Results for #taxes
Taxes & Duties
#save#taxes#property#flat#crore
In what way can I lawfully save taxes on property in two scenarios related to my flat. Scenario one, the value of my flat is 1 crore and I want to sell this and buy a new flat in Mumbai. Scenario two, I sell my flat and want to keep the money without investing it again in a property. Please suggest.
In what way can I lawfully save taxes on property in two scenarios related to my flat. Scenario one, the value of my flat is 1 crore and I want to sell this and buy a new flat in Mumbai. Scenario two, I sell my flat and want to keep the money without investing it again in a property. Please suggest.
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Answered on November 08, 2017
Under scenario 1, if you sell your residential flat and invest the capital gain arising therefrom in another residential flat then the provisions of section 54 of Income Tax Act would apply i.e selling of one residential property and buying another residential property within the time limit specified under section 54 of the Income Tax Act will apply and capital gains so arised shall be exempted...
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Legal
#land#mumbai#sell#property#builder
I own a piece of land in Mumbai jointly with my three brothers. My father insists that none of us can individually sell our share of the property. Therefore, we have jointly approached a builder to build a residential property on that land. We would like 4 2BHK flats, but the builder has given us an option to take a lump sum of 3 crores. If we accept his offer, what would be the taxes due? Is there any other method we can follow to maximize our profit in this situation?
I own a piece of land in Mumbai jointly with my three brothers. My father insists that none of us can individually sell our share of the property. Therefore, we have jointly approached a builder to build a residential property on that land. We would like 4 2BHK flats, but the builder has given us an option to take a lump sum of 3 crores. If we accept his offer, what would be the taxes due? Is there any other method we can follow to maximize our profit in this situation?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
Capital gains will be applicable on the transaction and the same could be Short Term Gains or Long Term Gains depending on how long you have held the property. You could utilise the sale proceeds received from the Builder to acquire another residential property within a period of 1 year from the date of the sale to minimise and/or avoid capital gains payment.
Legal
#huf#commercial#taxes#transfer#property
I recently formed an HUF with my wife and 2 children. I have a commercial office, out of which I get a healthy income and I also pay the taxes on that income. But now as I have formed an HUF I cannot create any funds above 50,000 per annum. I want to transfer this property with the rights of being a karta of my HUF, how can I go about this?
I recently formed an HUF with my wife and 2 children. I have a commercial office, out of which I get a healthy income and I also pay the taxes on that income. But now as I have formed an HUF I cannot create any funds above 50,000 per annum. I want to transfer this property with the rights of being a karta of my HUF, how can I go about this?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
You can transfer the property from your name to the name of the HUF by executing a transfer deed to that effect.
Legal
#property#taxes#relatives
We have house in rural parts of India which my father had acquired this property through the separation about 40 years ago. We don't have the legal papers to this property but we have been paying taxes for the past 40 years. Can we claim this house now? Can my relatives create problems as their names are on the papers of the property?
We have house in rural parts of India which my father had acquired this property through the separation about 40 years ago. We don't have the legal papers to this property but we have been paying taxes for the past 40 years. Can we claim this house now? Can my relatives create problems as their names are on the papers of the property?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
You can file a suit on the basis of adverse possession before a court of competent civil jurisdiction and seek ownership of the property on the basis of you being in exclusive possesion of the property for over 12 years.
Taxes & Duties
#flat#offer#taxable#taxes#sell
I bought a flat in Coimbatore for 11 lakhs in 2007.Now, I have an offer of Rs 21 lakhs for the flat. Is the difference amount taxable? If yes then what would be the taxes I would have to pay? I wouldn't be willing to sell it if the taxes are too high. Please advice me as soon as possible, thanks.
I bought a flat in Coimbatore for 11 lakhs in 2007.Now, I have an offer of Rs 21 lakhs for the flat. Is the difference amount taxable? If yes then what would be the taxes I would have to pay? I wouldn't be willing to sell it if the taxes are too high. Please advice me as soon as possible, thanks.
Answered on November 08, 2017
Tax liability will arise on capital gains arising out of difference between sale consideration and purchase consideration. The said gains will be considered as long term capital gains or short term capital gains based on the period of holding of the property. If the property is held by you for a period more than 24 months than the same will be long term else short term. Assuming that the sale w...
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Legal
#flat#construction#payment#paid#builder
We are planning to buy a flat that is under construction. The seller has completed the payment till 80% of the value and the other 20% is to be paid by the builder whenever it is due. The seller is an NRI and he has already furnished the power or attorney for this project. My queries is that Can the builder claim the 20% as this flat is being transferred (the amount is not due yet)? Also, what would be the taxes to be considered as the owner is an NRI, will I also have to deduct TDS?
We are planning to buy a flat that is under construction. The seller has completed the payment till 80% of the value and the other 20% is to be paid by the builder whenever it is due. The seller is an NRI and he has already furnished the power or attorney for this project. My queries is that Can the builder claim the 20% as this flat is being transferred (the amount is not due yet)? Also, what would be the taxes to be considered as the owner is an NRI, will I also have to deduct TDS?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
Since there is balance amount to be paid under the agreement with the Builder, the NOC from the Builder will be required for concluding the sale. However, the Builder cannot demand the balance 20% amount if it is not due, merely because the buyer desires to sell the flat.
Taxes & Duties
#agreement#registered#taxes#transactions
I sold my old house for 19 lakhs for which the sale agreement was done in April 2012 and registered in September 2012. In October 2012, I bought a new house for 25 lakhs. Do I have to pay taxes on any of these transactions?
I sold my old house for 19 lakhs for which the sale agreement was done in April 2012 and registered in September 2012. In October 2012, I bought a new house for 25 lakhs. Do I have to pay taxes on any of these transactions?
Answered on November 08, 2017
It seems that your case very well fits within the provisions of section 54 of Income Tax Act i.e selling one residential property and buying another residential property within the time limit specified under section 54 of the Income Tax Act. Thus there will be no capital gain tax liability and you need not pay any taxes. Further the new residential property so purchased should be held by you su...
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Legal
#land#layout#society#owner#paid
I had bought a land in 2003 in a layout that was to be developed by a Co-op housing society. Recently, I received a notice from the original owner of this land and it stated that he still owned the land and has also built walls around the land. I have all the papers stating that this land is mine, like the khata, sale deed and I have also paid all the relevant taxes till date. The society says that all the issues need to be sorted with the landowner. What can I do in this case?
I had bought a land in 2003 in a layout that was to be developed by a Co-op housing society. Recently, I received a notice from the original owner of this land and it stated that he still owned the land and has also built walls around the land. I have all the papers stating that this land is mine, like the khata, sale deed and I have also paid all the relevant taxes till date. The society says that all the issues need to be sorted with the landowner. What can I do in this case?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
You would have to file a suit against the land owner and also join the society as a party to such suit and seek reliefs on the basis of your title to the land in question. In such suit, you can also ask for reliefs relating to possession of the land etc.
Society Matters
#gst#taxes#maintenance#society
How is the introduction of GST going to affect my maintenance charges?
How is the introduction of GST going to affect my maintenance charges?
Answered on November 08, 2017
We would suggest you to check this detailed post here: How will GST affect Homeowners and Housing Societies?
Taxes & Duties
#flat#save#taxes#consideration#loan
I had one flat which I sold and to save taxes, I purchased another flat partially from the sales consideration received and partially by taking loan. Now, if I sell this flat within period of 3 years of purchase then on what amount am I liable to pay taxes?
I had one flat which I sold and to save taxes, I purchased another flat partially from the sales consideration received and partially by taking loan. Now, if I sell this flat within period of 3 years of purchase then on what amount am I liable to pay taxes?
Answered on November 08, 2017
In order to save tax on capital gains arising out of sale of residential flat, expemtion can be claimed under section 54 of Income Tax Act i.e selling of one residential property and buying another residential property within the time limit specified under section 54 of the Income Tax Act. The new residential property so purchased should be held by you for subsequent period of 3 years. In case ...
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