ASK MIHIR: 'Will I have to pay double income tax?'

Do you have any personal income tax query?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Please mail your queries at getahead@rediff.co.in with the subject line 'Ask Mihir' and Mihir Tanna will answer all your tax queries.

Indraneel Mandal: I have a problem with regard to IT payment for myself as a salaried individual for assessment year 2021-22. I had delayed my payment, but was able to pay it within the designated time. I was further asked to pay an amount of around Rs 4,341 by 31st March. However I had some issues with the transaction password on my online bank account, and thus missed the deadline. The amount is still unpaid. What should I do?

Mihir Tanna: I understand that you have filed your Income Tax return and demand is intimated to you via Intimation u/s 143(1) of Income Tax Act.

In case income tax demand is not paid within 30 days of its generation, interest of 1% p.m. will be levied u/s 220 of Income Tax Act. So pay tax online through e-filing website or directly from the bank website.

Chetan Rane: I am an Indian resident. I have an offer from 1 of the UK firm. I will be working for them from India. They will be depositing GROSS Salary in my Indian Bank account. Can you tell me if I have to pay double TAX or only to the Indian Govt?

Mihir Tanna: Residents of India are required to pay tax in India on global income. It is advised to seek clarification from your UK employer whether they will deduct Income Tax from your salary in the UK before remitting to an Indian Bank account.

If yes, then you can claim credit of UK taxes deducted, subject to fulfillment of certain conditions, from Indian Tax Liability.

Dipak Gandhi: I have been adopted by father's cousin brother.

How much cash can my wife gift to my real biological brother without causing any tax liability at his end?

What I know that, in normal case, my wife can gift any amount of cash to my real brother without causing any tax liability for him.

But would that change because I have been adopted by my father's cousin brother. Does that mean that my biological brother is no longer my real brother?

Please guide me.

Mihir Tanna: There are no specific provisions related to the definition of relative in case official adoption formalities are completed. However, in my view, gift is considered to be received by a person from the spouse of a brother and it can be subject to litigation.

Ravindra Reddy: Dear Sir, I shall be thankful to you if you can give your valuable answer for my following query.

1. I sold a piece or part of my residential plot to someone, say A in Financial Year 2021-22. From the gains of such sales, I purchased Capital Gain Bonds - 54EC to lessen my Capital gain tax for FY 21-22. I know that the max amount of purchase of capital gain bonds limits to Rs 50 lakh in a Financial Year.

2. Now I intend to sell the remaining part of my residential plot to someone, say B in this Financial Year 2022-23. Can I purchase once again the Capital Gain Bonds in this year 2022-23 also from the sale amount to minimise my capital gain tax for FY 2022-23?

Kindly clarify at the earliest

Mihir Tanna: Yes, you can claim tax exemption on sale of residential plot by investing capital gain amount in specified bonds within 6 months of transfer of plot subject to upper limit of Rs 50 lakh of FY 22 23 and other specified conditions.

You can read more of Mihir Tanna's responses here.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers' requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.