Your Taxes

My wife and I jointly own a house, which was wholly funded by me. We have let out the same. Can my wife show 50 per cent of the rental income in her income tax return? She has no other income.

Dominic

I understand that the property was purchased and registered jointly with your wife, though you paid the entire purchase price. Your wife is shown as a co-owner in the property that was purchased by you from your own funds. Therefore, you are the owner of the property in all respects and accordingly, the returns from the said property will be treated as your income. Hence, the entire rental income received by letting out that property shall be taxable in your hands.

I sold shares held for the long-term through the stock exchange in February 2014, paying STT. Is it mandatory to file a return and fill in the capital gains column in the IT form and show that they are exempt from tax? My income from savings and fixed deposits is less than the taxable limit and I am a senior citizen (74 years of age).

K Seshadri

According to the provisions of the Income Tax Act, equity shares are long-term assets if held for more than one year. Furthermore, any gain or loss arising from the sale of an equity share will not form part of total income if the sale is made after October 1, 2004, and Securities Transaction Tax (STT) has been paid on such sale.

I understand that you sold your equity shares in FY2013-14 after holding it for a period of one year, paying STT on the sale transaction. Hence, the gain or loss derived on such sale shall not form part of your total income.

An individual is required to file his tax return if his taxable income is more than the maximum amount not chargeable to tax. Based on the limited facts provided, since your taxable income is less than the maximum exemption limit of ₹500,000 applicable in the case of a senior citizen (greater than or equal to 60 years, but less than 80 years of age), you are not required to file an income tax return.

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