Your queries: Income Tax – Hold gold exchange traded funds for 3 years for indexation benefits | The Financial Express

Your queries: Income Tax – Hold gold exchange traded funds for 3 years for indexation benefits

In case sold after three years, it will qualify as long-term capital gains and will be subject to 20% tax with indexa-tion benefits.

Your queries: Income Tax – Hold gold exchange traded funds for 3 years for indexation benefits
The fund house may not deduct tax at source.

By Chirag Nangia

How is tax calculated on sale of gold exchange traded funds (GETFs) and will the fund house deduct the capital gains?
—Rajesh Ahuja

Where GETFs are sold before the three-year holding period, it shall qualify as a short-term capital gain and taxed as per the applicable slab rate. In case sold after three years, it will qualify as long-term capital gains and will be subject to 20% tax with indexa-tion benefits. The fund house may not deduct tax at source.

I have paid certain charges for converting physical shares to demat. Is there a provision to deduct these charges from profit (while selling them) while documenting the trades in ITR 2. If yes, where can these be shown in ITR 2 in terms of both STCG and LTCG?
—Krithika Nagarajan

As per Section 48 of the Act, expenditure incurred in connection with transfer of shares is allowed as deduction. You may deduct the conversion charges from the sale consideration under the head “Expenditure wholly and exclusively in connection with the transfer” in schedule CG (as may apply for short/ long term).

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Our flat is in my mother’s name. Can I show an HRA of Rs 1,00,000 and get tax exemption. Will the amount reflect in her AIS if the amount is paid through bank transfer?
—Sharat Kumar

A taxpayer can get tax exemption if he/ she is a salaried individual, receives HRA as a component of salary and pays rent. The amount of tax exemption shall be computed as per applicable provisions. The amount will reflect in her AIS if you have provided her PAN to your employer.

I had long term capital loss in Lakshmi Vilas Bank and DHFL. Can I adjust the same against LTCG in FY 22-23 even though I have LTCG in FY 21-22 in which I have not adjusted the same?
—Narendra Shahane

If you have missed claiming the set-off during AY 22-23, you may consider revising the ITR and claim such a set-off by December 31, 2022. The provisions of the Act do not provide an option to skip setting off losses. If you now set-off the same in AY 23-24, it may be questioned by the tax authorities.

In case of transfer of equity shares from father to son what will be the liability of son towards income tax in respect of dividends earned and capital gain on selling these shares and from which date/financial year?
—Rajinder Pal Singh

As per Section 56(x) of the Act, at the time of transfer of shares from father to son, there is no tax liability in the hands of the son. The dividend earned after such transfer shall be taxable in the hands of the son. At the time of sale of such shares by the son, the capital gain shall be taxable in his hands. The cost at which the father purchased the shares will be considered as cost of acquisition and the period of holding shall begin from the date when the father first held such shares. In case the son is a minor, the dividend income and capital gain will be clubbed with the income of parents/ guardians as per the provisions of Section 64.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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First published on: 21-11-2022 at 01:00 IST