For unlisted shares, if capital gain is long term, it is calculated by deducting indexed cost of acquisition from sales considerati-on.
l My relative has a partnership firm in Nepal and he is a resident of India. He pays taxes there. Since he is ordinary resident of India, his global income is taxable including Nepal income. What is the remedy for this under DTAA?
– Shubham Jain
Being resident in India he can avail credit for taxes paid in Nepal under Section 90. Further, as per this provision and the terms of DTAA, he can claim credit to the extent of taxes paid in Nepal or taxes payable in India on such income earned in Nepal, whichever is lower.
l I sold a flat and bought another of higher value in the same financial year. Do I have to report it in the ITR?
Yes, you need to show the capital gains in your ITR Schedule CG-Part B-Point No.1 and then claim deduction for investing the capital gains in the purchase of flat under Section 54 in Schedule CG-Part B-Point No.1(d).
l Is the tenure considered for LTCG on sale of shares listed in foreign exchange 12 months or 24 months? Will the sale of foreign shares be treated same as for Indian listed equity shares? If tax is different, can you share the calculation?
The tenure for listed equity shares for LTCG is above 12 months. Sale of foreign shares is treated as sale of unlisted shares. For unlisted shares, if capital gain is long term, it is calculated by deducting indexed cost of acquisition from sales considerati-on. Indexed cost is calculated by multiply-ing cost of acquisition from cost inflation index of year of sale and then dividing it by cost inflation index of year of purchase.
l Can one claim now a refund of `6,000 as employer had deducted TDS on `20,000 paid as bonus during FY15-16. There was no other income that year and ITR was not filed for that year even though ITRs for the previous and successive years had been filed.
Ordinarily, you cannot claim refund for FY15-16 as time limit for filing ITR is over. However, you can still pursue this by filing a condonation application for filing of return for refund claim with Principal Commissioner of Income Tax and if the authority is satisfied, it may grant the refund after due verification. However, no such application is entertained beyond six years from the end of the assessment year for which such application is made.
(The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to firstname.lastname@example.org)