Finance Buddy

  Welcome to the Reader’s Query segment of FE Money. Last week, Debopriyo Bhattacharyya asked us whether he would be liable to pay any taxes on the balance amount he may get after selling his flat and closing the home loan . Debopriyo had purchased a flat worth Rs 38 lakh in 2017 for which he had taken a home loan of Rs 30 lakh. He has been regularly paying the monthly EMI since 2017 and also claiming  tax  deductions applicable on the home loan interest and principal. Gaurav Mohta, Chief  Marketing  Officer at HomeFirst Finance and Sujit Bangar , Founder at Taxbuddy.com have answered Debopriyo’s query. Gaurav Mohta says: When you sell a property, you are liable to pay capital gains tax on the indexed profit (Long Term Gains [LTCG] tax @20% in your case, as the holding period is greater than 24 months). For indexed profit calculation, you would need to adjust for inflation using the Cost Inflation Index (CII). You can also include the cost of improvement/tr...

The income tax department has launched a new feature on the income tax   e-filing  website that allows an individual to pay income tax later. This means that an individual can continue to file ITR without paying the pending income taxes first. Once the ITR is filed, then the income tax amount can be paid, albeit with some conditions. Earlier the ITR could only be filed once the due taxes were paid. “Income tax department has given an option of pay later when we file income tax return (ITR) . Therefore, an individual can file an ITR without paying income tax dues first by using the pay later option,” said CA Abhinit Singh, Founder, Ready Accountant, a Kolkata-based educational institution. Read below to find out how to use the ‘Pay Later’ option on the Income Tax Department’s e-filing portal. Pay later facility is available for this tax payment According to Mihir Tanna, Associate Director (Direct Tax), S K Patodia & Associates, a Mumbai-based CA firm, “The ‘Pay...