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If you are a Government Servant, then, trading in shares is prohibited by Government Servants` Conduct Rules.
If you are in private employment, yes, you can trade in shares, unless that comes in conflict with your terms of appointment.
You need not get your accounts audited until the turnover crosses Rs. 40 lakhs per annum.
If you do derivatives trading, then, read the definition of `turnover` on my homepage....
There is no bar on your buying apartments wherever you desire.
The question of taxation will come as and when you rent out one premises and start earning rental income out of it....
Not at all adviseale.
Please do not involve your wife and mother in these transactions as running to ITO for explaining your tax returns and other related issues will prove costlier.
You can directly take it from your mother on rent. Your mother is exempt from taxation upto a basic limit of Rs. 1,80,000. If she is a senior citizen then first 2,40,000 is exempt.
Why enter into complicated dealings and put her in trouble?...
Dear Mr. Baheti,
Since this issue involves investment of a good amount of money, I suggest you seek the advice of a qualified Chartered Accountant who is practising in tax matters.
Half baked knowledge and information may prove detrimental to your financial health....
My mother is the owner of house.If she gives it on rent to my wife for Rs. 4000/pm. my wife further rents it to me for Rs. 10000/pm. Can I claim HRA deduction from my salary on account of rent paid to my wife by me....
I have my own appartment at Ramanathapuram, Coimbatore.Can I purchase Flat in Nesapakkam, Chennai as I am in Govt service and no service branch is functioning in Coimbatore ?
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I have my own appartment at Ramanathapuram, Coimbatore.Can I purchase Flat in Nesapakkam, Chennai as I am in Govt service and no service branch is functioning in Coimbatore ?
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Whether doing share trading besides your normal job legally permissible ? If yes then what are the tax implications for it ? Do I need to get an audit done if the share trading volume exceeds a paricular limit even though the profit may not be significant?...
what i take the intrest subcidy without owner of property...
dear sharma ji
thanks for your reply for ti pp in my cae
is hdfc prudence worth trying for pension corpus in sip way
i have hdfc top 200 also in mind
chadha mk dr...
At present in UNION BUDGET 2009-10 ( Dated: 6th July, 2009) they announced the Investment linked tax Incentives regarding the set up of "Businesses to be incentivised by providing investment linked tax exemptions rather than profit linked exemptions. Investment linked tax incentives to be
provided, to begin with, to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying
and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. Under this method, all capital
expenditure, other than expenditure on land, goodwill and financial instruments to be fully allowable as deduction".
Under this aspect we like to invest in Warehousing Facility but like to know is the depreciation i.e. 100% set off will be set off with the Warehouse( Sotrage) Income only or we can adjust from the other business profit in same books. Actually we are thinking to form new company for this warehouse to get this 100% Depreciation clause but it is fruitful only if the depreciation loss with be set off from other business profit in preceding year in same books of accounts.
Please give light to this matter your earlier & prompt reply will be highly appreciated.
Regards,
Sourabh Baheti
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Dear diamondlady, As u purchased the plot in march 2002 i.e. FY 2001-2002 & now u r selling it after 7 years in FY 2009-2010, ur total holding period is more than 3 years. hence ur gains `ll be considered as Long Term Capital Gains. Now u can claim benefit of indexation on this gain. Here is the tax calc. for u.
A. Original purchase price = 3L
B. Purchase FY = 2001-2002
C. Cost inflation index of 2001-2002 = 426
D. Sell FY = 2009-2010
E. CII of 2009-2010 = 632
F. Indexed purchase price = 3*632/426 = 4.45L
G. Sell price = 20L
H. Indexed LTCG = 20-4.45 = 15.55L
I. Tax on LTCG @ 20.6% = 3.2L
Plz. note ur marginal rate of tax is 30% but here the LTCG `ll be taxed @ 20.6%. To save on paying this LTCG tax amount, u have following options -
1. Invest the gain amount of 15.55L Rs. in Cap. gain saving bonds of NHAI or REC for 3 years.
2. Purchase a house for urself from gain amt. within next 2 years or construct one within next 3 years from the date of sell of ur plot.
Thanks
Ashal...
Reply to your question is available in the following clipping from the Hindu Businessline.
The gain arising from the sale of land will be taxable under the head capital gains. As you have held the land for more than 36 months, the gain will be treated as long-term capital gains.
Long-term capital gains are calculated by first deducting the expenditure incurred wholly and exclusively in connection with the transfer from the full value of consideration. From this amount, called net consideration, the indexed cost of acquisition is deducted to arrive at long-term capital gains.
The indexed cost of acquisition, in this case, is cost of acquisition multiplied by cost inflation index of financial year 2009-10, which is divided by cost inflation index of financial year 2001-02.
[The cost inflation index of financial year 2009-10 is 632 and the cost inflation index of financial year 2001-02 is 426]
Tax on the long-term capital gains is to be calculated at 20 per cent as increased by additional surcharge of 2 per cent and education cess of 1 per cent
Exemption u/s 54EC against the long-term capital gains is available on investment in bonds if the asset transferred is a long-term capital asset, the investment is in bonds of the NHAI or the Rural Electrification Corporation and the bonds are redeemable after three years.
For claiming exemption under section 54EC, the investment should be made before the expiry of six months from the date of transfer of the capital asset. In your case, the six-month period has expired and you cannot claim exemption u/s 54EC by investing in the bonds.
As far as investment in land is concerned, you cannot get any exemption unless a residential house is constructed on the land within the prescribed time.
Exemption can be availed u/s 54F if you propose to purchase a land and construct a residential house or purchase a flat if the assessee is an individual or HUF, the gain is from the transfer of a long-term capital asset that is not a house, the assessee does not within two years purchase or within three years construct a house other than the new house and the assessee is not the owner of more than one house (other than the new asset) on the date of transfer of the original asset.
For claiming exemption under sections 54F, the new residential house should have been purchased within a year or two years after the date of transfer or the construction of the new house should have been completed before the expiry of three years from the date of transfer of the capital asset.
For the purpose of claiming the exemption under section 54F, the amount not utilised for the purchase or construction of the new asset before the due date for furnishing the return of income for the relevant assessment year may be deposited before the due date for furnishing the return of income in any bank or institution in a specified account known as capital gains account scheme.
The proof of investing should be furnished along with the return of income for the amount to be considered to having been utilised for the purchase or construction of the asset.
The invested amount may be withdrawn for the purchase or construction of the new asset within the specified time.
If the invested money is not utilised within three years from the date of transfer of the original asset for investing in the new asset, it would be treated as income of the year in which the three-year period from the date of transfer of the original asset expires.
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I have sold my property after 36 months and the same has been reinvested / utilized recently for booking of new flat which will be constructed by 2011. My query is as under:
As per understanding with builder, I can request for cancellation of booking within 5-6 months if I am not satisfied with progress of construction and take back my money. In such a situation, can I go for purchase of other flat on resale. Will there be any tax liability on Long term capital gain reinvested and subsequently taken out for purchase of resale flat. Girish Kumar, Mumbai....
Dear Lakhotia Sir, I purchased a residential plot in March2002 for 3lakhs, registerred it in September2009. Now selling it for 20lakhs. what will be LTCG or STCG and tax for it?...
