Income tax: You can buy second flat to get LTCG exemption on sale of old house

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September 11, 2018 2:01 AM

Form 31 is for withdrawal of PF upto a certain limit from contributions made in present job.

LTCG exemption, sale of old house, Income tax, IT firm, EPF,  EPFO, UAN number, PF balance online, TDS refundCheck with your previous employer for updation of leaving date.

* I own a 30-year-old house at my native place and a flat at Chennai. I have a home loan on this flat. Can I sell my old house and buy another flat at Chennai and claim long term capital gains tax exemption for this deal?
—P Ganapathy

Yes, when you sell your old house and buy another flat in Chennai you can claim long term capital gain exemption under Section 54. However, exemption can be claimed only if the new flat is purchased within a period of one year before or two years after the date of sale of old house.

* I retired on January 31, 2018 from a state-owned insurance company and was paid Rs 12,80,000 as gratuity. TDS was deducted on RS 2,80,000. Since the Act has been amended on March 29, 2018 and limit of tax free gratuity has been raised to Rs 20 lakh can I claim TDS refund?
—Mukesh Gupta

No, you cannot claim exemption for gratuity amount of Rs 2,80,000. Extended exemption limit of gratuity of Rs 20,00,000 is applicable for employees retired on or after March 29, 2018. Hence, for employees who retired before March 29, 2018, the exemption limit of Rs 10,00,000 will only be applicable.

* I started working in an IT firm in August 2007 and then switched to another in August 2011. I resigned from the second firm in September 2016 and am not working since then. I am unable to withdraw my money from EPF due to some technical issues. What should I do?

You can withdraw PF balance online by logging into EPFO site: with your UAN number and password. Then go to online services and click Claim (form 31, 19 &10C) under this option. After this you will receive an OTP on mobile number linked to your Aadhaar number. You will then have options Form 31, 19 & 10C. Form 31 is for withdrawal of PF upto a certain limit from contributions made in present job. 19 and 10C are for final settlement which appears when your date of leaving is updated in the database of EPFO department. Check with your previous employer for updation of leaving date. Ensure that your Aadhar and bank account details have been entered. Alternatively, EPFO has launched a composite form which can be submitted directly to concerned EPFO office along with cancelled cheque. After necessary verification, it will issue the refund in your bank account.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonal

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