Income tax
Vivek Laddha
(Querist) 04 October 2016
This query is : Resolved
One assessee has received the notice for income tax and the tax recovery is much likely.
He has 2 assets i.e. House (Market Value-40 Lakhs with Home Loan=12 Lakhs) and car bought in 2013, but not the money in hand and bank.
0)Can the client transfer his home to wife before Income tax applies provisional attachment?
1) What can be the issue to bank?
2) What can be the issue to Income Tax?
3) Can Income tax apply attachment provision retrospectively?
4) Could the Income tax department attach the property even after transferred to wife?
Kuummaar AS
(Expert) 04 October 2016
Dear Laddha,
These details are not sufficient to render proper advice.
Please elaborate.
Rajendra K Goyal
(Expert) 04 October 2016
You have not replied, how are you related?
0) Without clearing Bank loan, house may not be transferred in others name.
1) Bank will not give NOC, Bank can not allow disposal of mortgaged property till its loan paid.
2) It can attach house.
3) Broadly yes, However, can discuss with local tax consultant in detail.
4) Transfer would not be valid in the given circumstances.
Guest
(Expert) 04 October 2016
Income tax this subject is better handled by CA
Same company which has hosted this website has CA Forum try there
www.CAclubindia.com
Vivek Laddha
(Querist) 04 October 2016
Thank you. I am friend of him. Actually he is not able to pay the money which he will be required to pay as tax of INR 75 lakhs.
So he wants to transfer his assets to her wife. Will the bank agree to transfer the same in her wife's name subject to his continuance as borrower?
If it happens whether any provision exists to nullify the transaction in law?
Kuummaar AS
(Expert) 04 October 2016
Dear Laddha, You have said in your posts the following:
1. "He has 2 assets i.e. House (Market Value-40 Lakhs with Home Loan=12 Lakhs) and car bought in 2013, but not the money in hand and bank."
2. "I am friend of him. Actually he is not able to pay the money which he will be required to pay as tax of INR 75 lakhs."
CAN YOU EXPLAIN HOW HE IS REQUIRED TO PAY TAX OF RUPEES 75 LAKH ON A HOUSE OF RUPEES 40/- LAKH WITH LOAN OF RUPEES 12 LAKH AND A CAR?
IN CASE TAX OF RUPEES 75 LAKH IS FOR SOMETHING ELSE, WHY DO NOT YOU COME OUT WITH FULL DETAILS?
Vivek Laddha
(Querist) 04 October 2016
He had been a startup earlier. It is not the tax on asset rather tax on income. But he wants to dispose the remaining asset with him to avoid the tax recovery.
INR 75 lakhs is expected tax burden he might face.
Kuummaar AS
(Expert) 04 October 2016
It appears strange from the following statements of Author Laddha
1. "INR 75 lakhs is expected tax burden he might face."
2. "It is ......... on income."
3.. "but not the money in hand and bank."
WHERE IS THE INCOME ON WHICH RUPEES 75 LAKH IS THE TAX?
Vivek Laddha
(Querist) 04 October 2016
Sir, with due respect to you, do not be strange.
Anyway let me further clear this. TDS has not been deducted on income, ITO shall disallow the same as per Section 40. So all the expenditure shall be added to him. So it will bring the amount at INR 75 lakhs.
Issue is can he transfer his asset to his wife where Department can not reverse/nullify the transaction.
Kuummaar AS
(Expert) 04 October 2016
Dear Laddha,
You are coming out with details in parts.
In response to your first post PROVIDING DETAILS OF YOUR PROBLEM, , I had stated that "These details are not sufficient to render proper advice."
In the absence of Complete REPEAT Complete details in chronological order, ANY ADVICE IN THE MATTER MAY BE DANGEROUS.
Rajendra K Goyal
(Expert) 05 October 2016
Govt. dues have to be paid in priority.
Any attempt to transfer the assets with intention to hold / not pay govt. dues would complicate the situation.
Vivek Laddha
(Querist) 05 October 2016
@ Goyal Sb.,
Thank you. Could you mention the relevant provision which can complicate the transfer?
Rajendra K Goyal
(Expert) 05 October 2016
Tax authorities can proceed to cancel the transfer of the property.
Govt. dues can be recovered as land revenue.
Huge amount of TDS was involved / not deposited , criminal case of embezzlement can be registered.
Since a huge amount is involved, it is advised to proceed for professional advice from local tax consultant.
krishna mohan
(Expert) 06 October 2016
You may consult CA on how to discharge the tax liability or challenge as permissible under law before the authorities. Other short cuts may not work.
Kuummaar AS
(Expert) 06 October 2016
It is reiterated, in the absence of Complete REPEAT Complete details in chronological order, ANY ADVICE IN THE MATTER MAY BE DANGEROUS.
Guest
(Expert) 06 October 2016
Dear Shri Mohan and Kumar,
As per his profile, the author, himself is a qualified professional with degrees of CA, CS, CMA, & LL.B.
Probably he wanted to test the knowledge of the experts by putting such question and adding supplementary information by and by.
Kumar Doab
(Expert) 06 October 2016
House is mortgaged.
Can not be transferred til debt is paid and released by lender.
If matter has reached to the stage of Tax Recover much likely.
In this matter steps to circumvent payment of tax dues, can fetch serious implications.
You may check for your friend; with Top Tax consultants, CA's of the town, in person.
Kuummaar AS
(Expert) 06 October 2016
Mr. Dhingra,
You may be right that, being a qualified professional with degrees of CA, CS, CMA, & LL.B., he wants to test the knowledge of the experts but to achieve his purpose, he needs to provide complete details in chronological order.
Guest
(Expert) 06 October 2016
You are right Mr. Kumar.
Vivek Laddha
(Querist) 07 October 2016
By getting qualification I can not claim myself to be expert and do not have right to test any one. I am very sincere and open to this. Still if one gets hurt directly or indirectly, kindly do forgive me.
Mr Dhingra, you are again in my pond. Do not respond to my query. I am professional and polite too but do not understand why do you give personal comments everytime. I have seen your attitude previously as well.
cherukuri prasad
(Expert) 07 October 2016
Reply to notice by taking the advice of good advocate or tax consultant (generally CA). Don't try your imagination against law. Law is too deep. Better to look for the provisions which protect you.
Income tax law is not villain. Tax is always on the net income but not on loans. All other expenses are deducted.
Vivek Laddha
(Querist) 07 October 2016
Thank you Prasad Saheb.
Rajendra K Goyal
(Expert) 07 October 2016
The author,
It is not sign of sincerity / goodness / politeness to use words against an expert not to reply your query on this public platform.
Out of no. of replies on a query, author may proceed on one or two replies or he ignores other / all replies.
But using such words is not good antiquate, please avoid if you can.
Vivek Laddha
(Querist) 07 October 2016
Dear Goyal Sb. , thank you for sharing your thoughts and learning to me.
But at the same public forum Mr Dhingra has given the personal comments earlier and this time again which is not acceptable to my understanding.
Rajendra K Goyal
(Expert) 07 October 2016
Dear Author,
I have not tried to teach from which you were learning, in fact I can not and have not tried, only mentioned my views.
Rest depend on you.
Guest
(Expert) 07 October 2016
Dear Mr. Vivek Ladha,
If I am again in your pond you are only unduly trying to kill me. Moreover, the LCI's open forum is a common pond for one and all to use, not the sole property of any individual like you, as you claimed.
Further, when you say, "do not respond to my query," be aware, when you appear with your query in an open forum, you don't have any choice to issue any direction to anyone to respond or not.
If you see carefully, I have not responded on your query, rather on the observations of Shri Mohan and Shri AS Kumar.
However, if you desire that I should not respond to any other's observation also on any page where your query appears, you may better try to observe total privacy by taking help privately from some local expert instead of availing charity service on the LCI's open forum.
Vivek Laddha
(Querist) 08 October 2016
Your wordings ' unduly trying to kill me' is like "THE POT CALLING THE KETTLE BLACK".
LCI open forum is not here to pass personal comment.
Guest
(Expert) 08 October 2016
Mr. Vivek Ladha,
You probably forget, your quotes on pond or kettle, etc., may not change the reality.
When you know, "LCI open forum is not here to pass personal comment," why did you resort to that at your own? Anyone can check, it is only you who made personal comments against me, stating, "Mr Dhingra, you are again in my pond. Do not respond to my query. ...... etc.," whereas, I had not addressed my post to you. My post was was clearly addressed to S/Shri Mohan and AS Kumar in response to their replies.
Guest
(Expert) 08 October 2016
Dear Author.Better Follow the Advise of Expert Madhu Please.
Kumar Doab
(Expert) 08 October 2016
You may check for your friend; with Top Tax consultants, CA's of the town, in person.
Rajendra K Goyal
(Expert) 08 October 2016
Proceed as per advice from expert Kumar Doab.
