MY EX OFFICE COLLEGUE LEFT ABROAD FOR JOB IN SEPT 21 AND AGAIN RETURNED TO INDIA IN JAN2022. HE IS STAYING IN INDIA FROM JAN 2022 ONWARDS.

MY EX OFFICE COLLEGUE HAS THE FOLLOWING INCOME FOR LAST FY 2021-22



SALARY FROM INDIAN EMPLOYER 3,75,000
SALARY RECEIVED FROM FOREIGN CO 11,30,000
INTEREST ON SB ACC 29,000
INTEREST ON FIXED DEPOSIT 67,000

INVESTMENT -80 C 1,50,000
INVESTMENT -80D MEDICAL 25,000
INVESTMENT -80 TTA 10,000

WHAT WILL BE THE TAX LIABILITY FOR AY 2021-22.
WHAT ARE THE LIKELY DEDUCTION AVAILABLE.

PLS ADVICE

Please confirm these computations and interpretations.

Overview- Buyer had entered into the agreement with the builder in Nov 2013 for purchasing of Under Construction Property.The same was supposed to be completed in Nov 2017.

But the builder in Nov 2017 had failed to complete the construction of the same.In pursuance of the same, Buyer had approached the builder to refund the amount so paid where the builder completely disagreed to pay the amount so paid.

After having been rejected by the builder, the buyer had approached the National Consumer Court.

NCC was delivered the case and ordered to the builder to pay the buyer in Dec 2021 the amount so paid also including interest @ 8%.

Question 1- Computation of Capital Gain/Loss-

Answer 1-

As per Section 2(14)(a) ,capital asset means a right to obtain conveyance of immovable property, was clearly “property” as contemplated.


Further as per section 2(47)(ii) read with section 45, extinguishment of any right in a capital asset shall be regarded as transfer and liable to capital gain tax.

Moreover, as per discussed case laws of Richa Bagrodia Vs. Dy. CIT [2019] (Mum), Holding period for the purpose of capital gains is thus to be considered from the date of allotment of flat and not from the date of possession of flat.

Therefore the date on which allotment letter was issued and the date on which award is given by court shall be the period of holding.

Computation of Capital Gains/Loss-

Amount Awarded by Court- Rs 75,00,000(excluding interest@8%)

Less- Indexed Cost of Acquisition- Rs 1,07,72,545

FY 12-13 Rs 18,50,000*272(331)/200= Rs 30,61,750
FY 13-14 Rs 37,50,000*272(331)/220= Rs 56,42,045
FY 14-15 Rs 15,00,000*272(331/240= Rs 20,68,750

Capital Loss - Rs 32,72,545

Clarification 1- Whether these computations and interpretations are correct ?

Question 1- Treatment of Interest received as in pursuance of COURT AWARD in the hands of BUYER and whether TDS was supposed to be deducted by builder?

Answer 1-

As per section 2(28A) “interest” means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised.

Therefore The relevant provisions of laws that deal with the particular case are Section 14(1)(d) and 39(1)(d) of the Consumer Act, 1986 and 2019, respectively, and Section 2(28A), Section 56 and Section 194A of the Income-tax Act, 1961, the compensation granted under the Consumer Protection Act, 1986/2019 does not qualify as income under the Income-tax Act, even though the same is computed by way of ‘interest’. Therefore, there is no requirement to pay tax on the amount of compensation received under the Consumer Protection Act. The amount received as a refund by you from the builder along with interest @ 8% per annum should not be treated as taxable income.

Clarification 2-Whether these interpretations are correct ?


Please have a look and confirm whether any interpretations/computations are incorrect.

Dear Sir,
Please solve query releted to demand rectification u/s 154 . Earlier we received demand notice from income tax for payment of Tax for AY 2020 21 u/s 154 . Demand was fully accept and we have paid tax as per demand notice and uploaded on line response with tax paid challan copy on income tax portal (Demand fully accepted). But outstading demand still stand on income tax portal and we have received another demand notice for same tax payment as earlier we received. So please guide me how can it removed from income tax portal.
Thanks & Regards,
Harish Thanvi

Dear Sir,
Land is acquired by NHAI for expansion of High Way 2-LANE Into 4-LANE and compensation is given to beneficiary is TAXABLE UNDER INCOME TAX ????
Land is also acquired by INDIAN RAILWAY for new RAIL LANE, money received by beneficiary is TAXABLE OR NOT?????

Sir/ Madam,

I had B to C (small) sales only.
While filing GSTR 1, I entered figures in B2C small and in HSN details table.
Somehow I made mistake and both the figures differ by One paisa. That remained unnoticed.
While on 20th tried to file GSTR 3B the tax amount is not populated in the return.
Trying too many times I failed. I submitted the return blank. Then checked the already filed GSTR1 and the mistake noticed. I have not filed the GSTR 3B yet. but submitted. How to make payment or rectify the mistake.

Sir/Madam
One of my clients have salary income around 15lacs yearly.
He wants to save tax payable by way of donation given to political person. > Can anyone suggest me that it is faith full or not??
> How to make political contribution i.e online or offline??
> How to know which political party are register u/s 29 , so we can get deduction from gross total income?
> What is the limit for political contribution for fy-2022-23??

Thanks in advance for prompt support

The AY 22-23 ITR offline utility won't allow entering negative numbers or numbers in brackets to signify a capital loss in a given quarter. The overall yearly number is positive (gain) but for a specific quarter there is loss. Can anyone suggest how to handle this situation

ABC Pvt. Ltd. (GST Register Company ) pays RENT Per Month Rs. 30,000.00 to Mr. Sukanta Mondal (one of the Director of ABC Pvt. Ltd. Company) (but GST Unregister Person) after Deducted TDS for LAND purpose where ABC Pvt Ltd. Company Situated & doing here official cum factory related daily work ,

For this transaction Purpose ABC Pvt. Ltd. Company will pay RCM against this as per new rule w.e.f. 18/07/2022

Sir,

My Company has to declare dividend for the financial year 2021-22 out of the profit of the current financial year. Whether this dividend expense was allowable under income tax act. Whether it was taxable in the hands of the company or shareholder.

My Client is having an Income from Business and Profession (both) and he is unable to maintain his books of accounts. Now I have to file his ITR in such a way that he shall not be in receipt of Notice from Income Tax, kindly advice.