I bought a flat for which the sale deed was registered in December 2012 and possession given in November 2014. Please let me know if long-term capital gains tax will be applicable from the date of making the sale deed or the date of possession if I decide to sell off the property.

V Chandra Shekher

It is pertinent to note that to bring the case within the ambit of Section 2(47)(V) of the Income Tax Act, 1961 read with Section 53A of the Transfer of Property Act (which defines the meaning of the term ‘transfer’ in case of possession of any immovable property to be taken or retained in part-performance), the twin conditions of execution of written document and handling over the possession have to be cumulatively satisfied. In your case, the twin conditions are satisfied only in November 2014 and hence the capital gains tax would be applicable only during the FY 2014-15. Reliance in this regard could be placed on the Delhi High Court ruling in the case of CIT Vs Delhi Apartments Pvt Ltd (ITA 569/2012) .

However, in case the property was ready for occupation during December 2012 (sale deed registration month) and the flat could not be occupied by you on account of interiors/vacancy, then the capital gains tax would be applicable effective December 2012. It would be prudent to engage a tax expert to analyse the specific facts as also the contents of the agreement in detail before a conclusion is reached.

After having completed 15 years with the PPF account, I have extended it for another five years. Can I keep on extending the account every five years? No withdrawals have been made till date. Can I make yearly withdrawals for my living expenses? Is there any limit on the amount that can be withdrawn and the number of withdrawals each year?

Kuriakose MK

Yes, you can keep extending the PPF accountin blocks of five years beyond the maturity period. You can withdraw from the extended PPF account every year. The amount that can be withdrawn would depend on the extension type selected by you, that is, with or without contributions.

If you have extended the account without further contribution, there is no restriction on the amount that can be withdrawn. However, if you have chosen to extend with continued deposits, you can withdraw up to 60 per cent of the balance at the beginning of each extended period (block of five years). Please note that only one withdrawal can be made per year.

I am a senior citizen. I e-filed my IT return for the AY 2014-15 on September 4, 2014. Due to a mistake when pressing the keys during e-challan payment, I paid tax in lakh instead of thousands. There is a refund due of ₹2,30,940. CPC says return is being processed. What should I do?

Surendra Agarwal

We understand that you have inadvertently remitted tax in excess of the liability due. You could contact CPC, explain the situation and seek early processing of your return. Alternatively, you could meet your jurisdictional assessing officer and seek assistance in getting the refund. For this purpose, CPC would have to forward your return to the officer who could in turn process the same and grant refund.

The writer is Partner, Deloitte Haskins and Sells LLP. Send your queries to taxtalk@thehindu.co.in

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