| My father-in-law recently sold his house for Rs 15 lakh. How much capital gains tax would he have to pay if no property is purchased from the proceeds within three years? |
Rupendra Mitra, by e-mail |
|
| g-term capital gains tax at a flat rate of 20 per cent is paid on the gain amount and not on the sale proceeds. To arrive at the gain amount, you have to deduct the inflation-adjusted cost of acquisition of the property from the sale proceeds. |
| |
|
| |
|
| |
| Pop’s gift |
| I wish to sell my house and divide the proceeds equally among my two daughter-in-laws. Each of them will receive Rs 50,000 in cash and a draft of Rs 2 lakh. Shall the amount be subjected to any tax, gift or income? |
Patit Paban Dutta, Calcutta |
|
| You will have to pay long-term capital gains tax on the profit you make from the transaction but do not have to pay any gift tax. Also, the amount will be tax-free in the hands of your daughters-in-law. |
|
| |
|
| |
| Holding on |
| I am being transferred to Singapore and would have to take up residence there. I have some investments in the Indian stock market and I wish to hold on to these shares. Can I do so without violating the law of the land? |
Aditya Shome, by e-mail |
|
| You can continue to hold these shares as the RBI has granted permission to companies to enter overseas addresses of shareholders in their books. However, you will have to provide an undertaking that you will not seek repatriation of any income or sale proceeds of the securities. |
|
| |
|
| |
| Counting cash |
| I receive some portion of my total income by way of cash. If I approach any bank for a loan, will the cash component be considered for calculating my loan eligibility? |
Shila Das, Ranchi |
|
| erally, banks and finance companies do not consider any income by way of cash unless supporting documents are produced. However, if the proof for cash income is produced by way of vouchers or a statement from the employer along with relevant entries in bank statements, they might consider part or full of such income. |
| |
|
| |
| |
| If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |
