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Since 1st March, 1999
 
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Q&A
Tax on land sale
I have recently invested the sale proceeds of my ancestral land. Meanwhile, my employer has deducted tax at source from my February salary. How can I calculate and deposit the capital gains tax?
Anonymous
 
First you calculate whether the tax deducted by your employer is higher than your tax liability after providing for all deductions. Calculate your long-term capital gains tax liability arising out of the sale of the land. If the capital gains tax liability is still larger than the TDS, pay the excess tax in Form ITNS 280 through a bank.
 
 
Nil liability
I had been holding 3927.200 units (worth Rs 39,272) of UTI- Master Equity Plan Unit Scheme from the very beginning of the scheme. During financial year 2010-11, I sold those units at a prevailing NAV of Rs 50.20 per unit. After deduction of STT, I received a net amount of Rs 1,96,653.44. Will it attract any capital gains tax? If not, is it necessary to show the transaction in my tax return for assessment year 2011-12?
Ramen Mallik, Calcutta
 
There will be no capital gains tax liability on you since you held those units for more than 12 months. You should use ITR-2 to submit your income tax return. In this form, there is a column on “income from capital gains”. There you mention the transaction while put the word “nil” in the tax liability section corresponding to the column.
 
 
Arrears account
My annual income from pension and some other sources was less than the taxable limit till 2008-09 financial year. I didn’t file income tax return till that year. I got some pension arrears for financial years 2008-09, 2009-10 and 2010-11. Can I submit the revised return to pay the tax on the arrears income for those three years? If I invest Rs 50,000 in Senior Citizen Savings Scheme, can I claim tax relief on that?
G.C. Chakraborty, Dum Dum Park
 
You can pay tax and submit return of your income on its actual receipt basis. Since you have received the arrears pension in 2010-11 financial year, you can show this as your annual income for 2010-11 and pay tax thereon. You can also request relief under Section 89 for the arrears payment.
 
 
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.
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