54F and CGAS
This query is : Resolved
26 October 2023
Under 54F, total sale proceeds was deposited in capital gain deposit account as mentioned below.
Sale value = 25 Lakhs
Purchase value after indexation = 10 Lakhs
Capital gain amount = 15 Lakhs
Amount deposited under CGAS: 25 Lakhs
I am unable to use the complete amount even after 3 years.
What is the tax implication now?
Sale value = 25 Lakhs
Purchase value after indexation = 10 Lakhs
Capital gain amount = 15 Lakhs
Amount deposited under CGAS: 25 Lakhs
I am unable to use the complete amount even after 3 years.
What is the tax implication now?
26 October 2023
20% tax payable on 15 lacs.
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26 October 2023
Where/How to declare it in ITR?
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?
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
Yes, it's 20% of 25 lacs is tax payable. Sorry for the earlier reply.
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?
Please check on this and confirm Sir...
>> 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?
Please check on this and confirm Sir...
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.
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.
Please help with information on this...
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.
Please help with information on this...
27 October 2023
Instead of 25 lacs enter 15 lacs.
In case of equity 10% capital gains tax payable.
In case of equity 10% capital gains tax payable.
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?
>> 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?
27 October 2023
Yes, both the entries okay.
27 October 2023
ok
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
Please let me know...
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
Please let me know...
28 October 2023
Yes, proceed...
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