A notice under Section 131 of the Income Tax Act is received when the Assessing Officer has reason to suspect that any income has been concealed or is likely to be concealed.
Q) My wife received Rs 20 lakh from her mother as a gift. However, she did not mention it in her ITR. Now she has got a notice under Section 131. What should she do?
A notice under Section 131 of the Income Tax Act is received when the Assessing Officer has reason to suspect that any income has been concealed or is likely to be concealed. From an income tax perspective, receipt of a gift from a relative does not trigger taxation, i.e., it is exempt in the hands of the receiver. However, it has to be disclosed as exempt income in Schedule EI of the ITR form. As you did not disclose the particulars of the gift received, a notice under Section 131 was sent to you. Gather all the documents sought and send within the deadline stipulated in the notice and co-operate with the tax authorities in the proceedings.
Q) I have invested in National Savings Certificates. How do I pay tax on the interest on maturity?
Deposits up to Rs 1.5 lakh in NSC qualify for deduction under Section 80C. Accrued interest on NSC also qualifies for deduction under it. As it is a cumulative scheme , each year’s interest is considered reinvested in the NSC. Since it is deemed reinvest-ed, it qualifies for a fresh deduction under Section 80C. Only the final year’s interest does not receive a tax deduction as it is not reinvested, but is paid back to the investor along with the interest of the earlier years and the capital amount.
Q) I am planning to redeem some units from my equity and debt mutual funds. How should I compute the tax on the gains?
Capital gains derived from sale of listed equity shares, units of equity-oriented mutual fund held for more than 12 months results in long-term capital gain, taxable at 10% + cess + surcharge (if applicable), in excess of `1 lakh, with no indexation benefit. However, if held for 12 months or less, would result in short term capital gain (STCG), taxable at 15%. Capital gain derived from debt oriented mutual fund held for more than 36 months would result in LTCG taxable at 20%. You can avail the benefit of indexation. However, if held for 36 months or less, it would result in STCG which is taxable at slab rate.
Source: https://www.financialexpress.com/money/your-queries-income-tax-show-gift-from-relative-in-schedule-ei-of-itr/3006484/
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