01 July 2018
I have sold my Residential Plot in March 2018. I intend to purchase a Residential Flat in other City within 2 years and for that I am ready to invest 30 LAKHS. Net Sale Proceeds from Plot is 20 Lakhs. LTCG comes to Rs. 15 LAKHS. I have planned to invest the Amount in Capital Gain Account . I know that if I invest entire amount of my Net Sales Proceeds of 20 LAKHS in New Flat , I will get full exemption of LTCG Tax on 15 LAKHS @ 20%. I am confused whether I am required to Deposit entire Sale Proceed in Capital Gain Account OR it will be sufficient to deposit only Capital Gain amount of 15 Lakhs. I intend to deposit only 15 LAKHS and while purchasing New Flat , I will invest from my other sources. Kindly clarify.
01 July 2018
Net sale consideration has to be invested.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
01 July 2018
Thanks for Prompt Guidance Sir. Now, after investing entire Net Sales consideration in Capital Gain Account and after filing Return for AY 2018-19 and getting Exemptions, suppose I change my mind and finally decide not to purchase a New Flat at all and pay Due LTCG Tax before 31-03-2019 i.e in this Financial Year 2018-19 itself. Then how I will proceed to pay LTCG Tax and whether I will be allowed to close the Capital Gain Account and witthdraw entire money deposited,of course, after paying LTCG Tax and taking approval from Assessing Officer. I mean to ask you whether as per Act and Rules Income Tax Authorities are allowed to approve such a Premature Closure of Capital Gain Account OR there are certain other conditions or limitations or minimum waiting time for closure of Account.
01 July 2018
Thanks for Prompt Guidance Sir. Now, after investing entire Net Sales consideration in Capital Gain Account and after filing Return for AY 2018-19 and getting Exemptions, suppose I change my mind and finally decide not to purchase a New Flat at all and pay Due LTCG Tax before 31-03-2019 i.e in this Financial Year 2018-19 itself. Then how I will proceed to pay LTCG Tax and whether I will be allowed to close the Capital Gain Account and witthdraw entire money deposited,of course, after paying LTCG Tax and taking approval from Assessing Officer. I mean to ask you whether as per Act and Rules Income Tax Authorities are allowed to approve such a Premature Closure of Capital Gain Account OR there are certain other conditions or limitations or minimum waiting time for closure of Account.