One of the million dollar questions is today's topic i.e. How to calculate capital gain for Under-Construction Property :). Lack of clarity in income tax act is responsible for numerous interpretations available online. The seller gets confused and left high & dry. In my post, Register under-construction property for a home loan, i shared my opinion as a buyer. In other words, i shared negatives of registering under-construction property. If i consider myself as a seller, the biggest advantage is that i can save on capital gain if i register under-construction property. The seller can ... Read More
Adjust LTCG against the Basic Exemption Limit and Save Income Tax
Income Tax is one of the most complex subjects in India. Most of the taxpayers struggle on this front. Through the posts on this blog, i always share my learnings, means and ways to save Income Tax in a legitimate way. The objective is to decode and explain the complex income tax rules in a simplified manner. In this post, i will share how a taxpayer can adjust LTCG against the basic exemption limit. Thus tax savings for the taxpayer. Some of the points shared in this post are already discussed in earlier posts. I hate being repetitive but some of the readers might not be able to comprehend. ... Read More
Capital Gain Deposit Account Scheme – All you want to know
Capital Gain Deposit Account Scheme is applicable for taxpayers who would like to purchase a new property to claim exemption u/s 54. In layman terms, if you have sold a property and long term capital gain is arising from the transaction. You can retain the capital gain in your Savings Account till the date of filing the Income Tax Return or till the due date of ITR filing. The last date of filing ITR is for the financial year in which capital gain arises. Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year. Under extraordinary circumstances, it can be ... Read More
Capital Gain Tax – Long Term Capital Gain
In my previous post on Capital Gain Tax - Short Term Capital Gain we discussed capital gain tax in detail. We also discussed how short term capital gain tax is calculated. Before going through this post, I would request you to go through my previous post. This post is continuation of previous post Capital Gain Tax - Short Term Capital Gain. In this post we will discuss Long Term Capital Gain and why it is so critical from Income Tax Perspective. Just to recap, If the capital asset is held by an individual for a period more than min Holding Period as specified for each capital asset then Gain / ... Read More