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Shriya

Category : INCOME S..,

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December 20, 2018 6:00 pm

Hello Sir,

One more question - The base year to calculate inflation index is shifted from 1981 to 2001.
So if any properties that were acquired before 2001 has to be sold now, we have to consider the 'Fair Market Value' in 2001 and calculate the adjusted acquisition price.

My question is - How can we ...

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Amlan Dutta

The same methods which were used to determine the fair value when the base value was 1981 is to be used even now when the base value has shifted to 2001 ......According to the Income-tax Act, 1961, Fair market value shall be the higher of

—cost of acquisition of the property, or
—the price that the property shall ordinarily sell for if sold in the open market. There is no definite rule to calculate FMV of a property. However the one that department shall accept when it is done by a registered valuer It is advisable to get the valuation of the property done from the registered valuer.
Government-approved valuers follow a standard process for the valuation and provide a detailed report. In addition to other parameters “to derive at the FMV of a property, a valuer also considers area and dimensions of the property, is it freehold or leasehold, is there any restrictive covenant in regard to use of such property, insurance of the land and property, if the land falls under any development plan of the government,

A valuer needs to be registered under section 34AB of Wealth Tax Act, 1957, to act as a recognized valuer of income tax department. Each valuer is provided with a license from the department to work as a valuer.. In case and AO raises any doubt over the report it is valuer responsibility to reply, and if needed , the valuer can even visit the AO for clarification on the report

An assessee should keep the valuation report along with other documents related to capital gains, for at least 8 years after the relevant assessment year.

(Just for knowledge - The technique most widely used to estimate FMV is to look at the sale instances of similar properties in the same neighborhood.
One may decide to use circle rates, but then it is not available for all cities
To determine FMV, you can also consider real estate indices for extrapolation , such as the National Housing Bank’s (NHB’s) Residex, and two indices of the Reserve Bank of India (RBI)—Housing Price Index (HPI) and Residential Property Price Index (RPPI).

But again, the utility of these indices is limited. The problem is that most of them are new and do not provide price trends before 2001. )

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Amlan Dutta

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December 20, 2018

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sagar patel

Category : Home loa..,

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December 20, 2018 12:46 pm

Dear Sir,
i have purchase house on my wife name and loan sanction on my name so who is take tax benefit ?

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Amlan Dutta

In the present situation , neither you nor your wife can...Both transfer of property act and Income tax act has to be studied in conjunction to answer this ...Though you are paying for the property and are the deemed owner,it doesn't translate to ownership because the property is not registered on your name ....and unless you area owner , you can claim no benefit under section 24(b) or section 80 C ...i am really surprised on how the bank has given you loan ( no bank does ) ......The house registration and the loan document should be in the same persons name who is the registered owner/co owner .........so take steps to add yourself as co owner to the property to get the tax benefits ........

There are two ways to do this.........
1.) If the property is still under construction ,then you can take up with builder to add your name on the sale deed so that the registration and the stamp duty of the sale deed with your name present as well incur no further charges . ( if property ready to move in and sale deed not registered , this can still work).
2.) If sale deed already registered, executing a gift deed duly registered with the sub registrar of the jurisdiction on a stamp paper (note that the stamp duty and registration charges have to be paid in proportion ...stamp duty is typically 2% of the value of the property along with 1 % registration charge )......In this particular case, i will not advise sale deed . Once you are added as a co owner legally i.e through property registration in your name (and not in deemed manner) ,you will only then be able to claim loan benefit.

(Some tax consultants are of the view that joint reading of section section 24(b) for home loan interest deduction benefit , 64(1) for clubbing of income and relevant sections for co-ownership under the IT act shall allow you the benefit ...i don't however agree to the view after understanding the departments position after studying practical cases in a few scrutiny assessment proceedings)

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Amlan Dutta

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KEDAR MAURYA

Category : Selectio..,

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December 20, 2018 11:38 am

Hello sir
My friend is a pandit ji and he earn income from pooja and dakshina in marriage , he asked me to advice him to file itr so which itr he should filled, and where he show his income. His annual income is approx 3 lakh.

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Amlan Dutta

Either it can be offered as income from other sources or profession ....If other sources, then one can file ITR 1 and if one wants to offer income from profession , then he has to file ITR 3 .....I will advise to file ITR 1 and show it as income from other sources...

December 20, 2018

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Aurottam

Category : Section ..,

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December 20, 2018 1:55 am

I had filed my Income tax return for AY 2018-19 on 27.8.2018.Thereafter I had revised my return on 24.10.2018 under section 139(5).I had e-verified the revised return.CPC Bengaluru has evaluated my revised return treating it as Original return and imposed a fine of Rs. 5000 under section 234F.Is the...

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Amlan Dutta

No, late fee under section 234F is not applicable to revised return. It is only applicable to the original return. The late fee under 234 F should not be applied if the original return is filed within due date...you should immediately meet your assessing officer and discuss....unfortunately for this...

December 20, 2018

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