Inherited Property? Here’s How To File ITR

Inherited Property? Here’s How To File ITR

Inherited Property? Here’s How To File ITR

Given that most Indians pass on their wealth and property to their legal heirs, it must for them to furnish the details about such assets when filling the Income Tax Return (ITR). If you have also inherited a property, here is a look at how you could file the ITR.

Things to know

*Even after the death of a homeowner, assets passed on from him/her to legal heirs, rather, the income generated from these assets must be shown by the legal heir. Section 159 of the Income-Tax Act suggests that the legal representative is liable to pay the tax that the original owner would have paid if he/she was alive.

*Legal heirs must pay only as much income tax as is his share in the assets bequeathed to him.

*The returns have to be filed in two parts- one where the income of the deceased is calculated and second, wherein after the death, the legal heir starts earning from these assets. Do remember that the pre-death returns that need to be filed should be done by the legal heir. Therefore, if the assesse died in February 2017, the returns have to be filed on his behalf by the heir and pay the tax from April 2016 to February 2017. Thereafter, the legal heir can file his own returns because the income borne out of the property is his alone.

How to file

Once you log on to https://incometaxindiaefiling.gov.in , go to the account of the deceased and add or register yourself as a ‘representative’. You would get this option under the ‘My Accounts’ Section. Note that this is a ‘New Request’ and that you must register yourself as a ‘Legal Heir’. You would be asked to proceed with details about the deceased such as his or her name, PAN and date of death. Keep a scanned copy of both the deceased and the yours handy as well as a copy of the death certificate and the registered will, family pension certificate as well or a letter issued by the bank that could confirm whether you are the nominee. All these copies have to be uploaded in a zip file not exceeding one megabyte (1MB) in size.

After submitting, a transaction ID and an acknowledgement would be generated. Once verified, the legal heir would be able to use all the services on behalf of the deceased through his own e-filing account. Thereafter, he must file the return on the deceased’s behalf. The legal heir would also have the option of choosing the PAN card of the deceased through a drop-down list. In the income-tax return do prefix ‘Late’ in the deceased’s name.

What to know about inheritance tax

Such a tax was abolished in 1986 therefore you are not liable to pay taxes on gifts on inheritance. But, you must remember the following:

*If the legal heir sells his inherited property, then capital gains tax comes into play. For this purpose, the cost of acquisition of the inherited property to the deceased shall be considered as the cost of acquisition by the heir. The period of holding by the deceased also counts.

*If the income of the heir including his inheritance exceeds Rs 50 lakh, then the heir is liable to provide details of all his assets and liabilities. Check Schedule AL.

*Income from capital gains tax is reported under Schedule Capital Gains in the ITR Forms.

*Looking for a tax refund? You would be required to fill details of your joint bank account for easy refund. If you do not have one with the deceased, then, the Centralized Processing Centre or CPC shall verify details and refund the amound in your name.

*If the heir has succeeded to the business of the deceased, then the heir also has to take up the loss incurred by the deceased which cannot exceed eight assesment years.

*Do remember to surrender the PAN card of the deceased after all filing and returns.

How Fulfilling Is It To Become A Young House-Owner?

How Fulfilling Is It To Become A Young House-Owner?

 

 

 

 

 

 

 

 

YOUNG WORKING MEN AND WOMEN ARE A MAJORITY OF HOME BUYERS NOWADAYS AT SILIGURI !!

Gone are the days when people used to exhaust their lifetime’s savings and buy homes in all-cash deals towards the dusk of their lives. Back then, taking a loan to finance property purchase was unheard of. By comparison, young working men and women today are a majority of home buyers every year. To become homeowners, people now don’t have to wait till they grow old; easy availability of home loans in the market has done the trick. If one has the means and the inclination to own a house, who wants to live in a rented accommodation, anyway?  These were the thoughts that drove Sumit Shah, 29, an employee at a leading Bank at Siliguri, to book a 2BHK house in an upcoming housing complex. Shah patiently paid rent as well as the EMIs (equated monthly installments) till the time he did not get the possession. He argued with himself that he is saving a lot of money by availing of tax benefits on his home loan interest every time doubts started clouding his head over the viability of the purchase.  He was a homeowner, Shah would remind himself. He would also remind himself of all the troubles his father Jamuna Lal Shah faced because his and his family had to shuttle between rented accommodations throughout his working career.

Homebuyers these days compare the beauty of being a young home owner with the trouble of living in rented houses throughout their lives. The conspicuous benefits are enough to invest in real estate, without giving much thought to the fact that the hurry is going to cost them dear. No doubt, the joy of living in your home is matchless. But, the flip side is that you have to be mentally prepared to spend a large part of your life, including the youth, under debt. Also, remember that the house still becomes yours only at the end of your 20- or 30-year loan tenure, when you have repaid every penny you owe your bank.

Another aspect to remember is that by the time you become an owner of, say, a 2-BHK unit in a highrise, you might start finding it increasingly difficult to live in an urban set-up. The traffic on the road and elevators in your building might give you discomfort. It is possible that as an older person you would want to have a home in a comparatively small city.

While it is good to own a house at any point in life, it is advisable that one thinks long-term before any investment that has so many financial and sentimental values attached. You should consider all the pros and cons of living in the place where you are buying the property, the features of the property itself, the amount that the property is going to cost you, and then take an informed call.

Visit www.siliguriproperties.com for the best properties at Siliguri or call 99330 22222

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