Dear sir,
I sold a plot on 21st June 2016 measuring 2000 sq yards, which was bought on 18th April 2006. the cost of purchase and sale has a huge margin. I was suggested by local auditors to go for LT CGT as early as September 15th 2016. and also they told me there is no much scope for claiming improvisation costs as I don’t have any documents or bills to prove. but actually, I did some land filling and built a compound wall.
IF IMPROVISATION OF THE PLOT WAS DONE BEFORE 6 YEARS FROM NOW, STILL THE NEED TO PRODUCE EVIDENCE IS MANDATORY? IF I CLAIM SOME EXPENSES WHICH I REALLY SPENT WITHOUT MUCH PAPER EVIDENCE IS IT ACCEPTABLE TO THE TAX DEPARTMENT.
CAN WAIT TO PAY THE TAX TILL THE END OF FINANCIAL YEAR ? THAT IS MARCH 2017. THANKS
CAN WAIT TO PAY THE TAX TILL THE END OF FINANCIAL YEAR ? THAT IS MARCH 2017. THANKS
Dear sir,
You will have to prove the improvisation cost with some supporting. Without supporting, it's very unlikely to prove the improvisation cost.
You should pay the advance tax as soon as possible. If you wait till 31st march 2017, you will have to pay interest on it.
Please feel free to revert in case of any doubts.
Thanks and Regards
CA Abhishek Dugar
Need to check the documents before suggesting. As per ur submission we think that if you are not having any proof then better not to put.
If you can generate any bills or take confirmation from the persons to whom you have paid amount then you can take the same and claim improvement amount.
You can claim expenses related to brokerage etc on sale of plot. For expenses related to improvement, if case comes under scrutiny you need to produce evidence.
Advance Tax will be paid if tax payable exceed Rs10,000/-. In case of LTCG entire tax is to be paid on September 15. Delay in Advance payment results in interest @1% for month or part thereof.
Against sale of plot you can claim exemption under 54F if you invest in residential house provided you don't own more then one residence house on date of transfer of plot or you can claim exemption under 54EC by investing in bond within 6 month. Maximum exemption under 54EC is Rs 50 Lacs.
Hello Sir,
Yes it is mandatory to maintain all the improvisation expenses to prove the expense was in context to the property.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Dear Sir,
Yes you can wait to pay tax till March 2017 but you will be charged Interest on the same as you have not paid the respective advance tax.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
DEAR SIR, MY FATHER AS A SENIOR CITIZEN IS EXEMPT FROM PAYING ADVANCE TAX. CAN THIS EXEMPTION BE APPLIED TO LONG TERM CAPITAL GAINS TAX . HE SOLD THE PLOT ON 21ST APRIL 2016. IN CASE WE DIDNT PAY THE ADVANCE TAX BY SEPT 15TH 2016 AND POSTPONED IT TILL 15TH MARCH 2017, HOW MUCH INTEREST WILL BE LEVIED AND THAT WILL BE ON WHOLE OF CAPITAL GAIN OR ONLY THE AMOUNT OF PRESUMED TAX. THANKS .
DEAR SIR , REGARDING THE ADVANCED TAX IS IT MANDATORY TO PAY THE TOTAL TAX BY 15 TH SEPTEMBER 2016. OR AS 30% BY SEPTEMBER, 60% BY DECEMBER, 100% BY MARCH 2017 WITHOUT ANY PENALITY. THE LONG TERM CAPITAL GAINS TAX IN THE ABOVE CASE IS NEARLY 20 LAKS. HE IS AN INDIVIDUAL TAX PAYER.
It is better you pay by 15th Sep.
DEAR SIR, MY FATHER IS A PENSIONER WITH NO OTHER TAXABLE INCOME BUT GOT SUBSTANTIAL AMOUNT AS LONG TERM CAPITAL GAIN BY SELLING THE ABOVE MENTIONED PLOT ON 21ST JUNE 2016. SO HE CAN CLAIM EXEMPTION FROM PAYING ADVANCED TAX ON LTCG, AS A SENIOR CITIZEN, WHICH HE INTENDS TO PAY AT THE END OF FINANCIAL YEAR IE MARCH 15TH 2017 AS ONE TIME PAYMENT,WITHOUT ATTRACTING ANY PENALITIES. I MEAN TO ASK YOU THAT,WEATHER HE CAN WAIT TILL MARCH 15 2017 WITHOUT ANY LEGAL IMPLICATIONS. THE INTEREST COLLECTED ON DELAYED PAYMENT OF TAX (ADVANCED) IS TOO HIGH. MEANWHILE THE WHOLE AMOUNT IS LODGED IN FIXED DEPOSIT. DO THIS HAS ANY IMPLICATIONS? THANKING YOU SIR .
Dear Sir,
As informed by you, if your father is a Senior Citizen then he is not liable to pay Advance Tax and you can pay the respective taxes by March"17.
AS PER LAW THE ADVANCED TAX CAN BE PAID IN 4 INSTALLMENTS STARTING FROM 15 MARH TO 15 TH MARCH NEXT YEAR. IS THIS APPLICABLE TO LONG TERM CAPITAL GAINS TAX WHERE THE AMOUNT IS RECEIVED AS ONE TIME PAYMENT ON 21 JUNE 2016.
THE LONG TERM CAPITAL GAINS TAX AMOUNT IS GOING UPTO 20 LAKS . SO BY SEPTEMBER 15TH 6 LAKS( 30%) BY DECEMBER 15TH 12 LAKS(60%), BY MARCH 15TH THE REMAINING 2 LAKS(100%). THIS IS ABOUT NON-SENIOR CITIZEN. THANKS.
IS IT IMPORTANT TO FILE INCOME TAX RETURNS ALSO AT THE TIME OF FILING LONG TERM CAPITAL GAINS TAX.
Yes, you have to file income tax return.
Sir It is better to pay advance tax at a time to avoid any interest. Also he need to compulsory file the Return of income for LTCG.
Dear Sir,
The Amount provided of Advance Tax is incorrect.
The tax payable shall be 15th September - 9 Lacs
15th December - 15 Lacs
15th March - 20 Lacs.
The advance tax provisions have changed for this FY.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP