Income tax

By Chirag Nanjia

My mother is elderly and has not submitted a PAN to the bank and has been deducted income tax on her FD for the past 3 years. How do we get a Form 26 AS or Form 16 for income tax deductions on FDs?
– Sudakar

The bank is responsible for deducting tax at the source on the interest earned on fixed deposits. After that, the bank is obligated to file the withholding tax return, in which it has to report the withholding tax against the PAN of the deductible. This information received by the IRS is reflected on the deductible’s Form 26AS, enabling him to claim this tax deduction from his final tax liability, at the time the income return is filed. Since you have not submitted a PAN to the bank for the past 3 years, the withholding tax returns submitted by the bank will indicate that the “Tax Account Number is not available”. Accordingly, the withholding tax will not be reflected on your Form 26AS and it will not be possible to claim the withholding tax credit.
Even if you file a PAN now and the bank has revised their TDS return to reflect the tax deduction against your mother’s PAN, you cannot claim the credit because the TDS credit has expired if not claimed while filing the revised return/return for the relevant assessment year, which has expired in your case . However, from now on, the Form 26AS can be downloaded by clicking “View Form 26AS” under the “Electronic File” tab of the Income Tax Electronic Filing Portal. Form 16 is a certificate of withholding tax which the bank has to submit to the deductor after the withholding tax has been successfully deposited with the government.

I bought an apartment two years ago. If I sell this and buy a new apartment, can I get any stamp duty benefits?
— Prasanna Sally

Assuming you have held the property for longer than 24 months, the capital gain on sale is classified as long-term capital gain (LTCG). To calculate the LTCG, the indexed cost of acquisition, the indexed cost of improvement and expenses (incurred entirely and exclusively in connection with the transfer) are deducted from the sale proceeds. Calculated LTCG is taxed at a rate of 20%.

There are no lien provisions for stamp duty payable at the time of purchasing another residential property, when one is sold. However, capital gains are tax deductible if you buy another home within a year or two before the transfer date. In the case of construction, the time limit is three years.

The writer is director Nangia Andersen India. Send your inquiries to fepersonalfinance@expressindia.com

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