I purchased a flat where the total sale value mentioned in agreement including GST is over Rs 50 lakh. When I remove GST component it is less than Rs 50 lakh. Will I have to deduct 1% TDS and will it be calculated on complete sale value mentioned in agreement or the carpet area and car parking only?
TDS shall be calculated on complete sale value and not just carpet area and car parking. Further, Central Board of Direct Taxes issued Circular No. 23/2017 dated July 19, 2017 wherein it clarified that GST shall be excluded from the purview of TDS.
I want to give some of my retirement amount to my children. Do I have to prepare a gift deed?
Yes, you can transfer the amount to your child as gift. It is advisable to execute a gift deed as this amount would be exempt from taxes in the hands of your children under Section 56 of Income Tax Act and it will serve as evidence for any enquiries in future. You can execute the same on a plain paper and get it registered from the court. The rules relating to stamping vary state-wise and need to be complied accordingly.
Does Section 87A apply on income of Rs 5.4 lakh if after deduction of `1.5 lakh under Section 80C and standard deduction of `40,000, taxable income comes to `3.5 lakh?
Rebate under Section 87A is available if the income assessable to income tax after claiming any deductions does not exceed `3.5 lakh. Since your total income does not exceed the prescribed limit, you are eligible for rebate under this section.
I claim tax benefit on home loan for my self-occupied flat. I bought another flat in in my wife’s name. Under whose ITR should the second flat be shown to claim tax benefit?
Since you have mentioned that you paid for the flat, any income from this house would be clubbed in your income only as per clubbing provisions in Income-tax Act and would not be considered your wife’s income. Further, even if the house is vacant, you will be required to consider the income from this house as per the prevalent market rates. However, you can claim the deduction for interest, as you are paying instalments for the same from your own income.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonal firstname.lastname@example.org