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Some of the queries asked by people are given below.

Interiors and furniture sale along with house
Excerpt of query:	I am selling my house. If I make a separate agreement with buyer and show that interior and furniture cost is around 8-10 lakhs, whether I need to show bills if IT dept sends notice? Whether I need to mention all items and their cost or i can just mention Interiors and no mention of cost in Sale agreement? read more

Interiors and furniture sale along with house

Excerpt of query:

I am selling my house. If I make a separate agreement with buyer and show that interior and furniture cost is around 8-10 lakhs, whether I need to show bills if IT dept sends notice? Whether I need to mention all items and their cost or i can just mention Interiors and no mention of cost in Sale agreement?

Dtvsv delay
Excerpt of query:	I have seen that dtvsv form issued last Thursday.. but when clicked inside it still showing awaiting signed form 4 from CIT I CAN’T understand.. whether it is considered as form 4 issued or not read more

Dtvsv delay

Excerpt of query:

I have seen that dtvsv form issued last Thursday.. but when clicked inside it still showing awaiting signed form 4 from CIT I CAN’T understand.. whether it is considered as form 4 issued or not

270A
Excerpt of query:	The Ld AO has initiated penalty proceedings u/s 270A and the operating para reads as under:- ” Whereas in the course of proceedings for the Assessment Year 2019-20, it appears that you have under-reported income which is in consequence of misreporting thereof as per details given in the assessment order.” Whether the same is considered to be under reporting or misreporting of income? read more

270A

Excerpt of query:

The Ld AO has initiated penalty proceedings u/s 270A and the operating para reads as under:- ” Whereas in the course of proceedings for the Assessment Year 2019-20, it appears that you have under-reported income which is in consequence of misreporting thereof as per details given in the assessment order.” Whether the same is considered to be under reporting or misreporting of income?

Updated return
Excerpt of query:	Whether in case of donation to political party if the case is taken for assessment or reassessment & the A.O. decides to disallow the donation made & initiates penalty u/s 270A whether the same will be leviable for under-reporting /misreporting i.e. 50% of tax payable or 200% of tax payable. Whether it will be the amount of tax & surcharge only or it will include the amount of interest. read more

Updated return

Excerpt of query:

Whether in case of donation to political party if the case is taken for assessment or reassessment & the A.O. decides to disallow the donation made & initiates penalty u/s 270A whether the same will be leviable for under-reporting /misreporting i.e. 50% of tax payable or 200% of tax payable. Whether it will be the amount of tax & surcharge only or it will include the amount of interest.

Execution of Gift Deed
Excerpt of query:	Is it mandatory to execute a gift deed for gifting shares of private company? read more

Execution of Gift Deed

Excerpt of query:

Is it mandatory to execute a gift deed for gifting shares of private company?

148A
Excerpt of query:	AO2 passes an order u/s 148A[3] without any notice u/s 129 and or a fresh notice u/s 148A[1] etc and relies upon notice u/s 148A[1] by AO 1 and reply by me to AO 1 what is the remedy ? read more

148A

Excerpt of query:

AO2 passes an order u/s 148A[3] without any notice u/s 129 and or a fresh notice u/s 148A[1] etc and relies upon notice u/s 148A[1] by AO 1 and reply by me to AO 1 what is the remedy ?

Gold metal on lease to father propertieyship firm
Excerpt of query:	Sir, If a person leases gold to assessee’s father’s jewellery firm and gets interest on it. Is it allowed in income tax act to lease gold instead of cash to private firm read more

Gold metal on lease to father propertieyship firm

Excerpt of query:

Sir, If a person leases gold to assessee’s father’s jewellery firm and gets interest on it. Is it allowed in income tax act to lease gold instead of cash to private firm

Capital gain on Sale of flat alloted under redevelopment (Income Tax)
Excerpt of query:	Property Background Original MHADA property was exchanged for alternate accommodation in Ghatkopar (East), Mumbai. (before 2000) Property was later transferred to the current owner through inheritance.(in 2008) The property underwent redevelopment through a formal development agreement. (in 2014, further with Supplementary deed 2020) The owner received a new flat in the redeveloped project as permanent alternate accommodation.(in Mar 2022) The redeveloped flat was subsequently sold in June 2024. Now we are now having two CG scenario :- Scenario A : Capital Gain on Sale of redeveloped Flat Event: Sale of property (redeveloped flat) in June 2024 (AY 2025-26). Full Value of Consideration: Actual sale price received from buyer. Cost of Acquisition: Fair Market Value (FMV) as on 01/04/2001 (indexed) → as per Sec 55(2)(b) and Sec 48. (Query) Indexation: ✅ Available → Using CII of 363 for FY 2024-25. Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20% (Sec 112). Exemptions: Can claim Sec 54 (new residential property) or Sec 54EC (investment in eligible bonds up to ₹50L), if eligible investments made. Scenario B : Capital Gain on Transfer to Developer (Sec 45(5A)) Event: Transfer of development rights to builder. Tax Trigger: Completion Certificate date (likely AY 2023-24). Full Value of Consideration: Stamp Duty Value (SDV) of the new flat as on that date alongwith Monetary consideration. Cost of Acquisition: FMV as on 01/04/2001 (indexed). Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20%. Exemptions: Can claim under Sec 54 or Sec 54EC, if reinvested or invested in eligible bonds. Capital Gain on Sale of New Flat (Sec 49(7)) Event: Sale of redeveloped flat in June 2024 (AY 2025-26). Full Value of Consideration: Actual sale price received. Cost of Acquisition: Deemed = Capital Gain already taxed under Sec 45(5A). Indexation: ❌ NOT available (as per Sec 49(7)). Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20%. Exemptions: Can claim Sec 54 / Sec 54EC, if eligible investments made. My Query :- Can we follow Scenario A? Can the Cost of Acquisition for computing capital gains on the sale of a newly redeveloped flat be considered as the Fair Market Value (FMV) as on the date of allotment of the new flat (31/03/2022), since: 1️⃣ The original cost of acquisition is not available,2️⃣ The property was inherited, and3️⃣ The newly allotted flat is completely different in character, structure, and specifications from the old property handed over for redevelopment, making the old property irrelevant for valuation purposes? We do not wish to consider FMV as on 01/04/2001, as the sold property is the new flat obtained in exchange. Is there any provision/Case laws under the Income-tax Act, 1961, that permits using the FMV as on the date of allotment of the new redeveloped flat as the Cost of Acquisition for capital gain computation in this case? Now the Sale proceed has been transfer to 5 grandsons and they invested in their individual name, still we can claim section 54 exemption? any separate view of your in above case? Guide with appropriate Computation mechanism read more

Capital gain on Sale of flat alloted under redevelopment (Income Tax)

Excerpt of query:

Property Background Original MHADA property was exchanged for alternate accommodation in Ghatkopar (East), Mumbai. (before 2000) Property was later transferred to the current owner through inheritance.(in 2008) The property underwent redevelopment through a formal development agreement. (in 2014, further with Supplementary deed 2020) The owner received a new flat in the redeveloped project as permanent alternate accommodation.(in Mar 2022) The redeveloped flat was subsequently sold in June 2024. Now we are now having two CG scenario :- Scenario A : Capital Gain on Sale of redeveloped Flat Event: Sale of property (redeveloped flat) in June 2024 (AY 2025-26). Full Value of Consideration: Actual sale price received from buyer. Cost of Acquisition: Fair Market Value (FMV) as on 01/04/2001 (indexed) → as per Sec 55(2)(b) and Sec 48. (Query) Indexation: ✅ Available → Using CII of 363 for FY 2024-25. Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20% (Sec 112). Exemptions: Can claim Sec 54 (new residential property) or Sec 54EC (investment in eligible bonds up to ₹50L), if eligible investments made. Scenario B : Capital Gain on Transfer to Developer (Sec 45(5A)) Event: Transfer of development rights to builder. Tax Trigger: Completion Certificate date (likely AY 2023-24). Full Value of Consideration: Stamp Duty Value (SDV) of the new flat as on that date alongwith Monetary consideration. Cost of Acquisition: FMV as on 01/04/2001 (indexed). Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20%. Exemptions: Can claim under Sec 54 or Sec 54EC, if reinvested or invested in eligible bonds. Capital Gain on Sale of New Flat (Sec 49(7)) Event: Sale of redeveloped flat in June 2024 (AY 2025-26). Full Value of Consideration: Actual sale price received. Cost of Acquisition: Deemed = Capital Gain already taxed under Sec 45(5A). Indexation: ❌ NOT available (as per Sec 49(7)). Nature of Gain: Long-Term Capital Gain (LTCG) → Tax @ 20%. Exemptions: Can claim Sec 54 / Sec 54EC, if eligible investments made. My Query :- Can we follow Scenario A? Can the Cost of Acquisition for computing capital gains on the sale of a newly redeveloped flat be considered as the Fair Market Value (FMV) as on the date of allotment of the new flat (31/03/2022), since: 1️⃣ The original cost of acquisition is not available,2️⃣ The property was inherited, and3️⃣ The newly allotted flat is completely different in character, structure, and specifications from the old property handed over for redevelopment, making the old property irrelevant for valuation purposes? We do not wish to consider FMV as on 01/04/2001, as the sold property is the new flat obtained in exchange. Is there any provision/Case laws under the Income-tax Act, 1961, that permits using the FMV as on the date of allotment of the new redeveloped flat as the Cost of Acquisition for capital gain computation in this case? Now the Sale proceed has been transfer to 5 grandsons and they invested in their individual name, still we can claim section 54 exemption? any separate view of your in above case? Guide with appropriate Computation mechanism

transfer of stock in trade by llp to partner without reconstitution and dissolution?
Excerpt of query:	read more

handle multi business balance sheet
Excerpt of query:	sir, I need some clarity regarding ITR-3 filing for a combination of incomes and business activities. Here’s my situation: Filing ITR-3 Sources of income: Salary Intraday trading (treated as speculative business) STCG from equity delivery (as a capital gain and not as a business) A separate business (as sole proprietor) with regular income and expenses Doubts: Personal Loan Disclosure: I had taken a ₹ personal loan from a bank during the year Feb 2024. It was used only for trading and equity investments, not for my sole proprietorship business. Do I need to show this loan in the Balance Sheet section of ITR-3 FY 24-25? If yes, should it go under the trading business only? Multiple Businesses in ITR-3: Since I have two separate businesses (sole proprietorship + intraday trading shown as business), do I need to report separate Balance Sheets and P&L for each in ITR3? Should I add two separate business codes under the “Nature of Business” section? Missed Loan Disclosure Last Year: I forgot to mention this loan in last year’s ITR balance sheet. I didn’t claim any interest expense on it. What should I do now? Should I revise the return or just include it in the current year’s ITR with proper notes? Additional Notes: I am not opting for presumptive taxation. I keep books of accounts for both businesses. No interest expense was claimed last year, but I may claim interest in the current year. read more

handle multi business balance sheet

Excerpt of query:

sir, I need some clarity regarding ITR-3 filing for a combination of incomes and business activities. Here’s my situation: Filing ITR-3 Sources of income: Salary Intraday trading (treated as speculative business) STCG from equity delivery (as a capital gain and not as a business) A separate business (as sole proprietor) with regular income and expenses Doubts: Personal Loan Disclosure: I had taken a ₹ personal loan from a bank during the year Feb 2024. It was used only for trading and equity investments, not for my sole proprietorship business. Do I need to show this loan in the Balance Sheet section of ITR-3 FY 24-25? If yes, should it go under the trading business only? Multiple Businesses in ITR-3: Since I have two separate businesses (sole proprietorship + intraday trading shown as business), do I need to report separate Balance Sheets and P&L for each in ITR3? Should I add two separate business codes under the “Nature of Business” section? Missed Loan Disclosure Last Year: I forgot to mention this loan in last year’s ITR balance sheet. I didn’t claim any interest expense on it. What should I do now? Should I revise the return or just include it in the current year’s ITR with proper notes? Additional Notes: I am not opting for presumptive taxation. I keep books of accounts for both businesses. No interest expense was claimed last year, but I may claim interest in the current year.

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