| An individual has purchased a plot of land in 1977-78 for Rs 4,000. However, the same is not shown in his income tax file. The land was sold in July 2011 for Rs 8 lakh and the sale proceeds were invested to purchase a flat. Please advice how we would treat such transactions in the income tax return? |
H. Jalan, Calcutta |
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| The transaction should be disclosed in the year of sale. The indexation cost should be computed and the resultant capital gains be calculated by reducing the indexed cost from the sale proceeds. The registered purchase deed for the purchase of the plot will be the evidence for the cost of acquisition. You can also take the value of land as on April 1, 1981, index it and calculate the long-term capital gains. |
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| Missing assessment |
| I had earned a salary in the past years but had not filed any tax return for 2009-10 and 2010-2011. I am ready to pay penalty. Kindly suggest what can I do? |
Kanika Haldar, Bansdroni |
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| You should write a letter to the assessment officer informing that your income has escaped assessment. The assessment officer may consider invoking Section 147. You should check the requirements during those assessment years. From time to time, the CBDT exempts the filing of returns for salaried persons up to a limit. If you fall into that category, there shall be no penalty. |
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| Home loan deduction |
| In 2011-12, I had paid Rs 2,00,000 as interest for a loan taken to acquire property for my own use. I had also paid Rs 12.40 lakh interest during the construction period. Can I claim deduction on Rs 1,50,000 plus Rs 12.40 lakh as interest under Section 24 in assessment year 2012-13? |
Ambarish Chowdhuri, Calcutta |
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| For self-occupied house, the deduction u/s 24 on interest payment for a housing loan is limited to a maximum of Rs 1.5 lakh in a year. This includes post and 20 per cent of pre-possession interest. To claim interest in the pre-acquisition period, Section 24 provides for amortisation of the interest paid over 5 years subject to the overall ceiling. Interest to the extent stated in the query cannot be claimed. |
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| 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 700001. |
