By Chirag Nangia
I’m an ayurvedic practitioner and replenish c-4. Can I present revenue from NFO mutual fund and listed shares in ITR-4 beneath Section 44 or I ought to fill ITR-3?
—Vishwanath Gaur
ITR-4 could be filed by people with revenue as much as Rs 50 lakh from enterprise or occupation and have opted for presumptive taxation scheme. As a medical practitioner, you could provide the revenue to tax beneath Section 44ADA, i.e., presumptive foundation whereby taxable revenue is deemed to be 50% of gross receipts, with no requirement to take care of books of accounts. No extra deductions in respect of any bills will probably be allowed. Further, revenue from NFO mutual funds and listed shares shall be capital beneficial properties and it may be disclosed in ITR-4. Individuals deriving revenue beneath the heads ‘Salaries, Business/ Profession and other sources’ are required to file ITR-3.
An assessee had acquired the tenancy rights through an affidavit executed in her favour by her grandmother, previous to her demise. No cash was invested in buying the rights. The assessee transferred her rights to a 3rd celebration for Rs 20 lakh however didn’t put money into any tax-savings bond. What is the tax implication?
—Ananth Narayan
Tenancy rights are capital property and give up of tenancy rights quantities to switch. The price of acquisition can be both the price of buy value or in different circumstances, it could be taken as Nil, excluding acquired by succession or inheritance. Consequently, revenue arising from this switch is long-term capital beneficial properties (LTCG) as tenancy rights had been acquired greater than three years previous to date of switch, and taxed at 20% past fundamental exemption i.e., Rs 5 lakh in your case, being a resident senior citizen.
Further, since tenancy proper in a residential home shouldn’t be similar as a residential home, she will’t avail exemption beneath Section 54 by investing the listed capital beneficial properties however must make investments the web consideration to avail exemption beneath Section 54F. Since tenancy proper is neither land nor a constructing, she will’t avail the tax exemption by investing in capital beneficial properties bonds beneath Section 54EC.
The author is director, Nangia Andersen India. Send your queries to [email protected]
Source: www.financialexpress.com”