NRIs can use ITR-2 if they have gain/loss on shares/MFs

By: |
July 23, 2019 1:35 AM

It is mandatory for employers to disclose the income of employees in their TDS returns.

The resultant amount shall be the LTCG which is taxable at rate of 20%.

NRIs can use ITR-2 if they have gain/ loss on shares/MFs
-Can ITR-2 be used for filing returns by NRIs if they have gain/ loss from shares/ mutual funds traded on NSE/BSE?
– Mukesh Agarwal

Yes, Form ITR-2 is to be used by NRIs if they also have gains or losses from shares/ mutual funds. It must be noted that Form ITR-2 cannot be used by NRIs if they have any income from business or profession.

-I do not understand why all my salary details are furnished to I-T department (as in 26AS) when my salary does not attract any tax. What should I do?
—B Venkateswaran

It is mandatory for employers to disclose the income of employees in their TDS returns. However, when income of employee does not exceed the minimum income chargeable to tax, then the employer must not deduct any amount of TDS. But while filing the annual TDS returns, the employer is required to disclose the salary income of the employees even if no tax is deducted from them.

– I sold a residential house and bought a piece of land in a residential area. Can I claim benefit under Section 54?
—Mahendra Jain

You can claim deduction under Section 54 when you sell a residential property and buy another residential property either one year before the date of sale of residential house or within two years after sale of residential property or within three years construct a residential property.

-How is long-term capital gains (LTCG) on gold ETF sale calculated for AY 19-20. How do I calculate fair value of shares bought in 1980 as records of original cost of acquisition are not available?
—Rakesh Amba

The LTCG on sale of Gold ETFs is to be calculated by deducting indexed cost of acquisition from the sales consideration. Indexed cost is calculated by multiplying actual cost of purchase with cost inflation index of the year of sale and then dividing it by cost inflation index of the year of purchase. The resultant amount shall be the LTCG which is taxable at rate of 20%.

For shares acquired before April 1, 2001, cost of acquisition is fair market value of those shares as on April 1, 2001. For equity oriented mutual funds / shares cost of acquisition will be as follows:

The cost of acquisition for investment made before Feb 1, 2018, will be the higher of: a) the actual cost of acquisition, and; (b) The lower of : (i) Fair market value (NAV) on January 31, 2018 and (ii) sale value received/ accrued when unit is sold.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to
fepersonalfinance@expressindia.com

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