ThinkStock PhotosDilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies.
My father passed away in July 2017. We are transferring all stock investments in my mother’s name as the demat account was in joint names. In future, I will receive the shares either as a gift or inheritance. Will I have to pay tax when I sell these shares in future as there will be no STT paid when I receive them from my mother? All the shares are listed and in demat form. — ASHISH CHAUDHARI
Your mother will have to give gift of the listed shares to you as she had inherited the stock investments on the demise of your father. There will not be any liability for payment of any income tax when shares are gifted by your mother to you. In future whenever you will sell the shares, the date of acquisition by your father will be treated as your date of acquisition and the cost of acquisition in the hands of your father will be your cost of acquisition. I assume that your father must have paid STT when the shares were purchased by him. Even though you will not pay STT when your mother will gift the shares to you, you will be entitled to claim exemption u/s. 10(38) if other conditions stipulated therein are satisfied.
In my brother’s IT Return, interest from other sources (interest on FD & saving accounts) was shown in the return but this was not considered by the tax department as is evident in its communication under section 143(1). Thus, tax relief under 80 TTA has been disallowed. What should he do? — RAKESH NARAIN SHARMA
While filing the return of income the relief u/s. 80TTA is to be claimed in respect of the interest received on savings account. If the claim is made in the return of income and the same is not considered while issuing intimation u/s.143(1), then an application for rectification can be made u/s. 154 of IT Act, 1961. Even if the claim is not made in the return of income, but the details of the eligible deduction is submitted, then also an application can be made u/s. 154 of IT Act, 1961, to claim the deduction.
Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com Tax to et.tax@timesgroup.com Insurance to et.insurance@timesgroup.com Realty to et.realty@timesgroup.com
My father passed away in July 2017. We are transferring all stock investments in my mother’s name as the demat account was in joint names. In future, I will receive the shares either as a gift or inheritance. Will I have to pay tax when I sell these shares in future as there will be no STT paid when I receive them from my mother? All the shares are listed and in demat form. — ASHISH CHAUDHARI
Your mother will have to give gift of the listed shares to you as she had inherited the stock investments on the demise of your father. There will not be any liability for payment of any income tax when shares are gifted by your mother to you. In future whenever you will sell the shares, the date of acquisition by your father will be treated as your date of acquisition and the cost of acquisition in the hands of your father will be your cost of acquisition. I assume that your father must have paid STT when the shares were purchased by him. Even though you will not pay STT when your mother will gift the shares to you, you will be entitled to claim exemption u/s. 10(38) if other conditions stipulated therein are satisfied.
In my brother’s IT Return, interest from other sources (interest on FD & saving accounts) was shown in the return but this was not considered by the tax department as is evident in its communication under section 143(1). Thus, tax relief under 80 TTA has been disallowed. What should he do? — RAKESH NARAIN SHARMA
While filing the return of income the relief u/s. 80TTA is to be claimed in respect of the interest received on savings account. If the claim is made in the return of income and the same is not considered while issuing intimation u/s.143(1), then an application for rectification can be made u/s. 154 of IT Act, 1961. Even if the claim is not made in the return of income, but the details of the eligible deduction is submitted, then also an application can be made u/s. 154 of IT Act, 1961, to claim the deduction.
Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com Tax to et.tax@timesgroup.com Insurance to et.insurance@timesgroup.com Realty to et.realty@timesgroup.com
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(Your legal guide on estate planning, inheritance, will and more.)
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(Your legal guide on estate planning, inheritance, will and more.)
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