F.A.Q on Indian Income Tax Laws

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Can You Get Exemption U/s 54F Even If Builder Does Not Complete House Withi
2008-05-20 19:41:00
We have sold a old land long term asset and invested for the purchase and construction of a flat in a apartment in Bangalore, with the one year of sold of asset and claimed deduction u/s 54 f of income tax act, but later the builder is not completed the possession of the apartment within 3 years and still the apartment is under construction. as per the income tax law the period of 3 years is lapsed. the period of 3 years is lapsed without any mistake from our side. what is your suggestion on this matter. Kumar, Banglore .The exemption u/s 54F is for those assessee who gets long term gains on any asset other than house property and who uses all the sales consideration within a specified period for purchase or constructing a residential house. The specified period in case of house purchase is one year before or two years after the date of transfer of asset on which gains were made. However, for construction, section 54 provides , time limit of three years. Therefore , your question is...
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Will The Payment Made For Sharing Space Be Liable To TDS?
2008-05-18 18:54:00
A, B, & C are three companies. A has given entire Building on a rental basis to B. B is paying entire rent amount to A. This Building is shared by B & C collectively, for which B is raising Debit note on C, on a monthly basis. Now my question is whether C is liable to deduct tax on Debit note raised by B for rental income (TDS U/s 194 I) and whether B is required to charge Service Tax on the debit note raised on C. Dinesh Sharma, Navi MumbaiThe rent payment exceeding Rs 1,20,000 in a year suffers tax at source u/s 194I. The rent definition was enlarged with effect from 13th July 2006 as underExplanation.For the purposes of this section,(i) rent means any payment, by whatever name called, under any lease, sub-lease,tenancy or any other agreement or arrangement for the use of (either separatelyor together) any,(a) land; or(b) building (including factory building); or(c) land appurtenant to a building (including factory building); or(d) machinery; or(e) plant; or(f) equipment; ...
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Is Disability Due To Knee Replacement Eligible For Deduction?
2008-05-17 14:08:00
My father has undergone a Knee replacement operation due to which he has partial mobility in his left leg.A Physiotherapist has been employed to increase his mobility. I have a certificate from the doctor who operated upon him. Will this qualify as a disability under Section 80DD? Priya ,PuneSection 80DD does not provide for deduction of expense on all disease. But the specified disease which makes people disable. Disabilities defined in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), are covered for deduction u/s 80DDB . One of the disability defined under the said Act is "Locomotor Disability " which is explained as under :(o) ?locomotor disability? means disability of the bones,joints or muscles leading to substantial restriction of the movement of the limbs or any form of cerebral palsy; As your father has disability of joints which restricts his movement , I feel you are eligible f...

Can You Claim Interest Deduction Without Completion Of House?
2008-05-14 06:05:00
I have purchased a house. At the time of purchase I had taken a loan of Rsx. I paid the full amount to the builder. The possesion of the property has not been given yet. My question is can I claim income tax benifits on the same.I mean interest on the home lean and principal payment.While deduction of interest u/s 24 is allowable only after completion of your house, no restriction is there for claiming deduction of principal payment u/s 80C. Suman, New DelhiThe aggregate of interest paid till the year of completion can be claimed in five equal instalments from the ffinancial year in which construction was completed. This is as per the Explanation given under section 24 of the I T Act . Explanation : Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any o...
More About: House , Interest

How To Get Registartion U/s 80G ?
2008-05-13 06:15:00
We have recently (April 08) formed NGO (Voluntary Consumer Organisation) and got registered with Sub Registrar VI A Delhi.Now we want to get it registered with Income Tax for 80 G exemption. What are the formalities and what is time period taken for giving permission? S. P Manchanda, New DelhiThe procedure of getting approval under section 80G of the I T Act by the society is given in Rule 11AA of I. T. Rule . which is summarized below1. The application for approval should be in Form No.10G and shall be made in triplicate. The form can be downloaded from here.2. The application should be accompanied by the following documents, namely:-(i) Copy of registration granted under section 12A orcopy of notification issued under section 10(23) or 10(23C);(ii) Notes on activities of institution or fund since its inception or during the last three years, whichever is less;(iii) Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less.Y...
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What Are The Types Of Pension Exempt From Tax?
2008-05-09 14:35:00
Whether pension received by gallantry award holder is taxable as per Income Tax Act. Somya Krishnan ,KochiYes, pension received by gallantry award holder is tax free , but the types of award is also notified. Section 10(18) of the I T Act provides exemption for such gallantry award winner and even to the family pension received by member of the family of gallantry winner. Read the provision below :18) any income by way of? (i) pension receivedby an individual who has been in the service of the Central Government or State Government and has been awarded ?Param Vir Chakra? or ?Maha Vir Chakra? or ?Vir Chakra? or such other gallantry award as the Central Government may, by notification in the Official Gazette, specify in this behalf;(ii) family pension received by any member of the family of an individual referred to in sub-clause (i).The notified Gallantry awards can be found here.The meaning of family is given in Explanation under clause 5 of section 10 which is as under For the purp...
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How To File Return If Employer Does Not Issue TDS Certificate?
2008-05-08 17:03:00
I had resigned from my company in Feb-2008 on a short notice.They did not receive my resignation and so I put it through e-mail for record.Now they are not issuing me Form-16 for filling returns from April 2007 to Feb 2008.Please help me out how to file returns in such case without form-16.How should I also include tax paid by another company for month of march 2008.I have just a salary slip for same. Sunil, DelhiYou will b happy to know that for filing return you do not need Form 16 as the return has been made annexure less. Read this story .Therefore, as far as filing of return is concerned, just fill up form ITR1 or ITR 2 and claim whatever tax is deducted form you . Can you claim TDS credit without Form 16?yes, because the TDS made by your employer will reflect automatically in assessing officer, s computer . Even you can check up the TDS made by your employer. Read How to Confirm If Your TDS was deposited by Deductor?What to do with erring employer?Send them a letter stati...
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Do Renovation Payments To Builder Require Service Tax Payment?
2008-05-08 05:52:00
I want to ask a question that if I am getting services of a builder for my residential house renovation , then am I liable to pay service tax on that or not. Asha , NoidaFirst of all, it should be noted that though service recipient has to pay the "service tax ", the responsibility to deposit, generally,is with the service provider. So , it is for your builder to charge service tax on the bill raised for the work.In case his gross receipt is below Rs 10 lakhs in a year, he may not charge you "service tax " despite the fact that he was providing taxable service. The Finance Act 1994 provides u/s 105(zzg) provides that any service provided by any person to a customer in relation to management, maintenance or repair is a taxable service. Further , mananagement ,maintenance or repair have been defined under section 65(64) as under :(64) ?management, maintenance or repair? means any service provided by?(i) any person under a contract or an agreement; or(ii) a manufacturer or any person...
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How To Minimise Tax On Huge Gains on Property Sale?
2008-05-07 17:49:00
I became a member of the housing society and constructed a house ib 1974. The construction cost was2 lacs. Now I desire to sell the house and am definately to mmake considerable capital gain by selling it. How much capital gain will I have to pay? Alternatively, what are the exemptions available? What is indexed cost of acquisition and what will it be in my case? thanks in anticipation.Rajesh JaniFollow these steps for minminising the tax on capital gains on sale of house to almost NILStep1 : Get your property valued on 1/4/1981 Since you have bought the house in 1974 , you have the option to substitute the market price as on 1/4/1981 as cost of the property . This is provided ins section 55(2)(b)(i) of the I T Act as given below(i) where the capital asset became the property of the assessee before the 1st day of April, 1981, means the cost of acquisition of the asset to the assessee or the fair market value of the asset on the 1st day of April, 1981, at the option of the asses...
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Can Buying Insurance On Disabled Person's Name Give You Deduction ?
2008-05-06 17:39:00
My wife is physically challenged. I am currently in the process of purchasing a life insurance policy for her, the annual premium for the same will come to Rs. 40000. Will this amount be eligible for deduction under Section 80DD, if the policy is in her name and I am paying the premiums. Or I need to purchase a policy for her and then make her a nominee. Ravi, Mumbai Section 80DD is relief provision under I T Act for those assessee who are incurring expenditure on dependent person suffering from some disease. The details regarding disease can be read here .The provision provides normal deduction of Rs 50,000 and in case of severe sufferance , up to Rs 75,000. The condition to be satisfied for claiming the deduction are given in sub section 2 of section 80DD which is reproduced below:(2) The deduction under clause (b) of sub-section (1) shall be allowed only if the following conditions are fulfilled, namely: (a) the scheme referred to in clause (b) of sub-section (1) provides...
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Download New Income Tax Return & Tax Payment Forms !
2008-05-05 17:17:00
Income Tax and FBT Return s For Asst Yr 2008-09ITR1- For Individuals having Income from Salary/ Pension/ family pension & InterestITR2- For Individuals and HUFs not having Income from Business or ProfessionITR 3- For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship .ITR-4 For individuals & HUFs having income from a proprietary business or profession .ITR-5 For firms, AOPs and BOIsITR-6For Companies other than companies claiming exemption under section 11ITR-7 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)ITR-8 Return for Fringe Benefits .ITR-V- Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature .Acknowledgement-Acknowledgement for e-Return and non e-ReturnForms /Challans for tax payment280 pay self assessment ...
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Fastest Tax Computation For FY 2006-07 , FY 2007-08 & FY 2008-09!
2008-05-04 16:42:00
Presenting fastest Computation of tax liability in Fy 2006-07, FY 2007-08 & FY 2008 -09 for Individuals.The input is to be given in Total income field after reducing deduction u/s 80C and other deductions.Capital Gains have been excluded from the computation keeping simplicity in mind and that computation of capital gains is easier . I will be publishing different types of computation of tax including Form 2D which will automatically compute tax in excel format.Please give feedback and any error you find.Tags: Tax Calculators

Are There Some Special Reliefs For NRI or PIO?
2008-04-26 17:00:00
Yes, Income Tax Act , under the Chapter XIIA provides some special provisions which grants reliefs to Non Resident Indians or Person of Indian Origin. The provisions are contained in section 115C to 115 I .The special relief is regarding special tax rates for two types of income-investment income and income from long term capital gains- of a Non Resident Indian.Investment income Investment income is defined in section 115C to mean that any income generated from following specified assets :(i) shares in an Indian company;(ii) debentures issued by an Indian company which is not a private company (iii) deposits with an Indian company which is not a private company (iv) any security of the Central Government as defined in clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944);(v) such other assets as the Central Government may specify in this Long term capital gains. Long term gains are long term gains on any assets as stated in aforesaid "specified asset{i to v} . So do not ...
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Why Sur Charge Can Not Be Imposed Despite Having Income Exceeding Rs 10 Lac
2008-04-25 16:32:00
i) My taxable income from salary = 780000ii) Short term capital gain (from shares) = 115000iii)Long term capital gain (from shares) = 120000 My total income by adding above( i ,ii,iii ) crosses RS 10 lakhs . Am I liable for 10% surcharge.I have no investment for deduction u/s 80C.William Alex Dias, MumbaiThe surcharge is imposed if the total income of an individual exceeds Rs 10 lakhs. It is seen from your question that you have long term capital gains of Rs 1,20,000. If these shares are listed shares , sold through stock exchange and securities transaction tax was paid on it, the long term gains on such shares are exempt by virtue of section 10(38) of the I T Act.Significance of exemption u/s 10(38)The section 10 of the I T Act provides exemption provisions. The opening line is significant. It starts as under10. Income s not included in total income.In computing the total income of a previous year of any person , any income falling within any of the following clauses shall not be ...
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Do Foreigners Require Tax Clearance Before Leaving India?
2008-04-22 05:38:00
The answer is Yes and No but before I explain the law , it is importanat to understand that here foreigner means a person not domiciled in India .The answer is NO in case of following persons?Those persons who are not domiciled in India and who come to India on tourist visa or for any purpose other than business,employment or who have no source of income in India , They are not required to obtain a tax clearance certificate from income tax department before leaving India.The answer is YES in case of following persons?The answer is Yes in case the person not domiciled in India visits India for any business purpose or employment or has any source of income in India . Subsection 1 of Section 230 of the I T Act is very clear on this which is given as under :no person,(a) who is not domiciled in India;(b) who has come to India in connection with business, profession or employment; and(c) who has income derived from any source in India, shall leave the territory of India by land, sea or a...
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Can An Indian Resident Gift Shares To A Non Resident?
2008-04-21 08:10:00
Yes, an Indian resident can give gift of shares of a company to a non resident but only if he fulfills certain conditions laid down in . The Regulation 10 of the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 delas with requirement in case of transfer of security . Sub clause A(a) of Regulation deals with transfer of share by gift . This sub-clause was amended vide notification FEMA. 137/2005- RB Dated 22 July, 2005 . The conditions are 1. Application for approval to gift shares has to be made to RBI.2. The Reserve Bank may grant such approval on being satisfied of the following conditions:a. The donee is eligible to hold such a security under Schedules 1, Schedule 4 and Schedule 5 of these Regulations.b. The gift does not exceed 5% of the paid up capital of the Indian company/each series of debentures/each mutual fund scheme.c. The applicable sectoral cap/foreign direct investment limit in the Indian company is not ...
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Do You Require Approval Of RBI For Selling Shares To Non Resident?
2008-04-21 07:23:00
One of our client is an NRI . His father holds shares in an Indian Private Company which is trading in / Manufacture of Electronic items. Now my client wants to buy 90% of shares from his father and he wants to remit through banking channels the required money. Now I need a clarification on the following:a. Whether Prior Permission of Reserve Bank of India is required ?b. Whether sale proceeds of these shares in future are freely repatriable?c. Whether there is any ceiling on % of shares to be acquired by NRI in Indian Company either by himself directly or as a group of NRI's A.RADHA SRI KRISHNA RAOIs Permission of RBI required ? Yes, the prior permission is required by a resident of India for selling shares to a resident outside India but only in certain specific conditions . This is as per Regulation 10 of Notification No. FEMA 20 /2000-RB dated 3rd May 2000 which was amended vide Notification No.FEMA.131/2005-RB dated March 17, 2005 as under 10. Prior permission of Reserve Bank ...
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15 Services For Which Exporters Can Claim Refund of Service Tax!
2008-04-20 10:07:00
The government has notified 15 services associated with the export activities eligible for refund of service tax paid . It is stated in the instruction no 341/15/2007-TRU, DATED 17-4-2008 issued by government as under Accordingly, 16 taxable services have been notified and the service tax paid on these taxable services, which are attributable to exports even if they are not used as input services, shall be refunded to exporters [notification No.43/2007-ST, dated 29.11.07 and notification No.41/2007-ST, dated 06.10.07, as amended by notifications No.42/2007-ST, dated 29.11.07, No.03/2008-ST, dated 19.02.08 & No.17/2008-ST, dated 01.04.08]. However , the blog author could identify only 15 taxable services vide notification stated in the instruction. [Readers are requested to identify the 16 th and send the same , so that that also can be published for the benefit of readers.] Sr. No Classification under Finance Act, 1994 Description 1...
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Search For Case Laws On Tax Matters , Circulars and Blog In One Click!
2008-04-18 16:14:00
Now search for case laws , circulars and taxworry.com in one click only.How to do it?No brainy thing. Write any term in the search field on the right side of the blog and hit the button "search "[or just pressing enter in your computer] . The search result will appear just below with three buttonsCase Laws : Initial focus is on Supreme Court Decision Circulars : All circulars are included .Articles : Here you will find related answers and articles published on this site.let me know how is the search.I will be trying to enhance this search further.
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Will We Get Tax Relief If Tax Was Deducted At Source In Canada?
2008-04-14 18:46:00
Indian Company has given loan, to its subsidiaries situated in Canada .Subsidiaries in Canada pays interest, to Indian parent Company after deducting Tax as per Canadian Taxation Laws.My queries are:Will Indian Parent Company be eligible for any benefit of Tax deducted by subsidiaries?Will such interest income will be taxed in the Hands of Indian Company ( resident- global income). Sargam Iyer , MumbaiThe interest income is definitely taxable in the hands of Indian company as the global income of a resident is taxable under Indian Income Tax Act. However , since there is Double Taxation Avoidance Agreement signed between Indian and Canada , there is specific provision under DTAA to avoid such double taxation. Clause 3 of Article 23 provides as under 3. In the case of India, double taxation shall be avoided as follows :(a) The amount of Canadian tax paid, under the laws of Canada and inaccordance with the provisions of the Agreement, whether directly or bydeduction, by a resident of...
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How To Get The Refund You Forgot To Claim ?
2008-04-07 17:08:00
There are many circumstances in which a person may forget to claim the credit of tax deducted at source. This is specially true of the cases where a person is either not supposed to file return of income as most of income is exempt , but some kind of TDS has been made or a person is ignorant about claiming refund of TDS/TCS . In all such cases ,it is possible to claim refund by filing condonation petition u/s 119(2)(b) of the I T Act even if such claim was not made in last six years. For example , if you find that you forgot to claim refund for Asst Yr2003-04 , you can file the petition to condone the delay in filing of return and claim of refund to Commissioner or Chief Commissioner or CBDT till 31/3/2010 according to value of refund involved. Important pointsThe important points of the scheme as per the CBDT instruction no 12/2003 Date : 30.10.2003 is as under 1. The petition is to be made to u/s 119(2)(b) of the I T Act. 2. The power to condone delay in claim of r...

How Much Money Can An Indian Gift In Foreign Exchange To A Person Resident
2008-04-06 08:09:00
How much money can an Indian mother gift to her son(British national now but Indian national previously) to be take to UK and what is the process of doing it. Does it require any special permissions or declaration.Amit Shah Thanks to burgeoning foreign exchange kitty of India, Reserve Bank Of India introduced Liberalised Remittance Scheme under which now Indian resident can give gift or donation of US D 2,00,000 in one Financial Year to any one resident outside India which includes charitable/educational /religious trusts etc. Read below the FAQ given on RBI site 18. How much foreign exchange can a resident individual send as gift / donation to a person resident outside India? Limit of USD 200,000 per financial year under the Liberalised Remittance Scheme would also include remittances towards gift and donation by a resident individual. Accordingly, under the Scheme, any resident individual, if he so desires, may remit the entire limit of USD 200,000 in o...
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So that You Never Forget Time limitation of Income tax,PF,Service Tax And F
2008-04-04 19:12:00
Care has been taken to put the date correct.But check yourself every data and if you find any difference , you will do good to all if you inform same to this blog.
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Under Which Head The Rental From Leasehold Property Taxed?
2008-04-04 06:14:00
I own a Long Term Lease Hold Shop (i.e. for 100 years and after which I would become their permanent tenant) which I had given on rent for Rs. 10000/- (Rs. 8000/- in the as Rent and Rs.2000/- as Amenity Charges) as I have the right to sub-let or sub-lease the same. I pay Rs.600/-(annually) as Lease Rent and Rs. 200/- (monthly) as Maintenance Charges. So My Query is :1. Will the income received by me will be taxable under the head ?Income from House Property ? or else in other head ?2.What kind of Deductions can be availed by me under above circumstances ? Asked By binanisk@..........com The specific head for rental income is "income from house property" charged under section 22 which states The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to ...
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Are Physical Disable Person Required To Have Proof Of Expenditure For Claim
2008-04-04 03:56:00
I am a handicapped ie.,deaf & dumb from birth. Also my spouse is handicapped ie.,deaf & dumb from birth. We are permanently deaf & dumb 100%. I am working as central govt employee and my spouse working in Public sector undertakings. I want to know if I have the eligibility to claim deduction u/s 80U and 80DD? . N Prakash , Chennai Income Tax Act under section 80U provides deduction to a physical disable person . Section 80DD provides deduction to a person who is spending on physical disable person. Hearing impairment is a disability defined for the purpose of section 80U .Therefore , in your case and your wife's case , both of you can get deduction u/s 80U of the I T Act.Do you require medical expenditure proof?No , under section 80U , there is no requirement of medical expenditure. This is a deduction to a physical disable without any other condition than that the person claiming should obtain a certificate of being physical disable person from a p...
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Can A.O Reopen The Dropped Case Of Reassessment Proceeding?
2008-04-03 05:43:00
The ITO started reassessment proceedings against me for the AY 2004-05, in May 2006 in a property related matter. After a few months the case was dropped by the ITO. I was informed only in February 2008. The ITO then started reassessment proceedings for the AY 2001-02 and passed an adverse order against me. I have gone in appeal. My question is can he once again restart the Reassessment proceedings against me for the AY 2004-05 once he has passed a written order saying that the case is dropped Joe Rodricks , Mumbai The power under section 147 read with section 148 are very wide. However , if a new facts come in A.O’s eyes and based on the new fact which was not before him when he drooped the proceeding u/s 147 , he is empowered to reopen the case. Read the decision of Supreme Court in Ess Ess Kay Engineering Co P Ltd vs CIT [2001] 247 ITR 818 This is a case of reopening. We have perused the documents. We find there was material on the basis of which the Income-tax Officer ...
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Can You Claim Exemption For Two Separate Years For Investment In same Hous
2008-04-03 04:18:00
I have been allotted shares of an US company under ESOP scheme in 1996. these shares are not listed abroad. I have sold some of these shares in FY 05-06 and invested the consideration in a residential property. I have availed the exemption u/s 54F to the extent of amount paid to the builders in that FY. In the FY 06-07, i have sold further shares. Can i avail the exemption u/s 54F for the FY 06-07 for the same property towards the balance amount payable to the builder. Please advice. The option was provided to me in the sept 1996. the shares were vested within 6 months from the date of option. some shares were sold in the year 05-06 and the balance in March 07.My CA says that I can get the exemption u/s 54F against the same property for the balance payable. My friend's CA says that I can't get the exemption. please advice. Kavitha, BangloreBefore I express my opinion, let us see what the exemption provison says u/s 54 F of the I T Act. The conditions for claim of exemption u/s...
More About: Investment , Years , Capital Gain

Can One Claim Deduction For Expense On More Than One Disable Dependant?
2008-04-01 04:10:00
I have to file income tax return where the assessee has 3 medically disabled person i.e Father , Mother and Uncle (fathers brother). What is the process of getting deduction for the A.Y. 2007-08 , What is the amount and what is deduction. Pinky SitalniSince you have asked regarding three relatives who are physically disable and you want to get deduction for expense on their maintenance , I must opine first on the issue whether you are eligible for one patient or more than one patient who are your relatives and dependent on you.I find the provision has used the word ?a dependant? and ? a person with disability? plain reading of which states that the deduction is allowed in case of one dependant t only. Read the opening lines of section 80DD80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dep...

What Every NRI Would Like To Know About Sale or Rent or Gift Of Immovable P
2008-03-31 04:12:00
Previously , the FAQs published by Reserve Bank Of India on the subject of acquisition of immovable property in India was published here. The second in series is the frequently asked question regarding "transfer of properties by various mode like sale,gift etc.Q.1 Can an NRI/ PIO/foreign national sell his residential / commercial property?A.1. (a) NRI can sell property in India to-i) a person resident in India orii) an NRI oriii) a PIO.(b) PIO can sell property in India toi) a person resident in India.ii) an NRI oriii) a PIO ? with the prior approval of Reserve Bank(c ) Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank toi) a person resident in Indiaii) an NRIiii) a PIOQ.2. Can an agricultural land / plantation property / farm house in India owned / held by a non-resident be sold?A.2. (a) NRI / PIO may sell agr...
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Do The Capital Gains On Sale Of Residence Get Better Treatment Than Gains
2008-03-30 14:25:00
I have recently sold my Commercial property for 31.5 lakhs which was purchased in 1999-2000 for 5 lakhs.According to my CA our capital gains comes around 15 lakhs & we have to pay 20% as a Long term capital gain tax.I want to have clarity on following points.1:-Should I invest 15 lakhs in other property to save tax or I have to invest whole sales proceedings of 31.5 lakhs.2:-What is the amount I have to invest in Capital gain Accounts( Nationalised banks) 15lakhs or 31lakhs if I need time to finalise on the property.3:-In Income tax rules for Commercial & residential properties are same or they are treated differently? Vijay Jaywant Naik , MumbaiGood question.!Yes , income tax law provides better treatment for long term gains on residential property than the commercial property.While the long term capital gains(LTCG) tax rate for both types of gains are same i.e 20 % , the rule for exemption are different .What are the difference ?The exemption for LTCG on residential proper...
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