Latest news with #MukeshPatel
Time of India
2 days ago
- Business
- Time of India
Shocker for NRIs: Property sales now trigger steeper taxes
Ahmedabad: Non-Resident Indians (NRIs) selling real estate in India after July 23, 2024, are facing an unexpected tax shock while filing income tax returns. Due to changes in the long-term capital gains (LTCG) tax structure in the last budget, many are now staring at significantly higher tax outgo — a direct result of losing the benefit of indexation. Under the revised regime, NRIs are taxed at a flat 12.5% on LTCG without indexation — which means they cannot adjust the property's purchase price for inflation. Earlier, a 20% LTCG tax with indexation applied to all taxpayers, but the benefit has now been retained only for resident Indians. "Many NRIs are unaware of this change and are surprised when faced with high tax liability at the time of return," said Karim Lakhani, a chartered accountant based in Ahmedabad. "They can deduct only the original purchase price and cost of improvement of the property from the sale amount and must pay 12.5% tax on the entire gain, without any inflation adjustment. This sharply increases their effective tax liability. However, their TDS rate has been reduced to 12.5% from earlier 20%. Many face huge tax because there might be ancestral property as well," he said. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad The confusion doesn't end there. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Utilise the same robust diesel/LPG forklift but in electric! Clark Equipment Learn More Undo Resident Indians with jointly held properties are also seeing inflated figures in their Annual Information Statement (AIS), the digital tax record that reflects financial transactions. Tax experts report that the AIS often attributes the entire sale amount to each co-owner. "If three brothers sold a property for Rs 1 crore, the AIS for each of them shows Rs 1 crore instead of Rs 33.33 lakh," said said Karim Lakhani, a chartered accountant based in Ahmedabad. Mukesh Patel, international tax expert said, "Similarly, in the case of joint bank accounts between spouses, the same income or transaction is reflected in both AIS records, effectively doubling the reported amount." He said, "Taxpayers must check their AIS carefully and raise feedback wherever the entries are inaccurate." The changes to LTCG tax rules were introduced as part of the central government's effort to simplify the capital gains regime. While resident individuals now have the option to choose between the older structure (20% with indexation) and the new flat 12.5% tax without indexation, NRIs have no such choice. As income tax filings peak, both residents and NRIs are being advised to consult tax professionals and carefully verify their AIS entries, particularly for property sales and large joint transactions, to prevent surprises or disputes with the tax department. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and s ilver prices in your area.
Time of India
31-07-2025
- Business
- Time of India
ITR filing alert: Rebate on market gains allowed, but not auto-applied
Ahmedabad: Filed your ITR and surprised by a tax bill despite being under the Rs 7 lakh limit under the new tax regime? You're not alone. The income tax portal isn't auto-applying the 87A rebate on stock market gains—but the good news is, you can still claim it manually, say tax experts. To illustrate, if a resident individual has a regular income of Rs 5 lakh and short-term capital gains of Rs 75,000, the tax liability would be Rs 10,000 on the regular income and Rs 15,000 on the STCG (taxed at 20%). The utility currently applies the rebate only to the Rs 10,000 from regular income. However, if the taxpayer manually enters a rebate of Rs 25,000, the system accepts it — effectively reducing the net tax liability to zero. "It is good to note that the Income Tax Department appears to have accepted, in principle, that an eligible taxpayer should be entitled to Section 87A rebate even on capital gains," said Mukesh Patel, international tax expert. "However, this relief should have been auto applied by the ITR utility rather than requiring taxpayers to manually make the claim." You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad The debate over the applicability of the Section 87A rebate on capital gains first surfaced during ITR filings for AY 2024–25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People Born 1940-1975 With No Life Insurance Could Be Eligible For This Reassured Undo The confusion centred on whether the rebate was available on STCG from equities under Section 111A and long-term capital gains (LTCG) under Section 112. On July 5, 2024, the Central Board of Direct Taxes (CBDT) instructed the Centralised Processing Centre (CPC) to block such rebate claims in the utility. Taxpayers, however, argued that there had been no change to the language of Section 87A that could justify denial of the rebate. Their argument gained further strength when the Finance Act, 2025, formally amended Section 87A—but only with prospective effect, starting AY 2026–27. This, experts say, effectively vindicates the position that the rebate on capital gains is still valid for AY 2025–26—provided taxpayers proactively claim it while filing their returns.
Hindustan Times
06-06-2025
- Business
- Hindustan Times
Gujarat diamond trader donates jewellery worth crores to Ayodhya Ram Temple
A Gujarat diamond merchant has donated a lavish assortment of ornaments, including 11 crowns and a golden bow and arrow, to the Shri Ram Janmabhoomi Teerth Kshetra Trust in Ayodhya. According to Vishva Hindu Parishad (VHP) officials, the contribution includes 11 diamond-studded crowns, 30 kilograms of silver, 300 grams of gold, and rubies, along with a host of other ornate items. Dinesh Newadia, national treasurer of the VHP, revealed that the donation also features necklaces, earrings, ornamental forehead tilaks, seven bows (four large, three small) representing the brothers of the Ramayana, four quivers, three maces, and ceremonial fly whisks. "Mukesh Patel has donated 11 crowns made of diamonds, 30 kilograms of silver, 300 grams of gold, and rubies," Newadia claimed. The items were flown to Ayodhya in a special chartered aircraft. Mukesh Patel, who owns the Surat-based jewellery firm Green Lab, is well-known in the diamond trade and has previously supported religious and cultural initiatives. This latest donation, however, is among the most significant individual contributions made toward the ornamentation of the Ram Temple. The announcement comes just a day after a major milestone at the temple - the consecration of 'Raja Ram', or Lord Rama in his royal form. The ceremony included the installation of idols in eight newly constructed temples within the Ram Janmabhoomi complex and was attended by Uttar Pradesh Chief Minister Yogi Adityanath. This was the second major consecration ceremony at the site, following the January 22, 2024 installation of Ram Lalla, which was graced by Prime Minister Narendra Modi. The consecration ceremony has drawn large crowds to the sanctum sanctorum of the temple. Champat Rai, Secretary of the Ram temple trust, said that on Thursday, the temple completed the consecration ceremony of seven idols. He stated that the idols installed on the first floor above the sanctum sanctorum include Ram Darbar in the middle, a Shivalinga in the north eastern corner, a Ganapati idol in the southeastern corner, Hanumana idol in the middle of the southern side, Surya in the south western corner, Bhagwati in the north western corner, and Annapurna Mata in the middle of the northern side.
Time of India
02-06-2025
- Business
- Time of India
Details must to claim exemptions, deductions in new ITR
Ahmedabad: Taxpayers, especially those under the old regime, will need to provide comprehensive information while claiming exemptions and deductions in their income tax return (ITR) for the assessment year 2025-26. The ITR utility is now available, and tax experts have stated that submitting detailed information has become compulsory. This includes insurance company names, policy numbers, housing loan particulars, actual house rent allowance (HRA), and rent payments. Additional requirements include information on landlords for HRA claims, registration numbers of political parties for donation deductions, and other relevant details. For medical treatment deductions, specific ailment details are now required. Tax experts indicate that this unprecedented requirement for detailed information aims to prevent fraudulent deduction claims. International tax expert Mukesh Patel said, "This year, the income tax department made it mandatory to disclose various details for all the exemptions and deductions, especially under the old regime. The department aims to stop fake deduction claims. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Banheiro escorregadio? Barra de apoio vira febre no Brasil Evite quedas e escorregões Saiba Mais Undo Based on the details submitted in the ITR by the taxpayers, the department will cross-check such deductions." With the ITR filing deadline extended to Sep 15, taxpayers must collect all necessary documentation. Chartered accountant Karim Lakhani said, "For claiming HRA exemption, the taxpayers will have to give details of the place of work, actual HRA received, actual rent paid, apart from landlord details. For claiming a deduction for insurance premiums under section 80C, the taxpayer is required to submit the policy number or receipt number. Similarly, for the deduction for PPF account, the taxpayer will have to mention the account number in the return. Also, for claiming a deduction for health insurance, the name of the insurance company and policy number must be submitted." Tax authorities have noticed numerous instances of false deduction claims due to minimal documentation requirements. According to experts, taxpayers should gather all the required information for filing ITR so they can claim various deductions and exemptions easily. Box: Additional details to be provided For HRA exemption: The taxpayer will be required to provide details about the actual HRA received and the house rent paid Under Section 80C: The taxpayer must provide the document or receipt number of the insurance policy and the PPF account number Under Section 80D: The name of the health insurance company and the policy number must be provided For home loan interest deduction: The taxpayer will need to give details of the lender, loan particulars, and the outstanding amount Treatment of diseases: To claim a deduction for the treatment of a specific disease, details of the disease will have to be provided
Time of India
07-05-2025
- Health
- Time of India
A tax expert's journey to saving lives
Ahmedabad: The presidential honour for Mukesh Patel recognises his role in establishing the Ahmedabad Red Cross Shatabdi Bhavan , acknowledged as India's largest blood centre with state-of-the art facilities. He has spearheaded the Thalassemia Care, Awareness & Prevention (CAP) Mission since 1983, providing free life-saving transfusions to over 1,200 children suffering from blood about his inspiration behind championing voluntary blood donation and thalassemia care, Patel told TOI, "Blood donation is the only gift that costs nothing to the donor but means a whole world to someone in need. You do not have to be a doctor to save a life, just donate blood."Ahmedabad has earned recognition as the blood donation capital of India and global hub of centurion blood donors under Patel's leadership. The city boasts 138 centurion blood donors, including all five of India's women centurions, three double centurions, India's first centurion couple and first differently abled an international tax expert by profession, Patel has donated blood in 25 countries worldwide. "My globetrotting gave me ample opportunities to visit leading blood banks around the world, donate blood, study their blood donation promotion, interact with experts and in the process nurture innovative ideas and strategies for fruitful implementation," he innovative approaches include "instilling the feeling of pride and participation through blood donor recognition, setting up of diverse activity hubs and clubs, launch of our imaginative mascots Sherdil and Caredil, motivational songs on Raktdaan and showcasing the creative Blood-o-pedia, Thalas-e-media and Jeevan Utsav".
