Income Tax: Do you need to disclose property sale in ITR even in case of no capital gain? Find out here

While filing income tax returns, you have to disclose income from all sources irrespective of the amount, otherwise, at the time of return processing, you could fall in trouble with the income tax department in case of any mismatch. Furthermore, if capital gains arising from the transfer of a long-term capital asset are utilised for investing in specified funds, the taxpayer is entitled to claim tax exemption under Section 54EE, provided certain conditions are met. One needs to disclose the cost of acquisition, sale consideration, and the resultant capital gains on account of sale of property. The aggregate investment in the financial year and the subsequent financial year is limited up to Rs 50 lakh.

Where capital gain arises from the transfer of a long-term capital asset, the taxpayer is able to claim deduction under Section 54EC, by investing the gains in specified assets such as bonds of REC/NHAI, within a duration six months from the date of transfer. According to the provisions of the law, Section 54EC and Section 54EE are not mutually exclusive.

Under Indian income tax laws, income generated from futures and option trading is classified either as a “business income” or “income from other sources”. If the transactions are of regular frequency, then such gains/losses are considered as business income.

If these are one-off transactions, then such income/loss may be classified as income from other sources. If considered as business income and transacted on a recognised stock exchange, the income earned from trading of derivatives are taxable as non-speculative business income for income tax purposes (normal business income) and are subject to tax audit if the turnover is above Rs 1 crore.

What are the deductions on higher education loans?

As per Section 80E, anyone who takes a loan from any financial institution or approved charitable institution to pursue higher education, whether in India or abroad, can claim deduction on the amount of interest paid for a consecutive period of eight years, starting from the assessment year in which he/she has commenced paying  interest on the loan or until the assessment year in which the interest is paid in full, whichever is earlier. Education loans can be taken for spouse, self, children or student for whom you are the legal guardian.

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