| I had bought a plot of land for Rs 5 lakh in 1996 and sold it for Rs 25 lakh early last year. What will be my capital gains tax liability? |
Sudhir Chatterjee, Calcutta |
|
| |
| Assuming that you had sold the property before March 2010 and acquired the property in 1996-97 financial year, the cost inflation index ratio for the acquisition value of the property will be 711 divided by 305, or 2.3312. Thus, your cost of acquiring the property for the purpose of tax calculation will be Rs 5 lakh multiplied by 2.3312, or Rs 11,65,600. The capital gain, thus, works out to Rs 13,34,400. Your capital gains tax liability will be 20 per cent of Rs 13,34,400, or Rs 2,66,880. |
|
| |
|
| |
| Gift for son |
| I am a senior citizen and my son is an NRI. I want to gift him some money. Do I have to pay any tax for this gift? |
Sukalyan Mukherjee, Uttarpara |
|
| |
| Gifting money as a father to your son won’t attract any tax. But since your son is an NRI, gifting money to an NRI by a resident Indian may attract the provisions under Fema. However, the Reserve Bank Of India introduced a Liberalised Remittance Scheme under which an Indian resident can now gift or donate up to $2,00,000 in one financial year without the prior approval of the RBI and without attracting the FEMA provisions. |
|
| |
|
| |
| A cumbersome job |
| I give private tuition to schoolboys at my residence. I have PAN also. Which IT Form should I use to file the IT return for the financial year? |
Rupa Roy, Calcutta |
|
| |
| The vocation of private tuition to students falls under the term “profession” assessable for income tax purposes. If you want to file the return for income related to “business or profession”, you should use form ITR4. However, Form ITR4 is quite lengthy and complex. That makes the work of filling the form quite cumbersome for ordinary taxpayers. |
|
| |
|
| |
| |
| 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. |
