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Dear Pradeep, Here is the Tax calc. for u -
2nd property -
A. Purchase price = 5L
B. Purchase Financial year = 2004-2005
C. Cost inflation index of 2004-05 = 480
D. Sell Financial year = 2009-2010
E. CII of 2009-2010 = 632
F. Indexed Purchase price = 5*632/480 = 6.58L
G. Sell price = 15L
H. Indexed Long term capital gain = 15 - 6.58 = 8.42L
Now if u purchase a ready built property within next 2 year from the date of sell of ur 2nd property (till 28/07/2011) or construct a house within next 3years (till 28/07/2012) & use 8.42L Capital gain amount to invest in this new property u can save ur full LTCG Tax liability.
Now in context of ur full post or should i say next part of ur post that u intend to sell ur 1st property also, a tricky situation may arise - If u sell ur 1st property after purchasing ur 3rd property but within 1 year, u may partially adjust ur LTCG of 1st property against the purchase of this 3rd property.
It`s upto u how u use the situation to the max. for ur favor.
thanks
Ashal...
Dear Raja Tagu, U can continue ur PPF aact. till completion of first 15 years or ur current block of 5 years of extension if opted for after 15 years of acct.
Once 15Y or the block of 5Y extension completes, u can`t extend ur PPF account.
U may make fresh investment of 70K yly & may claim tax benefit on ur indian taxable income if any.
Thanks
Ashal ...
Dear Mr. Pradeep,
The gains of Rs. 10 lacs on sale of II property will become taxable as long term gains after indexation benefits.
You can however escape tax totally, if you invest the entire gains (100%) on another property.
Yes, you can sell the first property whenever you choose. Again that will also invite capital gains tax subject to benefits being available (upto 31.3.2011) under Section 54.
No one can prevent you from repaying the homeloan taken for any property. You may be called upon to pay some amount towards pre closure of the loan account....
A small correction to my previous reply on the subject.
While pension is treated as salary, family pension paid to widows will be treated as income from other sources. 1/3rd of family pension (subject to Rs. 15,000 limit) will be allowed as deduction and only the balance counted for taxation limits.
First 1,80,000 of the total Indian income of a woman is not taxable. Beyond that tax is payable @ 10%.
...
Pension including family pension paid to widows and widowers is treated as salary for taxation purposes.
Sub Section iia of Section 57 of Incometax Act, 1961 states as follows:
[(iia) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or 11[fifteen] thousand rupees, whichever is less.
Explanation.For the purposes of this clause, family pension means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death ;]
So after deduction of 1/3rd of the family pension (subject to a maximum of Rs. 15,000 per month), if the annual income exceeds the limits laid down for ladies, then only, your mother has to pay tax.
Please refine your question if you have any further doubts....
Dear Pervertedmoron!
As per existing forex rules, buying online lottery tickets is prohibited by the Reserve Bank of India.
I reproduce the relevant portions of RBI Master Circular on foreign exchange remittances below:
A.17 International Debit Cards
17.1 Banks authorised to deal in foreign exchange are issuing International Debit Cards (IDCs) which can be used by a resident for drawing cash or making payment to a merchant establishment overseas during his visit abroad. It is clarified that IDCs can be used only for permissible current account transactions and the item-wise limits as mentioned in the Schedules to Rules as amended from time to time, are equally applicable to payments made through use of these cards.
17.2 The IDCs cannot be used on internet for purchase of prohibited items like lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call-back services, etc., i.e. for such items/activities for which drawal of foreign exchange is not permitted.
...
Hi -
My mother is a widow and gets pension from Central Government on account of my fathers death. How is tax calculated on pension income to a widow ?...
Opened PPF accounts can be continued. However, NRIs cannot open new PPF accounts.
Therefore, you can deposit rs. 70,000 every year and get the benefit of Sec. 88 too.
The situation MAY change w.e.f. 1.4.2011 when the Direct Tax Code (at draft stage now) comes into effect....
Dear Vivek, First of all I`m sorry as i forget to post in prev. post -
1. Ur paternal as well as maternal aunts & there spouses (of course for ur wife side too) r also eligible for taxfree gifting.
Now the answer for ur current post.
1. children above the age of 18 r major & below that age r minor, simple isn`t it.
2. ur brother`s wife can gift u 1L Rs. every year tax free for u, the only condition, her own income sources justifies such gifts year after year. If u r giving gifts plz. note to relationshos where u r nephew (niece for female giver) to the receiver, such gift `ll be taxable in the hands of recipients. In other words, u can`t gift to ur Uncles & Aunts & their spouses.
3. Strange but it`s true & it`s done to plug the loophole that every husband/wife `ll gift from higher income earner to lowe or zero income earner & consequently income earned from the gifted amount `ll attract low or zero tax. For example, ur wife is a house wife & u r in 30% Tax slab. Now if u invest under ur own name for a 1L bank FD, the interest `ll be taxable @ 30.9% but if u invest the same FD under ur wife`s name, the interest `ll be taxfree if gifting is allowed between husband & wife which is not the case. I hope u got it.
4. Having joint account is no problem, till u r using it for normal day to day expenses. The problem starts when u use the amount of this joint bank account to invest under ur wife`s name. As she doesn`t has any income to bring her money into that joint bank acct. So in this case clubbing provisons `ll be applicable & the taxable income earned from such investments `ll be added to ur income.
Thanks
Ashal ...
I have become NRI. When I was resident Indian I have opened PPF a/c can I deposit RS.70000 every year in same ppf account can avail tax benefit under section 88...
Hi ashal,
Many thanks for your detailed reply. More queries to quiz you :
- Please clear the diference between Major children and Minor children.
- your mentioned points are valid when I am at receivg end , do they are also valid when I am at GIVING end. eg: If my brother`s spouse gives me 1 lac rupee gift per year , will it be taxable.
- "The catch - husband or wife can`t gift each other ". It is very strange.
Myself and my wife is having a joint account in which I am the earning member and we both use the account very frequently through our separate debit card, so now.... how the GIFT TAX will be imposed on my wife.
Regds
Vivek Jain
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If I purchase online tickets for a foreign lottery like ELGORDO etc n manage to win a prize, what would be the proper procedure to get the money transerfered to India? What are the tax liabilities? What are the regulations etc?...
I Wanted to about capital gain. My history as under
a. I purchased 1st propery on 13/04/2000 @ RS. Three Lack
b. i purchased 2nd prperty on 6/12/2004 @ Rs.5 Lack.
c. I Sold 2nd property on 15 lak on 29/07/2009
Now i want purchas new propery @ rs 20 lkah with additional loan of some bank (used money of 2nd property + new loas)
if I purchased 20 lakh new property on same year & next year i want sale my 1st propery and repayment of loan amount new property 20 lakh.
it is allow to pay repayment of home loan ? OR paid capital gain of 1st property?
Regards
Pradeep
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can we take tax rebate of 1 lac with one investment plan or we have to invest compulsory to different plan ? ...
Dear Vivek, I forget to post some added info for ur 49K figure.
In a FY, if u do a smart work by getting gifts from several friends & each gift is of value 49K. My dear friend, u r in trouble as the 50K limit is the composite limit & the moment it crosses (49+49+49K.... = more than 50K), the full amount `ll be treated as ur income from other sources & u `ll have to pay tax on it as per ur marginal tax rate.
Thanks
Ashal
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