Your queries: Income Tax; LTCG on auction of gold to repay loan will attract tax
By Chirag Nangia
My wife wants to take a gold loan by pledging old ornaments. As she will be unable to repay the loan, she will authorise the bank to get the outstanding amount liquidated by selling the pledged ornaments. Will she incur any tax liability for auctioning the ornaments by the bank?
-Amitava Majumder
When pledged jewellery is auctioned by the bank, long term capital gain (LTCG) may arise in the hands of your wife as the consideration has indirectly been received by her. Further, as per Section 55 of Income Tax Act, 1961 the fair market value of the jewellery as on April 1, 2001 may be considered as its cost of acquisition for the purpose of calculating the capital gain.
Is it compulsory for an NRI to file ITR every year in India although having no income at all in India?
-Name withheld
As per Section 139 of the I-T Act, an NRI is not required mandatorily to file ITR in India if he has not earned any income from India. However, there are certain conditions / thresholds prescribed under the Act — deposit, expenditure and other conditions prescribed under Rule 12AB of the Income-Tax Rules, 1962 which mandate ITR filing.
I am planning to sell my flat. How do I calculate LTCG on it? Will it be from the date of getting the possession or from the date of booking the flat? What are the costs that I can adjust while calculating the tax amount? Can I avoid LTCG tax if I invest the full amount in NHAI bonds?
-Vinod Auralia
Capital gain shall be calculated on the basis of the date of transfer of capital asset, i.e., the date of registering the sales deed. But in case the possession of the flat along with all other rights in property are transferred prior to the date of registering sale deed, the same shall be
