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Dear Sir/Mam, I have this case to discuss nd need your expert advise.
Mrs Radha who is Sr citizen receives SMS mentioning "Based on available information with Income Tax department, it appears that you were required to file ITR for A.Y. 2021-22 but have not filed yet. Please file your ITR or submit online response under e-Campaign tab on Compliance Portal". In FY2021-22,
– she has become a co-owner for a flat with her son worth 1.5Cr even though son is funding is 98-99% of cost. The TDS is being paid by her son of the under construction flat even though in joint name.
– earned 1Lakh in FD interest.
– Sale of Mutual funds worth 2.20 Lakh. But the Sale consideration is only 50,000 post grandfathered earning. .
– Purchase of Mutual funds worth 1.60 Lakh
I think Mrs. Radha is income is within 2.50 Lakh as she has no other income and hence not liable to pay tax. Now for the e-compliance do we give feedback against each of the above requested points. OR just file return and show Rs 0 tax liability. For the property shall she mention Info is partially correct as the flat is in joinr ownership and she has only 1% funding.
Thanks in advance,
Pret
Did not understand – where to submit KYC and account details? Under feedback section there is no provision of attachment neither in ITR2.
You need to respond to the notice online, with the proof of 1% holding in the new property.
If the exact share of property is not available, file ITR, though income being within basic exemption limit.
Thanks Sir, As there is no proof of 1% holding as all the installement cheque to Builder are paid by son, shall Mrs. rama file ITR form and provide feedback too? Or ignore the feedback and just file the return?
File return for more safety, and reply in compliance that the return has been filed, vide acknowledgement no…..
Thanks Sir. In ITR2 or in any ITR there is no provision to declare the purchase of property or mutual funds. How do we handle these transactions while filing returns? Is there a risk that IT department may again reissue notice on these high value transactions of property purchase?
Thanks,
Pret
Once the ITR filed with the transactions as reflected in AIS/TIS/form 26….. ITD will not re-ask the same question. But if any data reflected in AIS is not incorporated in ITR, then query may be raised again pertaining to it.
Yes, purchase of MF & property cannot be declared in ITR, but the sales figure with its gain/income must get declared.
Exactly that's the issue. In this case, Mrs Radha is the co-owner of the property for safety reasons and son is funding this Rs1.5 Cr under construction flat; paying installments. Also, the MF purchase, source is son providing her the amount for his maintenance / gift.
Q1 – How should we declare this MF purchase
Q2 – In our case, how should the property purchase be justified in ITR2.
Thanks,
Pret
There is no provision in ITR for declaration of purchase of any property or MF units.
You need to file her ITR and declare the amount given by her son as loan/Gift in it….
Thank you so much Sir for taking time to answer my query. One last question – Is it necessary to first have a gift deed and then only declare the gift amount in the ITR?
As it is within relatives, just confirmation by son will be sufficient, no need to make gift deed now.
Thank you so much Sir, for clarifying all my doubts. I submitted the ITR2 and it got processed as well saying No payment due. I have posted the feedback on eCampaign portal (status-partially answered) and not individually on AIS. Lets see it ITD comes back for any more clarification.
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