21 June 2010
A person has won through lucky draw a flat which is under construction. he has registered the property in his name but possession is later in this year. What is his tax liability? Whether he has to pay income tax after registration or after getting possession?
22 June 2010
My friend is a gov. servant. He purchased a house and based on this purchase he won another house in a lucky draw. His annual income is Rs. 500000/- (Five Lakh say) and the market value of the property won is Rs.800000/- (Eight lakh) and it is under construction. He has paid Rs. 25000 as stampduty and Rs 8000 as registration fees. He will also pay Rs.65000 towards meter charges, society charges etc for this property . What will be his tax liabilities?
There are many questions like
1) Wheteher Market value of property will be added in his salary income for tax calculation or it will be considered separately for tax? if separate what will be the rate of tax? 2) Whether expenses towards registration of property, stampduty, meter charges etc will be deducted from the market value of the property for income tax calculation? 3) When he becomes liable for payment of income tax for above property after registration or after getting possession/occupation of the property? 4) Whether all the income tax will be paid in lump sum or it can be paid in three installemnts. 5) Whether the tax paid will be advance tax or self assassment tax? please elaborate.
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