Tax advice required

1. The age of my wife Mrs. Madhu Dhal is of 67 years (born 1945). We shifted from Agra in October 2012 due to my illness, now residing in NOIDA.
2. Till March 2013, she was getting FD interest, below tax limit, from bank but tax was deducted and Form 16A was issued. How can she apply for refund?
3. In 2013-14, she sold her house and opened another FD in the same bank which will give taxable interest; hence she will file the return and needs advice. She also wants to know if there is any deductable exp. From tax, such as expenses on my illness and household exp. Etc. Thanks.

Dharam Vir Dhal - Mobile No. 08373932295 more  

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sorry for typing error, please read " difference is sale price and indexed cost price is the capital gains more  
Dear sir, As i see your query i thought you was not filling ITR in previous year. so file ITR and get Refund. Thanks Atul Sharma more  
If your wife sold a house then first thing is to fix the indexation value as on the date of sale with respect to date of purchase or construction. after indexation the difference in cost and indexed price is the real income of capital gains on which 20% tax is applicable. But if your wife invests this income in another house then no tax, otherwise in 3yrs capital gains bonds of REC/NTPC or 5yrs capital gains special FD of bank you get exemption from capital gains but the interest on that FD is again taxable. more  
Dear Sir, Just a small correction what i intended by that comment was to point how he could plan his taxes better before March 31, 2014 or within the time frame that you also recognised two year after such transfer or three years in case of construction. I started with the overall exemption limit to inform him of the slab he would fall in.Sometimes lay people want to start with how much they can deduct.Before going technical on how capital gains is calculated, I thought it fit to inform him in that direction. Besides I was mentioning that in case it is a long term FD it would be deducted from taxable income under Section 80C specified contributions upto Rs 1 lakh. I have not yet dealt with the issue of interest, as he did not ask it. But point taken that it should have been mentioned.(I did not know the date of sale or reinvestment into Fixed deposit) His query on interest being taxed was for the previous year. I think you got me wrong. Besides I am sure he cannot change the first FD with fresh infusion if it is long term. Thanks and Regards, Ashish Gosain. more  
proceeds from sale of immovable property attracts capital gains tax if not invested in immovable property again and within a specified time frame. such a reinvestment in immovable property does not attract capital gains tax and has no limitation slab. But when you put the proceeds from the sale of immovable property into a bank FD and do not reinvest in immovable property within the time frame, you would not only have to pay capital gains tax but also tax on the interest earned from the FD in the bank. The above is as per my knowledge and perhaps Mr. Ashish Gosain, being in the area of taxation or a CA could guide you better. more  
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