Your queries: Income Tax; Set off short-term capital gain against short-term capital loss

By Chirag Nangia

* As I have incurred loss in sale of shares, can I offset gains made from sale of a real estate in the same year?

—Gautam Kumar

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If the gain on sale of real estate is long term, then both long-term and short-term capital loss on sale of shares can be set-off. However, if the gain on sale of real estate is short term, only short-term capital loss on sale of shares can be set-off.

* I am a tax payer. Recently my wife (not a tax payer) sold some land bought in 1986. The land was in her own name. Can I invest in tax-free capital bonds to avoid LTCG tax? Can she be a joint owner?

—Vaidyanathan

You may invest in the specified bonds provided the investment is out of the sale proceeds of the land. However, your wife will be required to file an Income Tax Return for claiming the said deduction.

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* I want to sell my flat which I bought 10 years ago on a bank loan. For calculating capital gains can I add the interest amount paid to the bank as cost of acquisition?

—Shiv Sharma

The amount of interest which is not claimed as deduction under the head ‘Income from House Property’ can be added to the cost of acquisition of the flat when deriving the capital gain.

* I used to file income tax returns regularly till 2019. After that I could not file the returns due to some prolonged medical emergency in the family. Can I file the returns now for the missed years and what is the penalty amount?

—R S Manohar

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The e-filing portal of the income tax depart-ment allows you to file a condonation request for furnishing the ITR which is time barred (follow the steps provided in the user manual at the income tax website. You will have to provide reasons for delay in filing of the return of income along with supporting documents (if any). However, the acceptance of condonation of delay is at the sole discretion of the revenue authorities. Penalty for late furnishing of ITR will be Rs 5,000 if total income is more than Rs 5 lakh or Rs 1,000 if total income is less than Rs 5 lakh along with applicable interest.

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