29 May 2024
I received money along with my bothers sisters and uncles when property inherited by us from my paternal grandfather, was sold ten years before. my 1/12th share. (2 uncles and 2 siblings and mother). Rs.10 Lac was not given by the builder then and held back as security until premises made vacant by tenants. But builder lapsed on the agreement for ten years for lack of money . Now after raising a legal notice by us, he has agreed to restart the project and pay Rs. 10 lac withheld. I had disclosed the full amount before ten years in my IT return as Capital Gains. I had put the indexed amount under NHAI bonds for 5 years. This amount then included the INR Ten lac receivable now. So Should I now re-disclose this INR 10 Lac amount in FY 24-25 ?. Is it necessary? In the meantime I lost my mother 2 years back. so her share of INR 10 Lac will be divided among her 3 children. So I will receive INR 10 lac/ 3 from my mothers bank account ,which is operable by my sister. how to treat this money in my return next year? The builder will enter into a agreement now to give interest on INR 10 Lac for ten years (as per previous agreement) in the form of space of 100 sft. but again convert this 100 sft x Rate per square foot to INR and pay at the time of plinth may be 1.5 to 2 years hence to me (and all others as well) . How to treat this substantial money to tax then?
30 May 2024
1. The builder will TDS over the total disbursed amount, so will be required to disclose it now. 2. Declare it under IFOS, when you get possession.
31 May 2024
1. Declare the income in the year of its receipt, under head IFOS (Income From Other Sources) 2. As the time of supply (based on possession handed over to builder) is in current year, and based on TDS deduction by builder over the payment, you will be required to declare the gain in current year .
31 May 2024
Sir, This ten lakhs receivable now was shown under CG ten years back and money (along with that recd. then) was lodged in CG scheme NHAI bonds for five years with indexation benefits. So again is it necessary to declare it as income IFOS in FY24-25 ,This will cost me 30% tax.
31 May 2024
The opinion is given based on the possession given to builder and hence time of its taxability. You may consult any local expert along with the agreement and verify the year of its taxability.
CAclubindia
