'How to avoid capital gain tax on sale of land?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Mihir Tanna, associate director, S K Patodia and Associates, will answer them.

Anonymous: I have 2 flats at my home jointly and rented out and one flat on spouse name at our work place. Both flats at home town are rented out. We both are getting HRA but not claiming for IT deduction. What is my tax liability on our rented flats?

Rent income is taxable at slab rate.

You can claim 30 per cent as deduction from rent income and additional deduction for interest, if any, paid on housing loan taken for acquiring property given on rent, subject to fulfilment of conditions.

Prasanna: Dear sir, my mother is 79 and she has yearly pension of about Rs 2.1 lakhs and yearly interest from FD is about Rs 47 lakhs, is she eligible for submission of 15H, please answer.

A senior citizen can submit Form 15H if tax calculated on income is NIL.

Further, a resident individual with taxable income up to Rs 7,00,000 will receive a rebate from tax upto Rs 25,000 in FY 2023-24.

Thus, in your case, tax on bank interest and pension is not likely to be zero; you cannot submit form 15H.

Sridaran: I am looking for expert guidance on claiming exemption under Sec 80DD (for disabled dependent -- my son, in this case) of the IT Act.
I understand that I need to submit a Certificate of Disability issued by a competent medical authority / professional, along with the duly filled in Form 10-1 A.
There is a flat deductible of INR 75,000 if the degree of disability is greater than 40% but less than 80% (I can furnish the disability IDs issued by the state (TN Disability Passbook) and central governments (UDID card) as additional proof).
I read in many sites that there is no proof of expenditure required to claim this amount. Can you please confirm if that is correct? Thanks for your time.

As long as the conditions mentioned in 80DD are fulfilled and you have incurred expenditure on the medical treatment of the disabled person, the deduction will be allowable in full. The person is required to submit form 10IA.

Soumyajit: Sir, I will be selling a land for Rs 80 lakhs, (buying price was Rs 50 lakhs), what I can do to avoid capital gain tax. Please suggest.

Assuming it is income from long term capital gain, to save tax you can acquire house property and get exemption u/s 54F.

As per section 54F, if you want to buy a residential house property from long term capital gain from sale of shares then you must buy the residential house property one year before or two years from date of such transfer of shares or construct the house property within three years from date of transfer of such shares.

If the amount cannot be utilised before filing the return, then it should be kept in CGAS (capital gains account scheme).

To get the benefit of Sec 54F, person should not own more than one house property on the date of transfer of asset and not on the date of acquiring new residential property.

Anonymous: I purchased NSC IX (10 year tenure) in name of my mother amount of Rs 4 lakh that is sum of past many year saving and my mother is housewife and no income to file ITR ...so my question is at maturity of NSC IX (10 year tenure). whole interest is show in AIS like Rs 5.44 lakh (only interest) so what action i take ?? can i need to pay tax on 5.44lakh or what to do ???

Income from other sources (like interest income) can be offered to tax on accrual or cash system. Once the method of accounting is decided, it is advisable to follow the same every year.

In case you had offered interest income on accrual system in past and you have to offer the same in current year on accrual system. Accordingly, no tax on same income again on receipt basis.

• You can ask rediffGURU Mihir Tanna your questions HERE.

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Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.