Dilip Lakhani , Senior Chartered Accountant, answers queries from our readers on income tax and other levies.You may ask your employer to contribute up to Rs 2.2 lakh (10% of your basic salary) to National Pension Scheme and reduce your taxable allowance to that extent. You can also contribute additional amount up to Rs 50,000, to National Pension Scheme, if cash flow permits, and claim deduction u/s. The indexed cost of acquisition will be reduced from the sale consideration of Rs 5 crore and the resultant amount will be treated at LTGC. 54 in respect of the new flat purchased amounting to Rs 4 crore, while computing the taxable LTCG. If any surplus still remains, you will be liable to pay tax at 20%.Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com Tax to et.tax@timesgroup.com Insurance to et.insurance@timesgroup.com Realty to et.realty@timesgroup.com

Source: Economic Times December 06, 2017 08:26 UTC