'Is Gratuity Above Rs 20 Lakh Taxed?'

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: Dear Sir, can a private company employee get gratuity amount more than Rs 20 Lakh? How's the tax treatment above 20L?

Income above exemption limit will be taxable at slab rate.

Anonymous: Hello Sir, we have ancestral property which we are planning to sell it. Since it's in my dad's name can my dad transfer the part amount in my account after sale and will it attract any tax to me or my dad or can he send me as a gift? How can I invest the same money without paying much tax?

Amount given by father to son as gift is not an Income. Thus, no tax is applicable.

Anonymous: My daughter, a divorcee, works for a tech company in California. A lot of her earnings go towards fighting a court battle for the custody of her two minor children. What is the tax I have to pay on money I send to her for their upkeep?

Amount given to daughter as gift is not considered as Income and hence, no tax is payable.

Soumyajit: Sir, I will be selling a land for 80 Lakhs (buying price was 50 lakhs). What can I 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 1 year before or 2 years from date of such transfer of shares or construct the house property within 3 years from date of transfer of such shares.

If amount cannot be utilised before filing return then amount should be kept in CGAS (Capital Gains Accounts 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 Rs 4 lakh NSC IX (10 year tenure) in name of my mother. It is the sum of past many years saving and my mother is housewife and no income to file ITR. My question is at maturity of NSC IX (10 year tenure) whole interest is shown in AIS like 5.44lakh (only interest) so what action I take?

Do 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 then 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.