Capital gain/loss on sale of rental Indian house property by US based NRI/OCI
Please clarify the below in regard with income tax filing in India :
(1) I understand that only those expenses which have some kind of paper proof are allowed to add to the cost of house property sold to reduce the capital gains at the time of sale of such property. Can such expenditure be in pure cash payment, or some banking trail is must when such property is being sold after 25 yrs. of purchase and some expenses of improvement were incurred like 20 yrs. ago and some 10 yrs. ago and some at present ?
(2) The payment to mason, carpenter, welder, etc. are usually in cash only and in thousands like Rs.40K or 50K or more. How to record these payments to use at the time of calculating capital gains in future when such property will be sold ?
(3) A USA based NRI/OCI will have to file his ITR (to tax capital gains) in India as well as in the USA when he/she will sell his/her house property located in India. Will the method of calculating capital gains be the same in both ITRs or the final amount of capital gains to be taxed will be the same for each ITR filing in India as well in the USA ?
(4) What about the kid of such NRI/OCI who went to USA 10 yrs. ago with his/her parents at the age of 8 yrs. old and now OCI there, but he had his/her Aadhar Card & PAN Card while leaving India to USA 10 yrs. ago. As he/she is adult now, should he/she get his/her same Aadhar/PAN card updated now with new picture & fingerprint while visiting to India ?
(5) Are the following two formats on plain white paper ok or need some change for keeping the paper proof of Cash / Net Banking payments incurred on the improvement of above-mentioned house property in above Q. 1 and Q.2 ?
CASH RECEIPT VOUCHER
Date:
I ,_______________________________________________have received the Sum
of Rs._______________________________(_____________________________
_____________) in cash from Mr./ Mrs./Ms._______________________________
for the Payment of___________________________________________________
Prepared By: Signature of Receiver
RECEIPT VOUCHER
Date:
I ,_______________________________________________have received the Sum
of Rs._______________________________(_____________________________
_____________) in Cash/UPI/Card/Online Transfer/Cheque__________________
from Mr./ Mrs./Ms._______________________________towards the Payment
of_______________________
Asked 1 year ago in Income Tax
Please clarify :
(1) I understand that above drafted cash receipt voucher or receipt voucher should be used to keep as a paper proof of payment of capital nature expenses to add to the buying cost of house property while calculating capital gains on its sale. What is the guarantee that these cash receipts are not fake practically because these can be easily made by getting signed from some contractor or labour class and then kept as a proof to use later after many years when house is sold ?
(2) I understand that 1 rupee revenue stamp is needed if payment exceeds Rs.5,000. Is there any year printed on revenue stamp because I see all revenue stamps of many past years which are same and no sign to find their printing year? Are the same 1 rupee revenue stamps being used since year 2000 without any change in their look & design?
(3) Is there any maximum cash payment limit of cash receipt voucher when paying to any labour or contractor as cost of improvement of house property ?
(4) Can some revenue nature expenses like renovation, whitewash, etc. be also added to the cost of buying to reduce the capital gains on the sale of house ?
(5) If someone has not claimed the deduction of interest of housing loan in regular ITRs filed over many years, then can he/she be allowed to claim that total interest to add in cost of buying to reduce capital gains if house is sold in future ?
Asked 1 year ago
