Anand Tibrewala is a CA and Senior Partner at the leading Chartered Accountancy firm, AD & Company
We are two brothers. We stay along with our mother. Our house is in our mother’s name. Can we sell this house and buy two new houses in our name? Also please let us know the tax implications.
—Dilip Pawar, Bandra
Yes you can definitely buy the two new houses. For tax implications purpose, if your mother has only this house she can sell it and invest the amount received in two houses u/s 54F. In case she transfers the house in your name, you would be liable to pay stamp duty and such other expenses for transfer. Rather you should have your name as a nominee. Hence in future after your mother, the house would be in your name and you would not be liable to pay any additional sum of money.
My salary income is more than Rs. 15,00,000/- p.a. Would I be liable to get my returns digitally signed?
—Vibha Patil, Chinchpokli
All persons liable for tax audit are required to get the returns digital signed. Salaried persons are exempt from this category. Hence you would not be liable to get return digitally signed.
What is the maximum number of years for which I need to retain my books of accounts for tax purpose?
—Beena Goshalkar, Dadar
There are different period for retention of books of accounts for different laws. For tax purpose records of books of accounts should be retained at least for 6 years. Also, as per budget 2013-14 if you have any assets outside India, then you should maintain the records of such assets for at least 16 years.
If you have any Tax Query email it to us at [email protected] and we will find you a solution.