Additional income earned in the year

You can add additional incomes while filling the return. You need not pay any penaly for the same. Only interest shall be payable for delay in payment of income tax if it is more than 10,000.

Regards

Ankit Jain

9810661322

Dear Tax Payer,

Case Analysis

Point 1- Capital Gain/Loss on sale of Flat

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There is no purchase or sale value details available in the query. Hence, we cannot determine whether there is any Capital Gain or Capital Loss in sale of the flat. You can better approach a tax consultant with your purchase document, document for any improvement done on the property and sale document.

Point 2- Interest Income

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Please note that Savings Bank interest is taxable in the hands of the assessee. However, u/s 80TTA a deduction upto 10,000 is available. Please note that this deduction is available only for SB interest not for FD interest.

Penalty

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There will not be any penalty in non-declaration of sales of flat/interest income to the employer. However, these particulars MUST be disclosed in your IT return for the relevant assessment year. If you do not disclose in the IT return, IT department has power to impose penalty for concealment u/s 271(1)(c).

Regards,

CA. Rajeev P T

Partner

Rajan Chakravarthy & Associates, Chennai

Email: ca.rajeevpt@gmail.com

From your question it is not clear as to which assessment year is under consideration. For asst year 2015-16 ie financial year 2014-15, return is due on 31-08-2015(extended date) . If you pay taxes and file return of Income before 31-08-2015, you can avoid payment of mandatory interest under section 234A. Further if there is a tax on additional income, I presume you have not paid advance tax and you are liable to pay interest u/s 234C. Further if you have not paid advance tax you will be liable to pay interest u/s 234B with effect from 01-04-2015 to the date of payment. Any penalty will arise only on non filing of return and non payment of income tax, based on action moved by the income tax officer.

You can file your income tax return by including the incomes and investments that were not included in Form No. 16 issued by your employer. You can also claim carry forward of loss on sale of your flat. Pl ensure that you will file your income tax return within the due date,i.e., 31st August 2015 to carry forward your loss on the sale of your flat.

There will not be any penalty for not declaring your investments to your employer.

Hi Prashant

Yes you need to pay tax on the extra income apart from Salary Income.

For exact calculation you need to provide the complete details such as Purchase date, Purchase value, Sale date, sale value in respect of the property you sold to calculate the gain/loss.

Then you need to provide Bank Sb Interest, FDR interest. Also you need to clarify from the bank whether any TDS was deducted from the FDR interest.

There will not be any penalty in this case.

You submit the same and we will provide the calculation after which you can go for payment and filing.

You can file the Income tax return by considering the capital gain from the sale of flat and the interest on the deposits and pay the taxes now in order to avoid any tax demand/ penalty and litigation .

Thanx Mr. Prashant

welcome

Thank you

You are welcome. Have a good day.

Regards,

CA. Rajeev P T

Hello Sir,

Considering your case you have to keep the following points under your checklist:

1. File your IT Returns on time to carry forward your Capital Loss on sale of Flat.

2. No Penalty for not declaring Interest Income.

3. Interest will be charged in case if the the amount of Tax Payable while filing your returns exceed Rs.10,000/-.

4. Income from Savings Bank Interest is exempt upto Rs.10,000/- u/s 80TTA.

For any further clarifications feel free to get back.

Thanking You.

Regards,

CA Rohit R Sharma

+91-9920930544

www.raskassociates.com