I offered my home in Mohali, Punjab, for Rs 32 lakh in July 2015 and bought a flat at Kharar for a similar worth. The registry of the flat was accomplished in March 2017. I wish to switch the flat to my son’s identify. When on the earliest I can achieve this (with out paying any service tax or any registry quantity as in Punjab we now have to pay only a nominal price to switch property in blood relation)? Will I be liable to pay any capital achieve tax? — Surinder Singh
You’ll be able to switch the flat to your son instantly by way of a present deed with none tax consequence. The provisions of Part 45 of the Act (referring to capital achieve) usually are not relevant to a present. You’ll be able to, subsequently, execute a present deed in favour of your son and get it registered with the Sub-Registrar of Mohali by paying the prescribed prices. Such a present wouldn’t be taxable both in your or your son’s arms.
I, a senior citizen, have bought an insurance coverage coverage for Rs 7,22,892 underneath the Pradhan Mantri Vaya Vandna Yojana from the Life Insurance coverage Company of India. The coverage is legitimate for 10 years and Rs 60,000 as pension shall be paid to me yearly. Is the pension taxable? — Romesh Chandra Malhotra
The Revenue Tax Act, 1961, doesn’t include any provision referring to exemption in respect of the pension acquired from the Insurance coverage Company of India underneath the scheme talked about by you within the question. Accordingly, the pension of Rs 60,000 acquired yearly could be taxable.
My relative a Punjab Authorities worker. His division is granting conveyance allowance of Rs 5,400 every year and medical allowance of Rs 6,000 every year, which had been exempted from tax in FY2017-18. On February 2, 2018, the Finance Minister had introduced that for FY 2018-19, the usual deduction of Rs 40,000 for salaried class workers and pensioners and exemption of conveyance/medical allowance has been abolished. Is Rs 11,400 a part of whole revenue for FY 2018-19?
For FY 2017-18, the Revenue Tax Division whereas issuing a ‘refund’ has given Rs 160 as curiosity on Rs 7,800. Will Rs 160 be thought-about revenue from different sources whereas computing taxable revenue for FY 2018-19? — Ramesh Kumar Sharma
Your queries are replied hereunder:-
(a) The conveyance allowance and medical allowance acquired by your relative wouldn’t be exempt from tax in view of the usual deduction of Rs 40,000 allowable to him for the monetary yr 2018-19.
(b) The quantity of curiosity acquired from division shall be taxable on a receipt foundation. As he quantity has been acquired by you within the monetary yr 2018-19, it is going to be taxable within the evaluation yr 2019-2020.