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Kiran Dhawale
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The long term capital gain in respect of listed securities would be taxed @10%, while other long term capital gain is taxable @ 20%. The short term capital gain in respect of STT paid transaction is taxable @15% while other short term capital gain is taxable @30%, plus applicable surcharge. 

Jayesh Dadia
Chartered Accountant 

I am an individual having salary and rental income. I also own certain assets, both movable and immovable, outside India. I am also signatory to some bank accounts outside India but I do not earn any income outside India. Therefore, is it mandatory for me to disclose foreign assets in my return of income? 

 It is mandatory for every assesse, particularly individuals, to disclose details of foreign assets as well as income from any source outside India. In Form ITR 2, which is applicable in your case, a special annexure Schedule FA needs to be filled up, which contains details of foreign assets. The description of assets also needs to be given, such as bank account, immovable property, any other capital assets and any interest in the trust located outside India. Moreover, even if you are signatory to any bank account which is not owned by you, then also you have to give information relating to such bank account, i.e.,the country in which the bank account is situated and who are the beneficial owners of that bank account and your relation with the owners. In case of foreign bank account, you have to mention the amount of peak balance during the financial year and not the closing balance at the end of the year. Thus, it is mandatory for every assessee to disclose foreign assets and income in their annual return. Kindly note that non-disclosure of foreign asset in your return would attract penalty and prosecution and it would be considered as a serious offence. 

Therefore, you must disclose your foreign asset in your return, irrespective of whether you earn any income outside India or not. 

Can you explain me the law relating to long term capital asset and short term capital asset and set-off of losses under this head ? 

 Any capital asset held by you for less than 36 monthsis a short term capital asset, except in case of shares in a closely-held company and land and building where the holding period is 24 months and shares andmutual fund in listed companywhere the holding period is 12 months. 

The long term capital asset is an asset which is not a short term capital asset as per the definition mentioned above. Losses under long term capital asset can be set-off only against any other long term capital gain of the same financial year. Theunabsorbed loss, if any, can be carried forward to eight subsequent assessment years and can be set-off only against long term capital gain. 

Short term capital loss can be set-off against any capital gain, including long term capital gain in the same financial year. The unabsorbed short term capital loss can be set off against any capital gain of subsequent eight years. 

The long term capital gain in respect of listed securities would be taxed @10%, while other long term capital gain is taxable @ 20%. The short term capital gain in respect of STT paid transaction is taxable @15% while other short term capital gain is taxable @30%, plus applicable surcharge. 

I am an individual engaged in the business of trading in chemicals. For the assessment year 2016-17, in a scrutiny assessment, the AO has made huge additions u/s 68 of the I T Act as alleged bogus loans. The fault is also mine as I have not filed vital information during the course of assessment. I have now collected all the information such as confirmation letters of lenders, their PANs, their audited accounts and bank statements, which clearly establish that I have received loan from them only and which have been subsequently repaid.Kindly advise me what are the remedies available to me as I don’t have funds to make payment of disputed demand. 

 The first action you should take is to file an appeal before the Commissioner of Income (Appeals)(CIT(A) immediately, i.e. within 30 days from receipt of the order. Further, the appeal is to be filed electronically. Kindly ensure that you raise proper grounds of appeal. When the appeal is fixed for hearing, you must file the additional evidences which you have collected subsequently, i.e. confirmation letters, bank statements, audited accounts of the lenders.You have to file an affidavit explaining the reasons for not filing all these evidences at the time of assessment. If you justify your case before CIT(A) that you have been prevented by reasonable cause in not filing these documents, then CIT(A) may admit the additional evidence and send to the Assessing Officer(AO) for his remand report. The AO may call you for further explanation while preparing the remand report. He will then send his remand report to CIT(A). He will also give you a copy of the remand report for rebuttal. You or your counsel may have to establish before the CIT(A) that the initial onus, i.e. proving the identity of lenders, his capacity and capability and genuineness of loans have been discharged, then the CIT(A) may allow your appeal in view of various settled High Courts judgements, including the Bombay High Court. Therefore, you have still a chance to represent your case. If you don’t succeed before CIT(A), then you file further appeal before the Income Tax Appellate Tribunal, where in my opinion you will have a fair chance of succeeding

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