As in your case, you would be getting a house property against the consideration, the exemption from deduction of TDS may not apply
I am purchasing immovable property and am paying a deposit to a property developer. The only asset held by the developer is agricultural land in a rural area for the property development. It has been many years and the land has not been able to be re-zoned by the DDA and may never be. Can I avail the TDS exemption relating to "agricultural land in a rural area?"
– Fahmida Khan
From your query, we understand that the payment of deposit is being made for purchasing a house property, that is, flat/ floor/ building and the land appurtenant thereto and not just a part of the agricultural land. The purchaser of any immovable property is required to deduct tax at source (TDS) @1% if the consideration for such purchase exceeds Rs 50,00,000.
However, no TDS is required to be deducted if the property purchased is agricultural land. As in your case, you would be getting a house property against the consideration, the exemption from deduction of TDS may not apply.
In 2018 I donated money to an NGO for which I got the receipt. Can I submit that to my employer as part of my tax-saving for this year?
– Santosh Krishnan
Any amount paid as donation to the certain relief funds and charitable institutions can be claimed as deduction while computing the income chargeable to tax. However, if the amount of donation exceeds Rs 2,000, the deduction shall be allowed only if the payment is made by a mode other than cash. Though , the tax payer may furnish the payment proof to the employer at the year-end.
However, in terms of the CBDT circular, the employer may not consider the same and allow deduction while computing tax on the total income in respect of any donations made admissible under 80G. The same can be claimed while filing the return of income.
If I take a top-up home loan on my existing home loan, will I get tax benefit on that?
Tax benefits in the case of top-up loans depends upon the end usage of the funds. If the funds are borrowed for undertaking repair/ renovation or alteration of the property, only the interest payment would qualify for deduction while computing income from house property for the relevant year . Whereas, in case if the loan proceeds are used for construction or purchase of a house property, then deduction will be available in respect of interest while computing income from house property and for the principal component under 80C while computing total income for the relevant assessment year up to the threshold limit as prescribed.
Chirag Nangia, Director, Nangia Advisors LLP
Send your queries related to personal tax to personalfinance@dnaindia.net.
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