Together with my wife, I just bought an old apartment, and we both paid an equal portion of the price. On it, we spent Rs 5 lakh on stamp duty and registration. Can we deduct stamp duty and registration costs from our taxes? What papers will we need for the same? An individual or a Hindu Undivided Family (HUF) may claim a deduction for stamp duty and registration fees paid during the year in relation to a residential home property of up to Rs. 1.5 lakh under Section 80C of the Income-tax Act, 1961.
Along with other qualifying expenses including life insurance premiums, Provident Fund contributions, equity-linked savings plans (ELSS) investments, tuition for two children, and loan principal repayment, this deduction is allowed. Despite the fact that your combined shares of the stamp duty and registration fees total roughly Rs. 2.50 lakh, you may only each deduct up to Rs. 1.5 lakh from each other’s claims.
Since you are not permitted to submit any documents with your income tax return (ITR), if your case is chosen for closer examination, you may need to present a copy of the receipt you used to pay the stamp duty and registration fees as well as the agreement pertaining to the purchase of the property.
If I only have short- and long-term capital gains (LTCG) on Indian listed shares the previous year, how would tax be computed? Will I get a refund like salaried people who earn up to Rs 2.5 lakh before taxes?</p> <p>LTCG are taxed at a flat rate of 10% after the initial Rs. 1 lakh on which tax is charged at nil rate, making the initial Rs. 1 lakh of LTCG on listed shares tax-free in your possession. Short-term capital gains (STCG) in respect of listed shares are taxed at a flat rate of 15%. In relation to LTCG on listed shares, there is no indexation advantage available.
According to Section 87A of the Income-tax Act of 1961, you are eligible to get a reimbursement for the tax you owe on such STCG up to a maximum of Rs. 12,500. Please be aware that the Section 87A refund cannot be used to your tax obligation for LTCG on listed shares.
You would be required to pay tax on such profits after deducting the amount of the basic exemption of Rs. 2.50 lakh since you do not have any other sources of income. You cannot offset the basic exemption amount against capital gains related to listed shares if you are considered a non-resident for tax purposes.
We are a couple in our eighties. Our annual insurance premium for the health insurance we purchased is Rs. 38,000. What percentage of the health insurance premium we paid will be deducted? According to Section 80D of the Income-tax Act of 1961, a senior person may deduct up to Rs. 50,000 from the cost of family health insurance. You may additionally claim up to Rs. 5,000 in expenses that you incurred for annual preventative health exams within this total ceiling of Rs. 50,000. Since your premium does not exceed the threshold limit, you may deduct the whole Rs. 38,000 you paid in premiums as well as an additional Rs. 5,000 if you paid for a preventative health checkup for you or your spouse.
Expert in both taxes and investments, the author (Disclaimer: The author’s opinions are their own, and Outlook Money does not imply that it shares them. Outlook Money disclaims all liability for any direct or indirect harm done to any person or organisation.)