By Chirag Nangia
* I sold a residential property in the previous year. I had bought it in 2015 and there is no capital gain. As I am a pensioner with income below Rs 2.5 lakh, do I need to file an ITR?
—Ramesh Iyer
While filing a return of income one must disclose income from all sources, irrespective of the amount, else at the time of processing of return, the tax department could raise a question or make adjustment on account of mismatch. You may declare your income from pension and capital gains in ITR 2. Disclose the sale consideration, cost of acquisition and the resultant capital gains on account of sale of property.
* I have a mutual fund folio held jointly with my wife. My 26AS shows the entire amount in my name. How do I correct it?
—J S Parmar
A mutual fund house, for the determination of threshold of Rs 10 lakh, in a case where the account is maintained or transaction is recorded in the name of more than one person, has to attribute entire transaction value or the aggregated value of all the transactions to all the persons. So, the entire transaction is shown as investment in your 26AS. Query is raised by I-T department only in case of mismatch. Therefore, you and your wife must make correct disclosure of income from mutual funds in your respective ITRs and maintain proper documentation.
* I am a medical practitioner and file ITR 4. I have made some gains from selling stocks. Which ITR should I use this year?
—(Name withheld)
Individuals with income up to Rs 50 lakh from business or profession and who have opted for presumptive taxation scheme can file ITR4. You, as a medical practitioner, may offer the income to tax under Section 44ADA; i.e., presumptive basis wherein taxable income is deemed to be 50% of gross receipts. If the scheme is adopted, no additional deductions in respect of any expenses will be allowed. Income from listed shares shall be capital gains. If held for above 12 months, such gains in excess of Rs 1 lakh would be taxable at 10%, if Securities Transaction Tax has been paid and it can be disclosed in ITR 4. Those with income under the heads salaries, business/ profession and other sources have to use ITR 3. However, if you offer the income to tax under Section 44ADA, you need to use ITR-4.
Also read: Did you know, by investing in bonds, you can have a regular monthly income? But know the risks too
The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com
