Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 I am senior citizen and I have sold my flat on 01.07.2012 :
Cost price in 1988 = Rs. 1,70,000
Sold price in 2012 = Rs. 23,00,000
Calculation : 1988-89 index was 161 , 2011-12 index was 785
So the notional cost price paid = 1,70,000*(785/161) = Rs. 8,28,881 say Rs. 8,28,000
Since property is held for long term : Long term profit = Rs. 23,00,000 minus 8,28,000 = Rs. 14,72,000
Tax to be paid = 20% of = Rs. 14,72,000 would be Rs. 2,94,400

My Question : 1. Calculation is ok
2. Can I purchase new flat only for Rs. 14,72,000 and avail tax benefit or I have to purchase flat worth of Rs. 23,00,000
3. Is it neseccery open CGAS within 3 months of sale or I can open it within 31.03.12 (Retun dt)
4. I have put Rs. 8,00,000 in term deposit in bank on 15.06.2012 from Banakhat amount, whether I have to withdraw this amount and put in CGAS immediately
5. Whether I have to deposit advance tax worth of Rs. 2,94,400 within 3 month
Pls. give me your feedback. Thanks

Mohit Naithani

Mohit Naithani (Expert)
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21 July 2012 1. Yes your calculation is ok.
2. U have to purchase a new flat wroth Rs 1472000 (Capital gain Amount) within 2 years of sale. and for that 2 time period u have to deposit this amount in Capital Gain Scheme Account.
3. Its necessary to open CGSA before the due date of filling return (i:e 31.07.2013.
4. An amount is to be deposit in CGSA before 31.07.2012, Before that u can use it in any way.
5. If u have a plan to purchase a new house property with 2 years of sale then their is no need to deposit Advance Tax but an amount is to be deposit in Capital gain Scheme Account before filling ITR for A.Y. 13-14.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 Thanks Mr. Mohit
1.For Ans.4-amount should be deposit in CGSA before 31.07.2012 or 31.07.2013 or 31.03.2013 (Financial ending)
2. I have not decided for new purchase, I need time the search for new house.For this 2 year what should I plan for this money within procedure.
Kindly advice

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Mihir Doshi

Mihir Doshi (Expert)
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21 July 2012 Dear Author,

Either u can purchase flat within 2 years or construct property within 3 yrs from the date of transfer of property.

u have sold the property in Previous year 2011-2012, so you should deposit in CGAS by 31.07.2012 and whenver u want to buy new property u can withdraw dat amount and u need to buy the flat maximum of INR 14,72,000/- to avail the exemption.

Make sure that new property, u need to keep for 3 yrs from the date of purchase.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 There is some mistake. I have sold property recently, 10 days back.Then which is the last date to deposit amt. in CGSA.

Mihir Doshi

Mihir Doshi (Expert)
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21 July 2012 If you have sold out the property 10 days back then you have time to deposit this money till 31.07.2013.

Before that you can invest this money into any other form and earn interest which will again be taxable as income from other sources.

Thanks
Mihir Doshi

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 CAPITAL GAIN TAX 04.07.2013

Tax to be paid = 20% of = Rs. 14,72,000 would be Rs. 2,94,400

1. I have simply put total amount in Bank FD.
2. I have not put money in Bond, nor opened CGAS account ( as time limit is upto 31.07.2013).
3. I have decided not to purchase new residence.

My Question :
1.Can I invest Rs. 14,72,000 in Govt. Bond now?
2.After locking period of three years, Can I utilize / invest the money in normal bank FD?
3.Is there any liability to pay Gain Tax after locking period of Bond?
4.Can I open CGAS now & put Rs. 14,72,000 up to 20.07.2014 and meantime decide to pay tax or purchase a new residence?
5.If I have to pay tax of Rs. 2,94,400, Pls. inform when and how I should pay?
6.In Income Tax return ITR-2, where should I reflect about LTGT?
7.Pls. suggest a good CA located in AHMEDABAD near Satellite with there name, address & contact no. for filling tax and IT return.
Pls. give me your feedback. Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2013 I am waiting for reply

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 Nobody is able to answer my query?