Photo: iStock
Photo: iStock

Individuals with more than one house cannot use ITR-1 form to file taxes

As per the tax return forms notified by the income tax authorities for the said FY, individuals who own more than one house property are not eligible to file their tax return using ITR-1 form

I have a let out property with an annual rent of 1.5 lakh and there is no home loan on this property. I have another self occupied property for which I have the interest component home loan as 2 lakh. I was trying to update this in ITR-1 (the home loan interest component for second property and the rent for the first property); however in ITR-1, either a “self occupied" or “let-out" property information can be updated and both cannot be updated simultaneously. Kindly let me know if there is a way to update both these information in ITR-1 form.

—Narayanan PS

It is presumed that the income belongs to the financial year (FY) 2018-19. As per the tax return forms notified by the income tax authorities for the said FY, individuals who own more than one house property are not eligible to file their tax return using ITR-1 form.

Accordingly, you would be required to file your tax return using ITR-2 form (assuming that you do not have any income from profits and gains of business or profession) or any other form as relevant to you (based on your other sources of income) and fill the Schedule HP (income from house property), with the details in respect of both the house properties.

I was reading about the details of tax applicable on sovereign gold bonds. However, I need some more clarity. Is the LTCG exempted to Hindu undivided family (HUF) as well or only to individuals? If we purchase the gold bonds from market (secondary market) and redeem the same on maturity, will these be exempted from LTCG tax irrespective of the holding period? Kindly clarify.

—Dharmender Bhayana

As per the provisions of Section 47(viic) of the Income-tax Act, 1961, (the Act), where an individual transfers sovereign gold bond (SGB) issued by the Reserve Bank of India under the Sovereign Gold Bond Scheme, 2015 by way of redemption, the said transfer is not regarded as a taxable transfer. Accordingly, only for an individual, any amount received on redemption of the above referred bonds, at the time of redemption or maturity is not taxable, irrespective of the holding period or mode of acquisition of the bond. Similar benefit is, however, not available to an HUF.

For an individual, if SGBs are redeemed on maturity, the said redemption is not regarded as a taxable transfer, irrespective of mode of acquisition (i.e. subscribed initially or acquired in secondary market) or period of holding.

Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India. Queries and views at mintmoney@livemint.com

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