Do you have any personal income tax query?

Mihir Tanna, Associate Director, S K Patodia & Associates (external link), a chartered accountants firm that offers consultancy, audit and tax services, will answer your queries.

Please mail your queries at [email protected] with the subject line ‘Ask Mihir’ and Mr Tanna will answer your tax queries.

Cdr Ninan P Mathai IN (Retd): I found the AIS in the IT Portal very useful last year. I was looking for AIS for AY 2023 -2024 (FY 2022 -2023) recently. It was only giving AIS for the last year, not for this year.

Have I gone to any wrong page? Or has the IT Department not posted the AIS for this year?

Mihir Tanna: As per provisions of Income Tax, certain reporting entities are required to report specified transactions after the end of the financial year (on or before 31st May). So some of the details in AIS will appear once the reporting entity reports ‘reportable transactions’ in the prescribed form.

Rajesh: I am a NRI and recently sold my apartment in Bangalore and have few questions on computation of LTCG tax.

1. To calculate ‘cost of acquisition” should I include stamp duty which I had paid?

2. I had to travel to India to complete the sale paperwork and can I deduct this as expense incurred exclusively for transfer?

3. Is the entire amount (less than 50L) invested in 54EC eligible for deduction?

Mihir Tanna: With reference to the query of stamp duty, yes, it can form part of the cost of acquisition. However, you must be aware that stamp duty paid at the time of purchase is allowed as deduction u/s 80C. Thus, an argument can be raised that if it is added to the cost of acquisition, it will result in double deduction.

With reference  to travel expenses, in my view you should not claim said expenses as Expenditure incurred are not wholly and exclusively in connection with transfer of capital asset.

With reference to investment in bonds specified in Sec 54EC, NRIs are not eligible to invest in certain specified government bonds.

Jophy John: If I transfer a part of my deposits to my children’s accounts (above 18) whether as gift or lending…

1) Will the receipt of such amount be taxable for them?

2) Will they be able to enjoy tax free income/ maturity on the interest thus earned till their respective limits?

Mihir Tanna: Gift given to a child is not an Income in the hands of the recipient (child). Amount received as a loan is also not an Income.

With reference to income, as per my knowledge, you can not transfer fixed deposits in bank records. Thus, income will continue to be taxed in your hand as the legal owner of deposits for taxation purposes.

Read more of Mihir Tanna’s responses here.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers’ requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.

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