Income Tax: Benefit of capital gains not available on commercial property

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New Delhi | Published: July 18, 2018 1:48 AM

Benefit of capital gains not available on commercial property

The due date of filing of Income Tax Return for FY 2015-16 has expired.

We have sold hospital commercial premises for Rs 75 lakh in January 2018 and purchased one shop of same price in March. The hospital was purchased in 1984 and we have taken depreciation till 2008. Can we get tax benefit as we have invested in other property or do we have to pay tax?
—Deepak Razdan

Since the property is a commercial property, benefit of Section 54 shall not be available. Capital Gain shall be computed by deducting from the sale consideration, expenses incurred wholly and exclusively in connection with sale and the cost of acquisition, after taking effect of depreciation claimed till 2008. The excess shall be taxed as Capital Gains.

Can ITR 1 be filed for FY16-17 as last date for belated return filing was March 31, 2018?
—Ramaghya Pandit

ITR for FY 2016-17 should have been filed by July 31, 2017 and belated return could have been filed up to March 31, 2018. Return of Income for FY 2016-17 cannot be filed now.

I did not file ITR for FY 2015-16. I am a salaried person and TDS had already been deducted and my income was approx Rs 4.85 lakh during the period. But I filed ITR for FY 2016-17. What can I do now?
—Suman Nath Mishra

The due date of filing of Income Tax Return for FY 2015-16 has expired.

As one has to declare house rent received for second house during the year, do I have to show full year rent despite the fact that the flat was vacant for six months?
—Ashok Kumar

As per the Income Tax Act, in case a property is vacant for a part of the year then only the rent received during the period for which the property was let out has to be taken for calculating income under head house property.

HDFC Life has deducted 1% TDS from maturity my Sampooran Shamridhi which was for five years. The total premium Rs 2,40,000 and I received Rs 2,22,000. My salary income is Rs 7,35,000. What is my total income tax?
—B Prasad

It is advisable to approach a tax consultant to compute the correct amount of taxes payable. Rough estimation of tax liability basis the limited information available above, would be misguiding.

The writer is partner, Nangia & Co LLP. Send your queries to

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