Comments
During the current fiscal (2013-14), I incurred a short term loss of Rs 1,80,000 by selling shares. I also sold a flat which was in my name and made a long-term capital gain of Rs 11,00,000 (after indexation). Can I adjust the short-term loss incurred during the sale of shares against the long-term capital gains made by selling the flat?
— R.V.R.K. Raju
According to the provisions of the Income Tax Act, 1961, adjusting loss incurred from one source is allowed with income earned from another source/ head, subject to specific conditions. Short-term capital loss incurred during a financial year can be adjusted against any capital gain (short-term or long-term) arising during the same year. However, long-term capital loss can only be adjusted against long-term capital gains. You can, therefore, set off the short-term capital loss of Rs 1,80,000 against the long-term capital gain of Rs 11,00,000 earned during the same year.
I am renting a house for Rs 19,000 per month. This house is on company lease. My company pays the rent directly to the owner, but after TDS of 10 per cent. The company states that it will give Form 16A and based on this the landlord can get refund. This is the landlord’s only income. So, can she submit Form 15G asking the company not to deduct TDS? Does she have to submit this to the company or I-T department?
— Lydia
Form 15G is a self-declaration form to be made by a resident individual/ person (not being a company or a firm), claiming certain receipts without deduction of tax. However, rental income does not fall under the purview of the said form. Therefore, even if your landlord submits Form 15G to your employer, the company would remain statutorily bound to deduct tax at source from the rent payments as the amount of rent paid exceeds Rs 1,80,000 in a financial year.
Please note that your landlord can make an application in Form 13 to her assessing officer, for grant of certificate for lower/no deduction of tax at source. The said certificate can then be submitted to your employer and he will not deduct tax at source from the rent payments made till the validity of that certificate. This would help your landlord get the income with no or limited deduction of tax at source.
Mail your queries to >taxtalk@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.