Three years ago I got a tax demand for Rs 25,000. After that I went abroad and ignored it and did not file any ITR. Now I have returned to India. Will I have to pay it to file ITR from this financial year?
Any amount payable in a notice of demand, is required to be paid within 30 days of the service of such notice. Upon failure to pay the whole or part of the demand within 30 days, a taxpayer is treated as an “assessee in default” for the amount unpaid.
You shall be liable to pay the outstanding demand along with simple interest at the rate of 1% for every month or part of the month for the period of default. Non-payment of tax demand also attracts penalty and prosecution along with proceedings for recovery.
I plan to sell some of my wife’s gold jewellery for part payment for a flat. Do I have to pay tax on the gold sold?
Income arising on sale of capital assets is liable to tax under the head ‘income from capital gains’. However, long-term capital gains from sale of jewellery is exempt from tax if the sale proceeds are utilised for the purchase of house property subject to conditions prescribed in Section 54F.
The new residential property must be purchased either one year before the sale or two years after the sale of the jewelry or constructed within three years from the date of sale. This exemption can be availed only if you own not more than one house property on the date of transfer of jewelry.
You cannot buy for two years or construct for three years any other house property, otherwise the exemption shall be reversed. You must also not sell the new house for a period of three years from the date of its acquisition.
I got an email that my ITR has been processed u/s143(1) for AY 2019-20 and refund credited in my account. Now, I have received two mails regarding Section 154. What I understood is that there’s a refund of Rs 10 payable to me. What should I do now?
Rectification under Section 154 is done to correct mistakes apparent from record. The I-T department may itself propose to rectify an obvious mistake in assessment orders/ intimation. A taxpayer is required to supply his acceptance/ rejection of the proposed rectification on the I-T portal itself.
In case no response is submitted, it shall be deemed that you have accepted the adjustment. If you feel that refund has been wrongly recomputed at Rs 10, you can file a suitable response on the portal.