Last monetary year, I produced extended term capital gains (LTCG) of Rs 2 lakh from mutual funds and booked extended term capital loss (LTCL) of Rs 2 lakh from direct shares. While filing return exactly where do I require to show the gains and losses so that losses from shares can be set off against gains from MF. —Sumitabha Banerjee Any LTCG arising on transfer of debt mutual fund shall be taxed u/s 112 at 20% whereas LTCG on transfer of units of equity-oriented mutual fund shall be taxed at the price of 10% (with out indexation), if such gains are in excess of Rs 1 lakh in a monetary year and Securities Transaction Tax (STT) has been duly paid.
For A.Y. 21-22, you have to file ITR-2/3 wherein beneath schedule CG, you have to furnish particulars pertaining to sale transactions of your securities. Details pertaining to sale transaction of equity share or unit of equity oriented fund on which STT is paid will have to be furnished beneath Schedule 112A for calculation of resultant acquire/loss. The acquire/loss so calculated shall be auto-populated in Schedule CG.
How is capital gains tax is calculated with reference to promoting of land? —Venkataraman T N For tax purposes, immovable home, i.e., land or constructing is classified as extended-term capital asset if it is held for a period exceeding 24 months, else, it is regarded as quick term capital asset. In order to compute capital gains on transfer of land, expense of acquisition, expense of improvement and expenditures (incurred wholly and exclusively in connection with the transfer) are to be deducted from the sale consideration. Cost of acquisition and improvement is permitted to be indexed in case of extended-term capital assets.
For this goal, central government has notified expense inflation index. The Income Tax provisions prescribe taxation of extended term capital gains at 20% (such as surcharge and cess as applicable).
I have got compensation quantity of Rs 45 lakh from my employer. Income tax of Rs 12 lakh has been deducted. Please let me know the legal approaches to claim the earnings tax refund —Manjunath You have to file the relevant ITR and declare this earnings. Any excess of TDS more than the final tax liability shall be refunded by the earnings tax division following processing of the return.
The writer is director, Nangia Andersen India. Send your queries to [email protected]