I was checking deemed capital gain section in ITR. It considers the complete amount unutilized in CGAS deposit account for calculation of gains even for 54F. i.e. it considers 20% of 25 Lakhs.
Below are entry details: Section under which deduction claimed in that year = 54F Amount utilised out of Capital Gains account = 0 Amount not used for new asset or remained unutilized in Capital gains account = 25 Lakhs
What is the correct way to declare it in ITR such that it is 20% of 15 Lakhs?
27 October 2023
20% of 25 Lakhs is incorrect right as the actual amount to be taxed is 20% of 15 Lakhs?
>> If not deposited under CGAS, actual amount subjected to tax 3 years back = 20% of 15 Lakhs >> Entire sale amount was deposited under CGAS 3 years back as per section 54F = 25 Lakhs >> Now, since I am unable to use the amount deposited under CGAS to purchase house, the entire amount of 25 Lakhs, which includes the principal amount cannot be subject to tax at 20% right?
27 October 2023
Again sorry I am confused. You are right only tax payable on the capital gains of 15 lacs. It's only deposit of sale value of 25 lacs is required.
27 October 2023
What is the correct way to declare it in ITR such that it is 20% of 15 Lakhs?
Under deemed capital gain section in ITR. It considers the complete amount unutilized in CGAS deposit account for calculation of gains even for 54F. i.e. it considers 20% of 25 Lakhs.
Below are entry details under deemed capital gain section: >> Section under which deduction claimed in that year = 54F >> Amount utilised out of Capital Gains account = 0 >> Amount not used for new asset or remained unutilized in Capital gains account = 25 Lakhs
For above entries 20% of 25 Lakhs is considered as tax.
54F is also applicable for equities, whose LTCG is taxed at 10% instead of 20%. What is the correct way to mention the deemed capital gain in ITR for section 54F when CGAS deposit amount is unutilized/partially used.
27 October 2023
Then the entries under deemed capital gains will be as mentioned below.
>> Section under which deduction claimed in that year = 54F >> Amount utilised out of Capital Gains account = 0 >> Amount not used for new asset or remained unutilized in Capital gains account = 15 Lakhs
Are the above entries correct? It is ok to mention amount used is 0 and amount unutilized is 15 Lakhs?
Can the amount of 15Lakhs be mentioned under general deemed capital gain section section in ITR, as mentioned below
a. Whether any amount of unutilized capital gain on asset transferred during the previous years shown below was deposited in the Capital Gains Accounts Scheme within due date for that year? No b. Amount deemed to be long-term capital gains(other than that at 'a' above) = 15 Lakhs
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