#Section 54F

[financetalkies]

Section 54F

The gains arising out of long term investments are known as Long Term Capital Gains. There are few ways we can save our tax on Long Term Capital Gains. One of the most famous of the ways of savings tax available in Income Tax Act is SECTION 54F. Here are the details of the Tax Exemption under Section 54F: Under this section, whole consideration received on sale of capital assets other than…

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Latest Amendment on Long Term Capital Gain Taxability from AY24-25| Watch before filing ITR AY24-25

[aakashmalhotra]

Section 54F of Income Tax Act – Exemption of Capital Gains

The Mumbai Bench of the Income-tax Appellate Tribunal has recently clarified an important aspect of tax law relating to capital gains. Specifically, the tribunal ruled that profits derived from the sale of a long-term capital asset, which may typically be classified as short-term capital gains under the stipulations of section 50 of the Income-tax Act, 1961 (ITA), are still eligible for certain tax exemptions when claimed under section 54F of the ITA. 

Furthermore, the tribunal emphasized that in situations where an asset has been depreciated—meaning depreciation deductions were claimed in prior years—the calculation of income upon the sale of that asset must take into account the provisions outlined in section 41 of the ITA. This ruling highlights the need for careful consideration of the tax implications when dealing with the sale of both long-term and depreciable assets, ensuring compliance with the relevant tax regulations.

The taxpayer is a driven individual who generates income through their successful garment manufacturing business and savvy investments that yield interest income. This unique combination of entrepreneurship and financial acumen positions them for sustained growth and financial stability.

What is Section 54F?

Section 54F of the Income Tax Act provides a framework for taxpayers to claim an exemption on capital gains arising from the sale of properties that are not residential houses. This provision is beneficial for individuals seeking to reinvest the proceeds from such sales while minimizing their tax liabilities. However, to qualify for this exemption, taxpayers must adhere to specific conditions outlined in the legislation. 

This exemption is subject to specific conditions, which are as follows:

The taxpayer is advised to reinvest the net proceeds from the sale of the old asset into the acquisition of a new residential property. This approach not only optimizes financial resources but also aligns with prudent investment strategies.

The new residential property must meet the following requirements:

Purchased: either 1 year before or 2 years after the sale of asset Or 

Constructed: within 3 years of sale of old asset

For individuals seeking to claim a tax exemption under this section, it's important to note that they should not own more than one residential property at the time of sale, except for the property being purchased to claim the exemption.

The taxpayer should not buy another house within 2 years or build one within 3 years from the date of transfer.

If the above conditions are not met, then exempt the Capital Gains that are taxable in the year when another residential house is purchased or constructed.

Exemption under Section 54F  

Section 54F provides a tax exemption for capital gains resulting from the transfer of a long-term capital asset, excluding residential house properties, provided that the net sale proceeds are invested in a single residential house property in India within the stipulated time frame.

The exemption is available exclusively to individuals and Hindu Undivided Families (HUFs). 

To successfully claim an exemption under Section 54F, a taxpayer must purchase a new house within one year before or two years after the transfer of the old house. Additionally, the taxpayer can construct a new house within three years from the date of transfer.

If the taxpayer cannot use the money from the sale to buy or build a home by the time they file their tax return, they can deposit that money in a specific account to receive a tax exemption on capital gains. 

The funds deposited in the Capital Gains Account Scheme are required to be utilized within the designated time frame for the purpose of acquiring or constructing a residential property.

The exemption could be refused if the taxpayer possesses more than one residential property as of the date the original asset is transferred, excluding the house obtained within one year prior to the transfer date.

Conclusion 

Section 54F offers a good chance to save on taxes by reinvesting profits from selling an asset into residential property. To benefit from this, taxpayers need to follow specific deadlines, meet reinvestment rules, and adhere to ownership requirements. Planning carefully and following these rules are crucial to make the most of this section.

[cvr198]

Tax Benefits When Purchasing Commercial Property for Sale in Kokapet

Investing in commercial property for sale in Kokapet not only gives you access to a high-potential growth area but also offers several tax benefits. When buying Kokapet commercial space for sale, especially for business purposes, there are various tax deductions and advantages available under Indian tax laws, allowing investors to maximize returns. Below are the main tax benefits associated with owning office space for sale in Kokapet.

1. Depreciation Deductions

The Income Tax Act allows depreciation on commercial properties, which significantly reduces taxable income. For commercial property for sale in Kokapet, you can claim depreciation at 10% annually on the value of the building, offering an attractive reduction in taxable profits. Depreciation benefits are highly advantageous for owners seeking tax efficiency on their Kokapet commercial space for sale.

2. Interest on Loan for Commercial Property

If you’re financing the purchase of office space for sale in Kokapet through a commercial loan, the interest paid on the loan is deductible as a business expense. Unlike residential properties, there is no upper limit on the interest deduction for commercial properties, making it ideal for businesses to claim tax benefits on interest payments. This makes commercial property for sale in Kokapet a wise choice for long-term investment, especially in a fast-growing area like Kokapet.

3. Deduction on Property Taxes

Property taxes paid on Kokapet commercial space for sale can also be claimed as deductions under business expenses. These deductions lower the overall taxable income, providing additional tax savings on commercial investments. This makes the location’s advantages, like its connectivity to Gachibowli, HITEC City, and other key areas, more cost-effective for businesses.

4. Deduction on Maintenance and Operational Expenses

Investors in office space for sale in Kokapet can also claim deductions on maintenance, repairs, and utilities under business expenses. This includes costs for property management, repairs, and services like water, electricity, and cleaning. Kokapet's well-maintained commercial property for sale in Kokapet by Pooja Crafted Homes includes essential facilities such as 24/7 security, power backup, and parking, making maintenance both convenient and tax-deductible.

5. Capital Gains Exemption on Reinvestment

If you decide to sell Kokapet commercial space for sale and reinvest the profits into another property, Section 54F of the Income Tax Act allows for a capital gains exemption. Reinvesting the sale proceeds into another property can defer or reduce your capital gains tax, especially if invested in a property with high appreciation potential, like commercial property for sale in Kokapet.

Why Choose Kokapet for Commercial Office Space Investment

Kokapet offers a strategic location close to Hyderabad’s IT hubs, making office space for sale in Kokapet a lucrative investment for businesses seeking proximity to HITEC City and the Financial District. With amenities like a lake view, accessibility to Gachibowli and ORR, and green building certifications, Pooja Crafted Homes’ commercial property for sale in Kokapet provides both value and sustainability.

Conclusion

Investing in commercial property for sale in Kokapet provides not only a premium office space location but also significant tax advantages that enhance profitability. With Pooja Crafted Homes' commitment to quality in a high-growth area, office space for sale in Kokapet is ideal for investors seeking both growth potential and tax benefits.

[chandravamsi]

Tax Benefits When Purchasing Commercial Office Space Commercial Property for Sale in Kokapet

Investing in commercial property for sale in Kokapet offers not just promising growth potential but also various tax benefits. Whether you are planning to buy office space for sale in Kokapet for your business or as an investment, understanding the available tax benefits can help you maximize returns. Kokapet commercial space for sale offers investors the dual advantage of financial savings and excellent market potential in Hyderabad’s growing commercial hub.

Tax Benefits for Commercial Property Buyers

Depreciation Deduction One of the biggest tax advantages of office space for sale in Kokapet is the depreciation deduction. The Income Tax Act allows owners of commercial properties to claim depreciation on the building’s value, helping reduce taxable income. This applies to commercial property for sale in Kokapet as soon as it becomes operational.

Tax Deduction on Loan Interest If you purchase Kokapet commercial space for sale through a loan, the interest paid on the loan qualifies for tax deduction under Section 24(b) of the Income Tax Act. This can significantly reduce the financial burden, especially if you are acquiring premium office space for sale in Kokapet.

Maintenance and Repairs Deduction The expenses incurred for maintaining or repairing commercial property for sale in Kokapet are tax-deductible. This deduction encourages investors to keep the property in good condition, ensuring that their Kokapet commercial space for sale maintains its value over time.

Municipal Taxes Deduction Owners of office space for sale in Kokapet are also entitled to deductions for municipal taxes. As long as these taxes are paid during the same financial year, they can be claimed as a deduction from the rental income generated from the commercial property for sale in Kokapet.

Capital Gains Tax Benefits If you decide to sell your Kokapet commercial space for sale after holding it for more than 24 months, it is classified as a long-term capital asset. You can benefit from a lower long-term capital gains tax rate or reinvest the proceeds in other properties to avail exemptions under Section 54F. This ensures you can plan your investments in office space for sale in Kokapet efficiently.

Why Kokapet Is the Ideal Location for Commercial Investment

Investing in commercial property for sale in Kokapet comes with strategic benefits. Kokapet is one of Hyderabad’s fastest-growing commercial hubs, offering easy access to the IT hubs of Gachibowli, HITEC City, and Nanakramguda. With proximity to the Outer Ring Road (ORR), Kokapet commercial space for sale ensures smooth connectivity to all parts of the city, enhancing its attractiveness to businesses and investors alike.

Features of The Harvest Premium Commercial Space in Kokapet

Grade A commercial office space with advanced infrastructure.

A saleable area of 1.6 million sq. ft., spread over 3.5 acres.

Kokapet commercial space for sale with stunning lake views and green design certified by IGBC.

29 floors with 4 basements and podium levels, offering both reserved and visitor parking.

Close to major residential areas like Narsingi, Gachibowli, and Tellapur.

Conclusion

Investing in office space for sale in Kokapet not only provides access to a thriving commercial market but also offers significant tax benefits. From depreciation deductions to savings on loan interest, Kokapet commercial space for sale presents a sound financial decision. With projects like The Harvest offering premium commercial property for sale in Kokapet, now is the perfect time to secure a space that will yield both rental income and long-term appreciation.

[lmpsblog]

Tax Benefits of Investing in Commercial Property for Sale in Kokapet Maximize Your Returns

Investing in commercial property for sale in Kokapet offers a unique opportunity to secure a premium asset in one of Hyderabad’s fastest-growing commercial hubs. As more investors explore kokapet commercial space for sale for high returns, understanding the tax benefits of owning office space for sale in Kokapet can further maximize profits. These benefits not only improve cash flow but also contribute to the long-term value of your investment.

Tax Deduction on Interest Payment for Commercial Property for Sale in Kokapet

One of the key tax benefits when purchasing commercial property for sale in Kokapet is the deduction on interest payments. If you finance kokapet commercial space for sale through a loan, the interest paid can be deducted under Section 24(b) of the Income Tax Act. This reduces taxable income and makes managing finances for office space for sale in Kokapet more manageable, especially for long-term investors looking to maximize tax efficiency.

Depreciation Benefits on Kokapet Commercial Space for Sale

Investing in kokapet commercial space for sale offers depreciation benefits, allowing you to claim tax deductions based on the annual depreciation of the property. The Income Tax Act permits a 10% depreciation rate on commercial property for sale in Kokapet, which directly reduces your taxable income. With consistent tax savings, depreciation enhances the value proposition of office space for sale in Kokapet, especially for those planning long-term investments.

Section 80C and Section 80EEA Deductions for Office Space for Sale in Kokapet

For commercial property for sale in Kokapet, investors may leverage deductions under Section 80C for principal repayment and potentially under Section 80EEA for additional interest deductions. This is especially beneficial when financing kokapet commercial space for sale, as it allows for tax-efficient loan management. Leveraging these deductions can further enhance the value of office space for sale in Kokapet, making it a strategic investment in Hyderabad’s commercial landscape.

Capital Gains Tax Exemptions on Kokapet Commercial Space for Sale

Selling office space for sale in Kokapet after three years qualifies for long-term capital gains tax rates, reducing tax liability. Additionally, reinvesting capital gains into another commercial property for sale in Kokapet may qualify for Section 54F exemptions, which protect gains from taxes. This exemption enhances returns, making kokapet commercial space for sale a tax-smart investment with excellent profit potential.

Operational Expense Deduction for Commercial Property for Sale in Kokapet

Expenses such as maintenance, repairs, and property management for kokapet commercial space for sale are deductible, lowering taxable income. This deduction preserves cash flow and supports long-term growth when investing in office space for sale in Kokapet. With Kokapet’s strategic location, these operational deductions add to the tax benefits, enhancing the appeal of commercial property for sale in Kokapet for investors aiming for sustained returns.

Why Choose Commercial Property for Sale in Kokapet

With kokapet commercial space for sale offering proximity to Hyderabad’s Financial District, IT hubs, and the Outer Ring Road, the area has transformed into a major business destination. The growing demand for office space for sale in Kokapet highlights its appeal as an investment. For those seeking tax benefits alongside real estate gains, commercial property for sale in Kokapet offers both, making it an ideal option for forward-looking investors.

[northpolemanagementllp]

Understanding Capital Gains Tax: What You Need to Know 📈💼

Capital Gains Tax (CGT) is a crucial aspect of financial planning and investment management. Here’s a comprehensive guide to help you navigate through it:

What are Capital Gains?

Capital gains arise from the sale of capital assets such as stocks, bonds, real estate, and other investments. The profit earned from this sale is subject to capital gains tax.

Types of Capital Gains

Short-Term Capital Gains (STCG)

Gains from the sale of assets held for less than 36 months (24 months for immovable property).

Taxed at the individual's income tax slab rate.

Long-Term Capital Gains (LTCG)

Gains from the sale of assets held for more than 36 months (24 months for immovable property).

Special tax rates: 20% with indexation benefits for most assets.

Key Points to Consider

Indexation Benefit

Adjusts the purchase price of an asset for inflation.

Reduces taxable gains for long-term assets, effectively lowering the tax burden.

Exemptions and Deductions

Section 54: Exemption on the sale of residential property if proceeds are reinvested in another residential property.

Section 54EC: Exemption by investing in specified bonds (e.g., NHAI, REC) within 6 months of asset sale.

Section 54F: Exemption on the sale of any long-term asset other than residential property if proceeds are used to buy residential property.

Set-Off and Carry Forward

Set-Off: Short-term capital losses can be set off against both short-term and long-term capital gains.

Carry Forward: Unutilized losses can be carried forward for 8 years and set off against future gains.

Tax Filing

Ensure accurate reporting of capital gains in your income tax return.

Maintain proper documentation of all transactions and related expenses.

Strategies to Minimize Capital Gains Tax

Utilize exemptions and deductions: Invest strategically to benefit from tax exemptions under sections 54, 54EC, and 54F.

Long-term investment: Holding assets for the long term can reduce your tax liability due to lower LTCG rates.

Harvesting losses: Use losses to offset gains and minimize overall tax liability.

Proper timing: Plan the timing of asset sales to optimize tax implications.

Conclusion

Understanding and managing capital gains tax is vital for effective financial planning. By leveraging available exemptions, deductions, and strategic planning, you can optimize your tax liabilities and enhance your investment returns.

Stay informed and consult with a tax professional to make the most of your investments and minimize your tax burden.

#CapitalGainsTax #TaxPlanning #FinancialPlanning #IncomeTax

[acerealty1]

TDS Contemplations In Property Sold By NRI

With regards to trading property, tax collection contemplations assume a basic part. Both the purchaser and merchant face charge suggestions which should be stuck to according to the Annual Expense Act, 1961. On account of homegrown exchanges, these cycles are very direct. In any case, for a NRI selling a 2 BHK property in Thane, charge suggestions are unique, for the merchant as well as the purchaser too.

In this article, we investigate the TDS derivations on account of an Indian property sold by a NRI.

TDS (Duty Deducted at Source)

TDS is an expense gathering instrument by the Indian government to gather charges at the kind of revenue. With regards to property deals, TDS is deducted by the purchaser prior to making installment to the NRI dealer. It is relevant for both private and business properties.

Capital Increases Assessment for NRIs

An essential tax collection for NRIs selling property in India is the Capital Increases Duty. This can be long or short in view of the span of the property held. In the event that the property has been under the ownership of the merchant for quite some time or more, they will be charged long haul Capital Additions Expense at 20%, while under 2 years will be accused of momentary Capital Additions Duty according to the assessment section.

TDS Methodology

The course of TDS allowance in property deals including NRIs includes a few key stages:

Getting TAN: While buying a property from a NRI, the purchaser should get a TAN number to deduct TDS. In the event that there are numerous purchasers, every purchaser needs to apply for a TAN number. This necessity is just for the purchaser and not the merchant.

Recording Structures 15CA and 15CB: Prior to dispatching the deal continues abroad, the NRI merchant should acquire Structure 15CA from the Annual Assessment Office's internet based gateway. Moreover, they need to get Structure 15CB, a declaration from a Sanctioned Bookkeeper, affirming the material duty rate and consistence with Indian expense regulations.

TDS Derivation and Installment: The purchaser is answerable for deducting TDS at the hour of making installment to the NRI dealer. The deducted sum should be kept with the public authority inside the permitted time period.

Charge Exclusions on TDS for NRIs

NRIs can profit exceptions and help under specific arrangements of the Annual Duty Act to decrease their assessment obligation:

Segment 54: Exclusion on long haul capital additions in the event that the returns are reinvested in another private property like a 2 BHK property in Thane inside the predefined period.

Segment 54EC: Exclusion on long haul capital additions assuming that the returns are put resources into indicated bonds in somewhere around a half year of the property deal.

Segment 54F: Exception on long haul capital additions on the off chance that the returns are put resources into a private property like luxury homes in Thane other than the one sold.

End

TDS in the offer of property by a NRI requires cautious thought from both the purchaser and the vender. Complying with all guidelines is basic to keep away from any legitimate problem later on. Counseling a duty expert can assist with guaranteeing you get greatest exclusions while remaining consistent at each step of the deal.

[thetaxdetectives]

GUIDE TO TAX PLANNING UNDER THE INCOME TAX ACT, 1961

Introduction:

Tax planning is an essential aspect of financial management that involves structuring one's financial affairs in a way that minimizes tax liability while remaining compliant with the prevailing tax laws. In India, the Income Tax Act of 1961 governs the taxation of income and provides a framework for tax planning. This comprehensive guide aims to explore various aspects of tax planning under the Income Tax Act, 1961, including its importance, strategies, and legal considerations.

I. Understanding the Income Tax Act, 1961:

The Income Tax Act, 1961, is the principal legislation in India that governs the taxation of income. Enacted to replace the earlier Income Tax Act of 1922, the current law provides a comprehensive and modern framework for the assessment and taxation of various forms of income. It covers individuals, Hindu Undivided Families (HUFs), companies, and other entities, outlining the rules and regulations that determine the computation of taxable income and the corresponding tax liabilities.

II. Importance of Tax Planning:

A. Minimization of Tax Liability:

One of the primary objectives of tax planning is to minimize the tax liability legally. This involves identifying and leveraging various exemptions, deductions, and credits available under the Income Tax Act. By optimizing financial decisions, individuals and businesses can significantly reduce the amount of tax payable.

B. Efficient Resource Allocation:

Tax planning encourages efficient resource allocation by guiding individuals and businesses to structure their financial activities in a manner that maximizes returns and minimizes tax consequences. This could involve choosing tax-efficient investment options, timing capital gains realization, and adopting other strategies to enhance overall financial efficiency.

C. Goal Alignment:

Tax planning allows individuals and businesses to align their financial goals with tax-saving strategies. Whether it's saving for retirement, purchasing a home, or funding education, effective tax planning can ensure that financial goals are achieved with minimal tax implications.

III. Key Components of Tax Planning:

A. Income Classification:

Understanding the different types of income under the Income Tax Act is crucial for effective tax planning. Income is broadly categorized into five heads – salary, house property, business or profession, capital gains, and other sources. Each category has its own set of rules and exemptions that can be utilized for tax planning.

B. Exemptions and Deductions:

The Income Tax Act provides for various exemptions and deductions that can be claimed to reduce taxable income. Common exemptions include those for house rent allowance (HRA), agricultural income, and income from specified investments. Deductions, on the other hand, cover expenses like medical insurance premiums, contributions to provident funds, and education loan interest.

C. Tax-Efficient Investments:

Investing in tax-efficient instruments is a key aspect of tax planning. This includes understanding the tax implications of different investment options such as Equity-Linked Saving Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), and tax-saving fixed deposits. Evaluating the risk-return profile of these investments helps in making informed decisions based on individual financial goals.

D. Capital Gains Planning:

Capital gains tax is applicable on the profit earned from the sale of assets like stocks, real estate, and mutual funds. Tax planning involves optimizing the timing of capital gains realization, utilizing exemptions available under Sections 54 and 54F for real estate transactions, and exploring options like tax-saving bonds.

E. Retirement Planning:

Planning for retirement is an integral part of tax planning. Contributions to retirement-oriented schemes like the Employees' Provident Fund (EPF) and the National Pension System (NPS) not only provide financial security post-retirement but also offer tax benefits under Sections 80C and 80CCD.

IV. Strategies for Effective Tax Planning:

A. Long-Term vs. Short-Term Planning:

Tax planning can be categorized as long-term and short-term. Long-term planning involves structuring investments and financial decisions with a view to achieving specific goals over an extended period. Short-term planning, on the other hand, focuses on immediate tax-saving opportunities and adjustments.

B. Systematic Investment Planning (SIP):

SIPs in mutual funds provide a disciplined approach to tax planning. By investing small amounts regularly, individuals can benefit from the power of compounding and mitigate the impact of market volatility. SIPs also facilitate rupee-cost averaging, reducing the risk associated with market fluctuations.

C. Tax Planning for Business Entities:

For businesses, tax planning involves optimizing the structure of business operations to minimize tax liability. This includes choosing the appropriate legal form (sole proprietorship, partnership, company), claiming deductions for business expenses, and leveraging incentives provided for specific industries.

D. Inheritance and Succession Planning:

Effective tax planning extends to inheritance and succession. Understanding the tax implications of bequests, gifts, and inheritance ensures that assets are transferred seamlessly while minimizing the tax burden on beneficiaries.

E. International Tax Planning:

Globalization has increased the need for international tax planning, especially for individuals and businesses engaged in cross-border activities. Considerations such as Double Taxation Avoidance Agreements (DTAA), Transfer Pricing Regulations, and Foreign Tax Credits are essential in optimizing tax liabilities for international transactions.

V. Legal and Ethical Considerations:

While tax planning aims to reduce tax liability, it is imperative to adhere to legal and ethical standards. Engaging in tax evasion or adopting aggressive tax avoidance measures can lead to legal consequences, including penalties and prosecution. It is crucial to stay informed about changes in tax laws and regulations to ensure compliance.

VI. Recent Developments and Amendments:

The Income Tax Act is subject to periodic amendments and updates. Staying abreast of recent developments is essential for effective tax planning. Recent amendments, such as changes in tax slabs, modifications in deductions, and updates in reporting requirements, can impact tax planning strategies.

VII. Conclusion:

Tax planning under the Income Tax Act, 1961, is a dynamic and multifaceted process that requires a comprehensive understanding of tax laws, financial instruments, and individual goals. By adopting a strategic approach, individuals and businesses can optimize their tax liabilities, achieve financial objectives, and contribute to overall economic development. Regular review and adaptation to changes in tax laws are essential for sustained success in tax planning efforts.

Note: This article is a general guide and should not be considered as professional advice. Individuals and businesses are encouraged to consult with tax professionals for personalized guidance based on their specific circumstances.

[knowledgematters]

Quick Tax Wins: Top Tips for Savings

In India, tax-saving options are available under various sections of the Income Tax Act, providing opportunities for individuals and Hindu Undivided Families (HUFs) to reduce their tax liability. Here are some key points about tax-saving in India:

Section 80C Tax-Saving Options

Investments and expenses under Section 80C allow for deductions of up to Rs. 1.5 lakh in a financial year. Some popular options include:

5-Year Bank Fixed Deposit

Public Provident Fund (PPF)

National Savings Certificate

National Pension System (NPS)

ELSS Funds

Unit Linked Insurance Plan (ULIP)

Sukanya Samriddhi Yojana (SSY)

Senior Citizen Saving Scheme (SCSS) 

Additional Tax-Saving Provisions

Apart from Section 80C, other provisions allow deductions:

Section 80D: for medical insurance premium

Section 80EE: for interest payment of home loan

Section 24: for interest deduction on housing loan

Section 80EEB: for interest deduction on vehicle loan for electric vehicles

Section 80G: for donations to charitable institutions

Section 80GG: for rent deduction

Section 80TTA: for interest received in a savings bank account

Section 54, 54F: for capital gain exemption 

Tax-Saving Investments in India

Tax-saving investment options to consider:

ULIP and life insurance plans

NPS tier-I account

PPF

Senior Citizen Saving Scheme, among others 

Maximizing Tax Savings

Starting tax-saving investments early in the financial year can help spread the investments and make informed decisions. It's crucial to consider the various tax-saving expenses and investments available under Section 80C to exhaust the limit effectively.

Tax-Exempt Investments

Investments such as Equity Linked Saving Scheme (ELSS) and Public Provident Fund (PPF) offer tax exemptions, making them attractive options for tax-saving 

[bagariaandcompany]

The Simran Bagga Vs. ACIT decision from the ITAT Delhi establishes a precedent by confirming that income tax deductions under section 54F are allowable even in cases where the spouse's name is registered on the new property.

Purposive construction, which liberally interprets tax legislation in favor of taxpayers, is in line with the ruling.

[tdssections]

Budget 2023 (Income Tax Updates)

1. Tax structure has changed in the new tax system, no tax until income of Rs. 7,00,000.00

No changes in the old tax regimeThe Tax regime has been constructed in a manner that in most situations, it is preferential to adhere to the new tax regime provided your Total Income exceeds the amount of. 7,00,000/$ and less than 15,00,000or less. But this is only an opinion, and could be different based on the nature of the facts.

2. Standard Deductions from salary income for the amount of Rs. 50,000.00 will be now accessible in the new tax The regime is also 3. The highest surcharge has been reduced from 37 percent to 25% under the new tax rules. Thus, the tax rate 39%. 4. The maximum amount of leave that can be encashed at retirement for non-government employed employees is raised to the amount of Rs. 25,00,000.00 5. A New Tax system will become the standard tax policy 6. Deduction of Expenses in MSME payments MSME to be permitted only after the payment is made. The relevant modifications in Section 43B are suggested This is an Alarming Amendment for all businesses. Let's look at this using an example:

There is a company that goes by the name XYZ. The financial information of the company is as follows: Earnings and losses for the year Gross Revenue 1,00,00,000.00 Total expenses: 80,00,000.00 Net Profit: 20,00,000.00

Bilanz Sheets Figures All Customer Balances: 30,00,000.00 All vendor (Other that MSME) Total Vendor (other than MSME) Balances 12,00,000.00 Total Vendor (MSME) Balance: 10,00,000.00

As under the amendments that was included in the budget, in the event that the business make the Payment to MSME Vendors prior to or on the day of date of filing the an income tax return, or the the due date for filing of the income tax return of income tax return, the sum (payable by MSME Vendors) will be of the The income of the company. In our example we'll assume that the MSME Vendors has been made until on the day of the file The return is in part made for 6,00,000.00

The total income will now be calculated in the following manner This is: Profit as Per Profit and Loss A/c : 20,00,000.00 In addition: MSME Balance : 4,00,000.00 (10,00,000 - 6,00,000) Final Profit : 24,00,000.- Thus, increasing the tax burden.

7. New Cooperatives that begin manufacturing operations until 31.03.2024 will enjoy the benefits of tax rate of 15%. 8. The deadline for incorporating companies to benefit from income tax has been extended until the 31st of December March 2024 9. C/f of Losses in the event changes in shareholdings in order to be 10 years instead of 7 years 10. The Cap Gain deduction is allowed Under U/s 54 and 54F be cap at 10 cr maximum 11. The maturity of insurance will be tax deductible when annual premiums are in over 5 lacs 12. TCS 5 percent on the remittance of medical treatments that exceeds 7 lacs 13. TCS 0.5 percent on remittances for education purposes that exceeds 7 lacs 14. TCS on remittances for other purposes will be 20%.

[truedatalove]

All you would like to know about Capital Gains Tax?

What is Capital Gains Tax?

When put in simpler terms, any gain or profit that comes from the trade of a ‘capital asset’ is a capital gain. The benefit or profit inherited falls under the category – income. Hence, it is fundamental to pay tax for the amount in the same year in which the transferal of the capital asset registration takes place. This transfer of tax is what we as capital gains tax that can be either short-term or long-term.

Capital gains apply to selling or buying property; Since this transfer only involves the transference of ownership and not selling of property, they do not implement inherited properties. Assets that come as gifts due to inheritance or will – does not fall under Income Tax Act. But, if the inheritor chooses to sell it, capital gains tax will be applicable. House property, vehicles, land, patents, buildings, machinery, leasehold rights, jewelry, among others, come under the examples of capital assets.

Types of Capital Gain

Indian governments define assets into short or long term based on the Income-tax Act, 1961. Depending on the period for owning an asset, profits on investment can be classified into;

Short term capital gain

Short-term capital gains tax refers to the tax imposed on gains made from the selling of an asset held for a government-set short time. The short time varies for various things. For instance, for a fixed property like house property, building, and land, the short term period was changed to 24 months or less from 36 months or less.

How to calculate short term capital gain

After considering the entire value of the asset, subtract the expenses acquired in association with the transferal. Moreover, deduct the price of improvement and acquisition expenses. The remaining amount comes under short-term capital gain, which will fall under STCG.

Assets that draw short term capital gains tax

If you hold following assets for 12 months or less, they come under short-term capital assets.

STCGT on shares: Shares or equity in a renowned company listed on BSE or NSE or any other approved stock exchange.

Zero-coupon bonds are both valued and unvalued.

Units of UTI, even if not valued.

Securities such as bonds, govt securities, debentures, among others, are registered on the stock exchange in India.

Tax Rate of short term capital gains

After the categorization of assets as short term, an individual has to view the tax rates that fit. If securities transaction tax is applicable on a property, then the government would apply 15%* short-term capital gains tax. Furthermore, during taxation, when securities transaction tax is not applied, the government adds the SCTG to the income tax return. Accordingly, the taxpayer has to pay the amount as per the income tax slab.

Long term capital gain

The tax imposed on gains made from the selling of an asset held for a government-set long time is called long-term capital gains tax. The tax generated for assets such as share-oriented products or real estate comes under the category of long-term capital gain.

How to calculate long term capital gain?

Long term capital gain is applied at 20% for debt funds, real estate, and other assets after providing the taxpayers the advantage of indexation. Secondly, it is 10% for units of UTI/stocks/equity mutual funds/zero-coupon bonds/listed bonds.

Assets that draw long term capital gains tax

The definition of LTCGT differs for different types of products. For instance, it is two years for housing property, one year for units of UTI/zero-coupon bonds/equity mutual funds/listed debentures or govt securities/stocks, and three years for debt funding or any other assets.

Capital Gains Tax Exemptions

One can maintain Capital gains tax exemptions either partially or fully. For instance, if the buying cost is Rupees 80 lakhs and the selling cost is more than Rupees 1 crore (i.e. a profit of Rupees 20 lakhs). Additionally, a deposit of Rupees 50 lakhs is done, then as per the exemptions allowed by the Indian government, half the capital profits will go in the exemption. The government will apply the tax only on the other half.

Section 54:

If you use the selling price of a housing property to buy another housing property, then the capital profits on the sale will be under an exemption. However, there are always terms & conditions that have to be followed;

One must make the new purchase of the housing property either one year before trading the old possessions or in two years of the trade.

If the property is under construction, then the construction must complete within three years of the transfer period of the old possessions.

One cannot trade the newly procured assets further within three years of acquisition or production.

The newly procured capital should be within in India.

Section 54F:

If you are selling an asset such as agricultural land, valuable artifacts, jewelry within 10kms of a place, then you can use the benefit of section 54F. Section 54F rewards a reduction for the acquisition of real estate from the profits of the trade of any capital asset. Read on the following terms & conditions for section 54F;

One must make the new purchase of the housing property either one year before trading the old possessions or in two years of the trade.

If the property is under construction, then the construction must complete within three years of the transfer period of the old possessions.

One cannot trade the newly procured assets further within three years of acquisition or production.

The newly procured capital should be within in India.

The person should be viable of only one housing property on the transfer date.

The person should not purchase any other property within one year of the transference or built within three years of the transference.

As a part of the capital gains account scheme, the investor can transfer the profits before the scheduled date for registering returns. This step will be beneficial in availing of the benefits of the above-mentioned sections. These sections are useful even if a person has not bought a housing property; but, make sure to transfer or construct the property in the specified period.

Section 54EC:

The REC (Rural Electrification Corporation) and NHAI (National Highways Authority of India) issued the Capital Gains Bonds that are suitable for exemption from capital profits tax of up to Rupees 50 lakhs. These exemptions have a term-end of five years and offer a fixed profit rate that is currently 5.25%. The interest rate on all the capital gains bonds is taxable.

Strategies for Capital Gains Tax

One should always carry out taxation in a legitimate procedure. This will efficiently reduce the entire tax return produced by an investment.

Usage of excess in capital damages by other methods:

One can move the capital damages ahead to succeeding years to discredit any interest in the future. This will help in decreasing a taxpayer’s expense burden.

Usage of Tax-Advantaged retiring schemes:

Under these plans, you can take out the retirement money and be in a lower tax section. The retirement money will also multiply in a tax-free zone.

Time Gains at the time of retirement:

Around the time of retirement, you should think about waiting till the time you quit working to trade valuable assets. If your retirement asset is low then the capital gains tax at the time of retirement will also be low. If you are lucky then you would not have to pay capital gains tax at all.

Think about the holding periods:

You should remember to make the new purchase of the housing property, one year before trading the old possessions. If you are selling the property a year after it’s possession, then make sure to find out the original trade price of the property. These strategies will come in handy at the time of larger trades than the smaller ones. Also, it will be beneficial if you fall under the higher tax bracket instead of the lesser ones.

Conclusion

There are only a few methods that are aforementioned by which a person can decide to save the capital gain tax on any property. One way to both decrease inequality and increase revenue is to change the assessment of capital gains. Another way of the leading proposals is to charge capital gains as they accumulate rather than waiting to sell out the property.

[charteredaccountantjanakpuri]

Decoding Sections 54 and 54F of the Income Tax Act, 1961

Are you planning to sell a residential house or other capital assets? Are you worried about the tax liability on the capital gains you are going to make? If yes, please walk through our latest article on ��Decoding Sections 54 and 54F of the Income Tax Act’ and get cues on saving your taxes. https://bit.ly/3vo6flY

[captainmartinisblog]

Macedonians and Martyrs

Wednesday 24th November 2021 – Thessaloniki, Greece

Evidently, the full rainbow on the way back to the ship yesterday didn’t count for much because the weather today started cold, grey and showery, with a temperature that never rose above 12c (54f). So it was in a way fortunate that I got the time wrong for my all-day tour because we couldn’t even see Mount Olympus for the low cloud and 7-hours traipsing round a load of old ruins in the drizzle might not have been the best way to spend the day.

Instead, I opted for the complimentary 4-hour sightseeing tour of the city, the second largest in all Greece and the capital of Greek Macedonia.

There’s a strong Byzantine influence here and our first stop was the White Tower, rebuilt by the Ottomans in 1430 on the site of a Byzantine tower in the sea-walls. The irony is that it isn’t white (of course); it was only called that after it stopped being used as a prison and was whitewashed in 1912. But while the whitewash didn’t stick, the name did.

Next was the obligatory viewpoint at the Trigonion Tower in the old Byzantine upper city walls. Unlike Dubrovnik, for instance, the walls are not complete and only short sections can be walked. This is where we did not see Mount Olympus!

This rather grand looking church is the Church of Saint Pavlos, dedicated to St Paul the Apostle who travelled here in 49ad. In spite of its apparent Byzantine style, it is relatively new, having been consecrated in 1997.

The church of Saint Demetrios of Thessaloniki is a 5-aisled basilica dating from and dedicated to the 4th century christian martyr imprisoned in an old Roman bath-house and later executed for his faith.

Demetrios is the city’s patron saint but the church was destroyed in a huge fire in 1917 which destroyed a vast section of the city. It took years to be re-built but was finally reconsecrated in 1949.

However, the excavations necessary revealed an old crypt and the original bath-house in which Demetrios was executed.

The church holds a sarcophagus shrine but no remains, although there is a rather creepy story about remains emitting divine liquid and a well with healing waters – you know, the usual sort of thing….

The Archaeological Museum was our next stop and a tour of an exhibition of precious gold and silver artefacts and jewellery, including a number of unusual head-wreaths.

This head-wreath, originating from this area, apparently appeared on the Black Market and was acquired by the Getty Foundation but later returned to it’s just and rightful owners – unlike certain other famous artefacts, our guide was quick to point out!

This area of northern Greece was once rich in gold and silver mines and while it is all exhausted now, King Philip II of Macedonia is claimed to have issued the first gold coins; he was also the father of Alexander the Great. There is a monument to him on the waterfront.

[perkwunos]

So, insofar as "all existence interprets", and the drives in particular interpret, and "will to power interprets", so that "interpretation itself [is] a form of will to power" (KSA 12:2 [148]), we end up with the picture Nietzsche proposes in Beyond Good and Evil section 36 of "the world as will to power and nothing besides". There, on the basis of the assumption that we cannot get to any reality other than the reality of our drives, Nietzsche asks,

Is it not permitted to make the experiment and ask the question whether this given does not suffice for understanding on the basis of things like itself the so-called mechanistic (or 'material') world as well?…as a kind of drive-life, in which all organic functions…are still synthetically bound upwith each other – as a preform of life? (BGE sec. 36, KSA 5:54f.)

It surely is permitted to make that experiment, and the results will be the realisation that as the drives interpretively project our (waking) world, what they encounter is will to power – as Nietzsche puts it, "'Will' can of course work only on 'will' – and not on 'matter' (not on 'nerves', for example)". Thus the drives encounter "will" in the form of other interpreting drives – not only the drives of our fellow human beings, but also those that animate animals, plants, and all other natural phenomena. In other words: panpsychism.

Graham Parkes, “Nietzsche, Panpsychism, and Pure Experience: An East-Asian Contemplative Perspective” in Nietzsche and Phenomenology