I am having 1residential property &1industrial shop, my wife is having 1residential property other than our above mentioned residential property,we want to sale my wife s property &my industrial shop & bye 1residential new property approx @94 L, our both property sale value is 85 L,if We invest this 85 L to bye 94 L property what will be capital gain tax?
My manufacturing business turn over is 1.2cr can I file return U/Section 44adof income tax? Can I claim my 6percent profit or I will have to calculate my actual profit & file return accordingly
Hi
If you invest both of your sale proceeds into a new residential house property in co-ownership, both of yours capital gains shall be exempt subject to conditions of time limit are met in accordance with section 54 and section 54F and no taxes shall have to be paid.
Yes, you can claim benefit of presumptive taxation under section 44AD. Net profit shall be 6% of all your receipts against sales are received through banking channels or 8% if cash receipts are also there.
If your business is in the Form of Proprietorship or Partnership you can file Returns u/s 44AD for Turnover upto Rs. 2 Crores.
You need to bifurcate the Turnover into Cash Turnover and Non-cash Turnover.
Profit should be declared at minimum 8% on Cash Turnover and 6% on Non-cash Turnover. You can show higher profits also if you wish.
There is no need to calculate actual Profits as 44AD is a special provision where you are allowed to show deemed Profit without maintaining any Books of Accounts
Hello,
No Tax would be payable on the Capital Gain of both if you invest the sale proceeds for the property as per Sec. 54/54F.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Yes, You can use the Sec. 44AD PResumptive Taxation. For receipts through the banking channel, 6% would be your deemed net income, while for CAsh receipts 8% would be deemed your net income.
Hi,
Yes, you can file return u/s 44ad and declare your income at a flat rate of 6% of gross receipts for digital transactions & 8% for non digital.without claiming any business expenses.
Further, there would be no capital gain tax liability if you are investing both of your sale proceeds into a new residential property.
Also,tax benefits get divided among co-applicants in case of a joint loan and joint ownership.
Hello Sir,
Yes, you can take the benefit of presumptive taxation scheme u/s 44AD.
As per the provisions under Section 44AD, computed presumptive income (6%-Digital receipts or 8% of gross receipts or turnover of the eligible business for the previous year) is considered as the net income for the business covered under the presumptive taxation scheme.
No capital gain tax as you have invested the entire sale amount in new house property. If you are earning long term capital gain.
If its short term capital gain you wont get any benefit of above investment.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
You can claim 6% profit.
- You and your wife can claim exemption on the sale of residential property and shop. Capital gain will be calculated separately for each transaction. Against sale of residential property, you need to invest only capital gain and against sale of shop, you are required to invest sale consideration.
- Yes you can claim benefit u/s 44AD provided constitution of business is not company or LLP. For digital transactions, percentage is 6% otherwise 8%.
