Limited scrutiny 143(2) purchase of new property & ltcg

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Hemant

Finance Professional

32 Points Joined August 2015

I have received 143(2) notice. It identifies two issues:

1. Purchase of new property

2. Deduction claimed under the head Capital Gains

Background:

We (me & my wife) sold our 8 year old jointly owned flat recently and bought another flat in joint names. Entire sale proceeds of the old flat were invested in buying the resale flat. We also had to take a home loan to pull additional funds.

Original returns were filed by me and I believe the capital gain calculations etc are correct.

I have been asked to personally meet AO and produce "any evidence which I feel is necessary in support of the said return of income". In short there is no specific list of documents to be produced.

Questions:

1. What documents should I carry with me? I was planning to carry following:

a. Copies of agreements (+ Stamp duty receipt, Registration receipt, Index 2) of the old flat when I purchased it from the builder and sold it to the buyer.

b. Copy of sale agreement for the new flat (+ Stamp duty receipt, Registration receipt, Index 2)

2. What exactly would the AO be interested in? Can I ask him the issues upfront so that I can present relevant documents and save our time or should I just dump everything mentioned above and wait for his reaction/questions?

3. Both the properties were financed using our savings and home loans. Do I need to carry home loan documents e.g. Sanction letter, disbursement details etc?

4. I do not have much time left to collate all the documents. Can I ask for more time to produce them in case AO is interested in them?

Please advice.

Replies (4)

sirisha

27 Points Joined December 2015

U carry all the sale deeds & documents.U also present the housing loan details such as bank statement etc.U can even ask more time to produce

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

1. Provide income tax return and computation
2. Provide purchase and sale deeds along with housing loan statements
3. Write simple letter giving background of your sources of income and housing loan taken. MENTION ALL ENCLOSURES YOU SUBMITTING IN THE LETTER.
4. Provide Tds deduction details u/s 194IA along with paid challans
5. Don't ask what he wants otherwise he will give you big list , just dump the details.
6. If he wants more details, he will send you letter.
7. Do not give bank statements at the first instance. Let him send notice if he requires, then only send.

Hemant

Finance Professional

32 Points Joined August 2015

Thanks a lot Sirisha and Raj for a detailed reply. That was quick and certainly helps.

Fellow members do keep your suggestions coming.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

You can login into your income tax portal and view efiled returns / forms. Under that download ITR Acknowledgement, ITR Form - This is an option. Further , download other documents of that year like intimation u/s 143(1) , receipt of ITR-V at Bangalore. Most importantly , Prepare the computation of total income and tax on total income in an excel spreadsheet and take printout of submission to income tax officer.