Ques: Mr. X is an salaried person who does intraday and delivery equities. X is not trading in F&O. Now, Mr. X is confused which ITR need to file because he want to disclose all his income.
Ans. Profit/ Loss generated from intraday trading will be treated as Income from Speculative Business and income derived from sale of equities will be treated as short term capital gain (holding for less than 1 year) or long term capital gain (holding for more than 1 year) as the case may be. Mr. X is required to file ITR-3, in order to disclose Salary income, income from speculative business, capital gain and income from other sources, if any.
Ques: Mr. X is planning to sell his ancestral property. With the corpus generated, X is going to close his housing loan. Do the capital gain qualify for IT exemption?
Ans. Selling the property and closing a housing loan are two different things. Capital gain arising on selling of property and exemption for such capital gains can be availed of only on making certain investments such as purchase of another house property or deposit on capital gain bonds. Sale of ancestral property and closing of housing loan do not qualify for exemption on capital gain.
Ques: Mr. A is a senior citizen aged 75 years and have not been filing income tax returns for past 10 years. Mr. A's total income is 90,000 only by interest on fixed deposit and total fixed deposit is Rs. 10,00,000. Should Mr. A liable to file return.
Ans. Under section 139(1) of Income tax Act, and individual has to file their Income Tax Returns, If the total income exceeds the maximum amount not chargeable to tax. As, Mr. A's income is not exceeding the basic exemption limit set for senior citizen, you need not file the respective return applicable to Mr. A.
Ques: Mr. X is 81 year old and is in dilemma that if he invested in Senior Citizens Saving Scheme or single premium Pradhan Mantri Vaya Vandana Yojana. Will he get tax relief under section 80C for amount invested in these schemes up to the limit of Rs. 1.5 lakhs.
Ans. Investment in Senior Citizen Saving Scheme is available for deduction under Section 80C. Investment in Pradhan Mantri Vaya Vandana Yojana is not covered under section 80C.
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