PTI)

• My mother will sell her house, which I want to buy. She will take only 50% of the market price of the flat from me. Will there be any tax liability for me? – Parul Vashisht

Income from sale of capital assets (house property in your case) is liable to tax as capital gains. Capital gains is computed by deducting cost of acquisition from the sale consideration. Sale consideration for the same shall be the stamp duty value of the property or actual sale consideration, whichever is higher. In your case, if your mother is taking only 50% of the market value as sale consideration, the capital gains has to be computed considering the Stamp Duty Value of the property as sale consideration. The capital gain tax liability, if any, shall be your mother’s and not yours.

• I do a lot of short term trading. Do I have to pay any tax on the gains and can the income tax department trace my stock tradings? —Gurdeep Singh

Income from short term trading of shares is liable to tax as business income. I-T department can track your share trading on your depository account since it is linked to your PAN.

• Do I have to pay any tax on the gains from selling household jewellery? —P M Sunder

Income from sale of any capital asset is liable to tax as capital gains. Jewellery qualifies as a capital asset and hence gains arising on its sale shall be liable to tax.

• I have filed my returns in May and a revised return in July. But I have not got my Rs 90,000 returns yet. How do I escalate the matter? —Ram Kumar Sehgal

The status of your income tax return processing is regularly updated on the income-tax e-filing portal. You can check the status of your return on the web-portal. Once your return is processed and an intimation is issued under section 143(1), the refund shall get processed and paid into your bank account mentioned in your ITR.

• I have got a demand notice for Rs 10. How do I pay the amount online or should I pay next year? In that case will be there interest levied? —Sachin Dutta

You can pay the demand online through your income tax e-filing account. In case of non-payment of demand, interest shall be levied, which in your case shall be nominal.

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

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