1.

I have a flat which I want to sell and buy a new flat which will be bigger in area. What are my tax implications especially with regard to capital gains?

On the proposed sale of your flat you may purchase another flat within two years of the date of sale of the original flat. If you have invested the entire amount of capital gain irrespective of your area of the flat, you would not have to pay any capital gains tax.

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2.

When a flat is gifted to a daughter what are the legal implications regarding: i) Title- and how is this established. ii) Gift tax- is it leviable and if so when?

If one has gifted a flat to his daughter one should have the gift deed drawn out which should be witnessed by two persons. In case of both the donor and the done it is preferable to register the said gift deed even if the flat is in a co-operative society. Stamp duty would have to be paid on the gift deed which would be the same as in case of the sale of a flat. However, there is no gift tax applicable. The gift deed would be the title document indicating the gift to the daughter along with the share certificate if it is in a co-operative society.

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3.

How to appeal for reduction of property tax if you are an individual in a society?

If property tax has been levied which you feel ought to be reduced, you should write to the society stating your reasons for the same. The society would take up the matter with the Municipal Authorities and have the same reduced if the same is justified.

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4.

Can I maximize the Tax Benefits if I buy a house jointly with my spouse?

Yes, the tax benefit will be separately available to both of you. When a residential property is owned by two or more persons and your respective shares are definite and ascertainable,( ie. The joint ownership is in an agreed ratio) then, each co-owner's share of the income from house property will be included in his/her total income at the time of filing returns.

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5.

What are the Tax implications of sale of any residential / commercial property?

You will be liable to pay tax on the profit arising from the sale of a property, which comes under Capital Gains.

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6.

Are incidental charges like registration, brokerage fees etc. deductible from the profit arising on the sale of property?

These incidental charges are allowable expenses which come under Capital Gains and thus, they are deductible from profit arising on Sale.

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7.

Can I gain exemption from Tax on Capital Gains?

The Income Tax Act has made provisions u/s 54 and 54EC whereby you can claim exemption from tax on Capital Gains. The exemption is available on re-investment of the Capital Gains in specific assets by the assesses.

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8.

Does the Income Tax Act offer any special incentives for the purchase of residential property by obtaining finance either from banks or other financial institutions?

Under Section 88 of the Income Tax you can claim benefit for the principle repayment, Interest on loan is deductible u/s 24 from Income from House Property.

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9.

Is it advisable to keep house property for more than three years?

Yes, it is always advisable to keep a house property for more than three years in one's possession as it will be considered as long term capital assets, and the owner will get the benefit of indexation and the benefits linked with the purchase of new house property.

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 10.

What are the Tax benefits that are available if one avails of a Housing Loan?

Tax Benefits are available in Housing Loans under Section 88 and Section 24 of the Income Tax Act.

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