Announcement

Collapse
No announcement yet.

Property amount in to FD; any interest/liability?

Collapse
X
Collapse

Property amount in to FD; any interest/liability?

Last updated: April 1 2012
14 | Posts
1980 | Views
  • Time
  • Show
Clear All
new posts

  • Property amount in to FD; any interest/liability?

    Consider one is getting some amount as a part of his/her share after selling ancestors very old property. Will he/she should be liable of paying any Tax if he/she wishes to make a safe regular income through FD.

    Any issues of depositing this amount into bank?

    Friends, your help is highly appreciated.
  • #2

    #2

    Re : Property amount in to FD; any interest/liability?

    Originally posted by LChand View Post
    Consider one is getting some amount as a part of his/her share after selling ancestors very old property. Will he/she should be liable of paying any Tax if he/she wishes to make a safe regular income through FD.

    Any issues of depositing this amount into bank?

    Friends, your help is highly appreciated.
    If property is not gifted then After selling any OLD Property he has to give Capital Gain TAX, as per Circle Rate CA can let you know how much Capital Gain TAX will be given.

    After that remaining amount can be put into Bank FD.... Full year Interest of Bank FD will be added into yearly income and then Income Tax will be given at that whole yearly income.... Better to make FD in several names like Him , Wife , Father , Mother to avoid TAX.

    Tax bracket, NIL for 2 Lac yearly income (including FD bank intrest).
    10% from 2 Lac to 5 Lac. This tax up to 1 Lac can be saved by Medical Insurance , PPF investment , Bonds... several ways.

    Comment

    • #3

      #3

      Re : Property amount in to FD; any interest/liability?

      most of such deals are in black... so..investing in other property would be the only option to save this Capital gain tax?

      consider the property is as old as 30 years.

      Comment

      • #4

        #4

        Re : Property amount in to FD; any interest/liability?

        Originally posted by LChand View Post
        most of such deals are in black... so..investing in other property would be the only option to save this Capital gain tax?

        consider the property is as old as 30 years.
        If everything is in Black then only way to save tax is to invest in any other property and shift Black money to there.....

        Comment

        • #5

          #5

          Re : Property amount in to FD; any interest/liability?

          Saurabh bhai..thanks for the reply.

          In India, from the old times, women save the money from monthly expenses & keep this amount with themselves..after 20-25 years, they have a decent sum; is it fine for them to deposit this into banks...; any precautions to take care?

          Comment

          • #6

            #6

            Re : Property amount in to FD; any interest/liability?

            Originally posted by LChand View Post
            Saurabh bhai..thanks for the reply.

            In India, from the old times, women save the money from monthly expenses & keep this amount with themselves..after 20-25 years, they have a decent sum; is it fine for them to deposit this into banks...; any precautions to take care?
            Yes, but try to make several FD in women name in small sizes like each FD of 45 K , and will be better if use 2-3 banks not all money in one bank & account.... IT Department do not force to file income tax return if income is less then 2 Lac per year by any sources.... so it means anyone can show around 1 Lac saving per year even without giving any income tax....

            Comment

            • #7

              #7

              Re : Property amount in to FD; any interest/liability?

              In Noida most of properties are sold even before registration ....will it be considered as short term gain or long term ? As such one needs to hold property for three years to get it treated a capital gains tax

              =========================
              Rule

              If property is held for less than three years prior to its sale, it is termed as a shortterm capital asset and any gain arising from the sale is treated as a short-term capital gain. If the property is sold after a holding period of more than three years, it is treated as a long-term capital asset and a gain arising from its sale is assessed as longterm capital gains. While short-term capital gain on sale of property will be subject to the normal rates of tax as applicable to an individual , there are certain exemptions for long-term capital gains on property sale.

              It is important to note how capital gain is computed on sale of property. To compute short-term capital gain, the cost of acquisition and the cost of improvement (any additions or alterations to existing property) are reduced from the sale value. In order to compute longterm capital gain, it is the indexed cost of acquisition and indexed cost of improvement that is reduced from the sale value. The cost inflation index (CII) is notified by the central government for every financial year (since 1981-82 ) and it basically tracks the increase in the general price level or inflation. Indexing is done in order to bring the cost of acquisition to the same price level as is applicable in the year of sale.

              Exemptions from tax

              There are certain provisions in the Income Tax Act which provide exemption from long-term capital gains tax. Section 54 provides exemption from tax to individuals , on capital gain arising from the transfer or sale of a house if these conditions are satisfied.

              The conditions:

              The asset transferred or sold is a house and it is a long-term capital asset (held for more than three years) The capital gain should be invested in the purchase of another house either one year before or within two years from the date of transfer, or used for construction of a house within three years of the date of transfer The property purchased or constructed is not transferred within three years from the purchase date.

              Comment

              • #8

                #8

                Re : Property amount in to FD; any interest/liability?

                Originally posted by saurabh2011 View Post
                Yes, but try to make several FD in women name in small sizes like each FD of 45 K , and will be better if use 2-3 banks not all money in one bank & account.... IT Department do not force to file income tax return if income is less then 2 Lac per year by any sources.... so it means anyone can show around 1 Lac saving per year even without giving any income tax....
                If u have to invest a relatively bigger amount then dont go for this way better pay taxes and have peace ful life...agar case lag gaya to lene ke dene pad jayenge....pant utar deta hai income tax department...koi approach bhi kam nahi aati ( util u know of sonia gandhi or u are ponty chadha )
                Life is good.

                Comment

                • #9

                  #9

                  Re : Property amount in to FD; any interest/liability?

                  Originally posted by adit0083 View Post
                  If u have to invest a relatively bigger amount then dont go for this way better pay taxes and have peace ful life...agar case lag gaya to lene ke dene pad jayenge....pant utar deta hai income tax department...koi approach bhi kam nahi aati ( util u know of sonia gandhi or u are ponty chadha )
                  Yes.... TAX dene mai hi samagh daari hai

                  Comment

                  • #10

                    #10

                    Re : Property amount in to FD; any interest/liability?

                    4-6 lacs is too a big amount...if deposited in 2-3 accounts...?

                    Originally posted by adit0083 View Post
                    If u have to invest a relatively bigger amount then dont go for this way better pay taxes and have peace ful life...agar case lag gaya to lene ke dene pad jayenge....pant utar deta hai income tax department...koi approach bhi kam nahi aati ( util u know of sonia gandhi or u are ponty chadha )

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X