Your queries: Income Tax; Chosen new tax regime? You can continue with PPF

• May 7, 2023
• CA Chandan Agarwal's Office

Since immovable property is held for more than two years, therefore the capital gain will be regarded as long term.

I am thinking of opting for the new tax regime for AY 2024-25. Can I continue to deposit in PPF and buy mediclaim? Should I show these in my ITR?

Yes, you may continue to deposit the amounts in PPF and mediclaim despite opting for the new regime which is now the default scheme AY 2024-25 onwards. There shall be no requirement to report these items in the ITR if you are not claiming the deduction.

Last year I sold my flat and got Rs 90 lakh. I bought the flat for Rs 30 lakh about 15 years ago. How do I calculate the capital gains?

—Rajesh Ahuja

Since immovable property is held for more than two years, therefore the capital gain will be regarded as long term. The indexed cost of acquisition shall be deducted from the sale price of the flat. You shall be allowed to reduce any expenses incurred with relation to the transfer of the flat. If you have made any improvements to the flat the benefit of the same can also be reduced from sale consideration after indexation of such amount.

In the year 2021, I had bought Kisan Vikas Patra for Rs 20 lakh and mentioned the accrued interest in my ITR and paid income tax on it every year. As there is no provision of TDS on interest on KVP, the interest amount after maturity will reflect in my AIS. What should I do at that time to avoid double taxation?

—Name withheld

Since you have opted for payment of taxes on accrual of interest on KVP and will be receiving the entire amount on maturity, TDS will be applicable at the time of maturity itself. It may be noted that no liability for payment of taxes will arise at the time of maturity and excess TDS may be claimed as refund while filing the return of income.

What will be the tax implications of gifting equity shares (with consideration and without consideration) to my grand-daughter?

—Nadu

Transfer of shares can be made to your grand-daughter without any implication of tax irrespective of whether such transfer is made with or without consideration because transfer between legal ascendants and descendants is exempt under Section 56(2)(x) of the Income-Tax Act.

Source: https://www.financialexpress.com/money/income-tax/your-queries-income-tax-chosen-new-tax-regime-you-can-continue-with-ppf/3076058/