Tax Filing Guidance

[tradermodified]

actually its simple.

lets say you inherit something today. Since there is no inheritance tax, you are not liable to pay anything today.

Now, let's say a year down the line, you dispose of this inherited property. If the disposal price is higher than the indexed cost of the inherited property, the difference is taxable in your hands.

A query
What price has to be considered for indexation purpose, for such inherited property.
And secondly, if I inherit a part of the property and want to sell, then.

Thanks

 

[tradermodified]

What exemptions/rebates are available in new tax regime, for Income from House Property.
(like 30% deduction, housing loan interest, insurance, property tax etc etc that were available in old tax regime.)

Thanks

 

[timepass]

There is no tax on inheritance. However, there is a tax liability as and when you dispose of the property. Whether a tax is payable or not will depend on the indexed cost of the property and the selling price. it could be a case that no tax is payable because the indexed cost is higher or equal to the sale price.

A lot of people assume there is no taxability. But that is not correct.

A query
What price has to be considered for indexation purpose, for such inherited property.
And secondly, if I inherit a part of the property and want to sell, then.

Thanks

I think the exact index would be available with the municipality.

It should be your share of (circle rate at the time of sale - circle rate at the time of inheritance - inflation adjustment (indexation)) and taxed as per your tax slab

 

[canikhil]

A query
What price has to be considered for indexation purpose, for such inherited property.
And secondly, if I inherit a part of the property and want to sell, then.

Thanks

Depends on the age of the property (ie when it was purchased by the original owner before it was passed on as inheritance).

If it was original bought after 1 April 2001, then the fair value of the property as at 1 April 2001 needs to be established by a certified property valuer and that value needs to be indexed as per Cost Inflation Index provided by the Income tax department. For FY 2023-24 the index is 348.

However, if the property was bought after 1 April 2001, the actual cost needs to be indexed.

 

[timepass]

For FY 2023-24 the index is 348.

what does this value mean ? 348% of 1-1-2001 circle rate ?

 

[canikhil]

What exemptions/rebates are available in new tax regime, for Income from House Property.
(like 30% deduction, housing loan interest, insurance, property tax etc etc that were available in old tax regime.)

Thanks

there is no change except for the two items below:
1. adjustment of loss from income of house property against any other head of income is restricted to Rs 2 lakhs;

2. Interest paid on loan cannot be added to the cost of house for the purpose of capital gains computation.

 

[bck2ftr]

I have capital gain from equities and loss in F&O.
Can I set off F&O loss against Equity capital gain ?

 

[godfather]

1. When to have books of account Maintained and when not?
2. To carry forward losses do I need to have books of account?

 

[canikhil]

1. If you are not covered under presumptive taxation - 44AD, 44ADA, 44AE etc, then section 44AA prescribes when to maintain books ie If your income exceeds Rs 1.2 Lakhs or turnover exceeds Rs 10 Lakhs in any of the past three years.

2, if you intend to carry forward losses, maintenance of books of accounts is required.

 

[godfather]

1. If you are not covered under presumptive taxation - 44AD, 44ADA, 44AE etc, then section 44AA prescribes when to maintain books ie If your income exceeds Rs 1.2 Lakhs or turnover exceeds Rs 10 Lakhs in any of the past three years.

2, if you intend to carry forward losses, maintenance of books of accounts is required.

If you come under point no 1, means no need for books of account but in that case, do u need to have books of account to carry the forward loss? Income above 6% of turnover