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Siddhartha: Please explain LTCG and how it applies to mutual funds/share market and proceeds from house sale?
It depends on the type of mutual fund (debt/equity/specified fund) and for house sale it depends on date of acquisition (before 1.4.2001 or after 1.4.2001 but before 23.07.2024).
In either case, it is taxable at 12.5% subject to certain conditions.
Anonymous: Hi Sir. I have this month sold one of my flat which I had received in redevelopment against my house in August 2021 and hence valuation on my earlier agreement was zero.
The government valuation of the same flat is about Rs 22 lakh, whereas I have sold the same flat on paper amount of 32 lakh (ie Rs 10 lakh above valuation).
So first of all what will be the taxable amount on my flat? Will it be Rs 32 lakh as there is no amount mentioned at the time of registration with developer or will it be Rs 10 lakh?
Also request you to kindly advise options for saving the taxable amount?
Property owners in a redevelopment project are generally liable to pay capital gains tax on handover of property for redevelopment and liable to pay tax in the financial year in which the occupancy certificate (OC) or completion certificate is received.
The capital gain is the difference between the stamp duty value (SDV) of the new flat (plus any cash compensation) and the indexed cost of acquisition of the old flat.
Accordingly, when new flat is sold, the stamp duty value (on which tax is already paid) becomes the cost of acquisition.
I understand that you have not paid tax at the time of hand over of property for redevelopment; accordingly, it is advisable to contact a tax consultant.
Sathyapriyan: Sir, I have earned Rs.30000 as short term capital gains from redemption of silver ETF FoF type of MF in FY 2025-25.
My total annual income in FY 2025-26 from salary, pension, bank interest and including STCG amount of Rs 30000 from silver ETF FoF type of MF is lesser than Rs 12 lakhs for which I think Section 87A benefit available.
Is my assumption correct? Or should I pay tax on STCG amount of Rs 30000 for FY 2025-26?
Gains from a silver ETF fund of funds (FoF) are taxed according to the investor's income tax slab rate if held for 24 months or less and, accordingly, 87A rebate is available.
Sanjay: Dear Sir, I retired on 31/3/2025 at the age of 68 years.
I have contributed to the Employees' Provident Fund until my retirement date.
I have not withdrawn my pension amount until the retirement date.
In June 2025, I applied for my Provident Fund (PF) amount, which I received subsequently.
I applied, in November 2025, my pension amount, under the Employees' Pension Scheme, (EPS) from November 2014 (pension eligible date) till pension retirement date, which I received on 10/2/2026; the accumulated pension amount is Rs 3,29,448.
There was no salary in the current year (2025-26) as I retired on 31/3/2025.
Now my question is that can this pension amount of Rs 3,29,448 be considered as pension/salary and basic deduction of Rs 75,000 eligible for income tax calculation purposes?
I have an income of approximately Rs 25 lakhs from FD interest, bond interest, dividend from company/MF etc, etc. This is for your information.
Hope to receive your reply asap. Thanks and regards.
A pension received after retirement is eligible for a standard deduction of Rs 75,000 under the new tax regime as it is treated as ‘income from salaries’.
If opting for the old tax regime, the deduction is Rs 50,000.
Anonymous: My mother expired in April 2021.
She has left some gold jewellery which she used to wear. I wish to sell the jewellery now.
Please advise how to proceed and also the tax implications.
I am male, a senior citizen and an income tax payee.
As you are selling inherited gold, the holding period of your mother and cost incurred by your mother is considered. On long term capital gain, tax of 12.5% is applicable.
For gold acquired before April 1, 2001, you can use a valuation report from a registered valuer to establish the fair market value (FMV) as of April 1, 2001.
This FMV, or the actual purchase cost (whichever is higher), is considered the cost of acquisition for calculating long-term capital gains (LTCG) tax upon sale.
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