Scope for reducing tax liability on stcg

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sakshi (Querist)
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19 March 2014 One of my client has STCG on sale of property Rs. 48.10 lacs. Is there any scope for reduction of tax liability on above STCG except deductions of chapter VI.

the details are as below:
Sale consideration: 55,00,000.00
Less: Cost of acquisition 6,90,000.00
STCG 48,10,000.00

How can i reduce it to the maximum?

Ankit

Ankit (Expert)
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19 March 2014 Sakshi,

since it is STCG, unfortunately you can do nothing about it....you have t pay tax on it...

only if it were LTCG, you could use section 54

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sakshi

sakshi (Querist)
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19 March 2014 Thanks for your reply...

But what i am asking about tax planning... Can't i claim illegal/temporary construction (which i have not constructed at all actually)as a cost of improvement of the said property??

Please suggest..

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Ankit

Ankit (Expert)
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19 March 2014 See sakshi....illegally, there are many more things you could do...

but then, in property transactions, it is not advisable, since the SC is greater than 50,00,000 TDS will also get deducted, plus there will be a AIR reporting...

so scrutiny may come..and at that time, you should not get into unnecessary troubles..

and BTW thats tax evasion..not planning...

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Ankit

Ankit (Expert)
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19 March 2014 you are welcome sakshi,,incase you have any more doubts, pl feel free to ask

sakshi

sakshi (Querist)
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19 March 2014 Thanks again..

Exactly.. as what you said..."there are many more things you could do"

what are those "many more things"??