Capital gain tax
This query is : Open
08 August 2017
After due date i.e 31st july in most of case but before submission of ITR ..can I open capital gain account scheme ? In this case I have not submitted ITR on or before due date?
09 August 2017
Capital gains account should be opened before the due date for filing of returns. Account opened in a later period but before filing returns will not be considered
09 August 2017
capital gain occurred in the financial year 2016-17, the capital gain account would have been opened before the due date of filing return.....section 139(1)
09 August 2017
So can there be any way to reinvest capital gain in purchase of new property after the due date ? Because I have not opened capital gain account
09 August 2017
yes, you have ample time to invest in the property.....purchase or construction as the case may be....
Forget about the compliance in capital gain account....now directly invest in property.
Forget about the compliance in capital gain account....now directly invest in property.
09 August 2017
Amol Ji
Please reconsider your above observation
Please reconsider your above observation
09 August 2017
Ok then only way to reinvest in property
09 August 2017
yes. OR pay the tax......
09 August 2017
Amol ji, if the assessee proposes to invest in construction or purchase of a property to claim capital gains exemption, first he should deposit the same in capital gains account on or before the due date of filing return
09 August 2017
for example, if the gains is Rs.20 lacs and he plans to invest in construction or purchase of a property, as the case may be, he should open a capital gains account sche,e before due date. Otherwise the deduction will be disallowed
09 August 2017
I mean the assessee should deposit the Rs.20 lacs in capital gains account scheme before due date. He may later withdraw the amount for the said purpose of construction or purchase of a property
09 August 2017
@ B.Chackrapani Warrier + K Srinivas, CMA CS
What you are saying is absolutely correct. No any doubt about it.
I am just trying to strike a balance between Income Tax Act and Income Tax Practice.
To deposit the amount in Capital Gain Account, before due date of filing of return, is a PROCEDURAL requirement. The basic intention of section 54 is to invest in new asset within a period of 2 or 3 years as the case may be. In the absence of following the procedure, one can always go for purchase/construction of new asset OR pay the tax.
Your views please.
What you are saying is absolutely correct. No any doubt about it.
I am just trying to strike a balance between Income Tax Act and Income Tax Practice.
To deposit the amount in Capital Gain Account, before due date of filing of return, is a PROCEDURAL requirement. The basic intention of section 54 is to invest in new asset within a period of 2 or 3 years as the case may be. In the absence of following the procedure, one can always go for purchase/construction of new asset OR pay the tax.
Your views please.
09 August 2017
My view is that in the absence of capital gains account as on date of filing return, the taxability of capital gains is final. Even if the assessee intends to buy or construct a new property definitely, taxability doesn't cease
09 August 2017
@ K Srinivas, CMA CS
Ok, you are not ready to distinguish between "Act and "Practice"....... No issues. Thank you for your views.
Ok, you are not ready to distinguish between "Act and "Practice"....... No issues. Thank you for your views.
09 August 2017
Amol ji, true. I thought if the return is scrutinized and details asked by AO, then this assessee will be in trouble as the department goes only on the basis of Act, in matters such as this.
Let's see
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