Sold House? Calculate Capital Gain/Loss

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.

Dipak: Is one required to pay tax on total interest of bonds or total interest less accrued interest paid at the time of purchase of bonds? Contract note shows this amount. If i pay tax after setting off accrued interest what happens to TDS amount deducted? Also there will be mismatch between return and 26AS. If I pay tax including accrued interest, it is out right loss to me.

You have to divide TDS deducted in FY 2023-24 in two parts.

For the TDS in proportion of income to be offered in FY 2023-24, you can claim TDS in FY 2023-24. For the interest income already offered to tax in FY 2022-23, you have to file Form 71 and get the credit of said TDS in FY 2022-23.

Anonymous: I WILL BE GETTING SALARY 3.5 LAKH YEAR 23 -24 AND I AM GETTING SHORT TERM PROFOT ON SHARE SELL RS 1.5 LAKH AND 2 LAKH ON LONG TERM DO I HAVE TO PAY INCOME TAX?

Assuming you will opt for new tax regime, income up to 3 lakh tax will be NIL. On balance salary income of Rs 50000 tax @5% will be Rs 2500. On short term gain covered u/s 111A of Rs 150000 tax will be Rs 22500 and on long term gain of Rs 200000 covered in 112A, tax will be Rs 10000. However, you will get tax rebate of Rs 25000 and you have to pay Rs 10000 plus Cess @4%.

Vinod: Hi, my in-laws sold their home for 1 cr in Bangalore in 2024. They had bought land in 2002 for 1.5 lakh and built home in 2008 for 25 lakh. How much tax they need to pay for the capital gain or which bonds are good for investing to avoid the tax. They are 63 yrs old.

Capital gain amount is derived by deducting indexed cost from sale consideration.

Assuming land is acquired in FY 2002-03 for Rs 1.5 lakh, indexed cost will be Rs 497143 and assuming property is constructed in FY 2008-09 for 25 lakh, indexed cost will be Rs 63,50,365. Total will be 68,47,508. Accordingly the capital gain will be Rs 31,52,492 taxable @20%.

You can calculate the indexed cost from the income tax calculator (external link).

For bonds please check with bank.

Anonymous: I have income from interest on NCD on which tds is deducted from the current AY. The Debenture has matured in this FY. Interest is paid from say 15 Jan 23 to 14 Jan 2024 .Maturity date is 15 Jan 2024 Tds is deducted on interest from 15 Jan 23 to 14 Jan 24. I have already declared accrued interest income from 15 Jan 23 to 31st March 23 in my itr for AY 24. How do I show interest income from April 23 to 14 Jan 2024 as my tds certificate shows interest for the full period as mentioned above?

You have to divide TDS deducted in FY 2023-24 in two parts.

For the TDS in proportion of income to be offered in FY 2023-24, you can claim TDS in FY 2023-24. For the interest income already offered to tax in FY 2022-23, you have to file form 71 and get the credit of said TDS in FY 2022-23.

Sanjay: Sir, I have purchased a flat for Rs 40 lakh in Warje area of Pune in 2012 and I sold it for Rs 60 lakh in 2023 after 11 years. What is my capital gains tax?

Capital gain amount is derived by deducting indexed cost from sale consideration.

Assuming residential property is acquired in FY 2012-13 for Rs 40 lakh, indexed cost will be Rs 69,60,000 and accordingly there will capital loss.

You can calculate the indexed cost from the income tax calculator (external link).

• 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.