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Income tax

shivraat yadav (Account Assistent) (124 Points)

17 August 2016

My client his receipt from business fifty lakh rupee profit and his plan buy new house.so my question is did he buy new home of rs. thirty five lakh. how maintain this amount is profit & loss account because if he will show full amount of profit . so he had pay large tax how maintain this amount

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 17 August 2016

The fifty lakhs as profits from business is revenue receipt, and is taxable as per slab, (after available deductions under chapter VI-A), but cannot be claimed under section 54/54F, which is specifically for LT Capital Gains.

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shivraat yadav (Account Assistent) (124 Points)
Replied 17 August 2016

But Sir now he is not file of income tax return. if he buy a new home and i am asking if any provision this amount is show profit & loss account.However now he is profit 50 lakh please suggest me.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178001 Points)
Replied 17 August 2016

I am not able to get your exact problem. Do you mean he is in profit of 50 lakhs or he wants to purchase house out of cash he may be holding?

Any way in both the cases he is required to pay tax, file return if not filling at present.

If he has ligitimate amount in bank accounts, he will have to pay at slab rate of 30%; otherwise under declaration scheme (open now), at 45%. Your choice. I can't give you any other solution please.

shivraat yadav (Account Assistent) (124 Points)
Replied 17 August 2016

Thanks a lot for give me answer . I know he will pay tax slab rate 30 %. and my question is how save tax.because he want genuinely buy the house. if he will buy a new home rs 35 lakh after that he having 15 lakh rupees so what could happen