21 May 2014
Query:- If somebody invested in residential house in section 54 or section 54F within the time limit and claimed the exemption under section 54/54F and later on due to some problem i.e. like cancellation of flat booking due to defects in title and the assessee invested in the capital gain scheme after 2-3 months. Now query is : 1)whether assessee is still getting the benefit of Section 54/54F or not? 2) What is the time limit to deposit the amount of capital gain into capital gain scheme after such cancellation of flat due to title defects or some other reason?
Please reply the experts here or reply to us on pragnesh91980@gmail.com.
We are awaiting of expert's view from CAClubindia who is having a members around 12.83 lacs.
then you have to deposit the gain in capital gain a/c under u/s 54 and gross receipts u/s 54F till date 31.7.2015( if it will income tax return filing date for F Y 2014-15) assess can get benefit for that situation as mention by you.
21 May 2014
Take on e.g. Total Long Term Capital Gain of Mr. A is Rs. 25,00,000/- on 1-4-2013 and if he purchased the house within 2 year of rs. 25,00,000/-e.g. on 30-9-2013. But due to defaults in title he cancelled the agreement and get the refund from the Builder on 31-12-2013. Now what will be the situation of Captial Gain Exemption in the following situation:-
1. If he purchased a new flat in the same F.Y. 2013-14 i.e. e.g. on 31-03-2014 of same amount of Rs. 25,00,000/- or
2. If he purchased a new flat in the next f.y. 2014-15 i.e. e.g. on 1-4-2014 of same amount of Rs. 25,00,000/-.
So, whether he is eligible to get the exemption under section 54 in FY 2013-14 in both the above situation.
I am very thankful you to Rupeshji if you answer again.
I am also awaiting the more experts comments on this.
21 May 2014
As Rupeshji has rightly said. if you have deposited amount in capital gain A/c up to the date of filing of return for the FY in which the property has been sold then you will get exemption of that investment u/s54/54F if you invest within two years from date sale. In your case you can invest up to 31.03.2015.
22 May 2014
OK THANKS MOHITJI. BUT IF FLAT IS SOLD BEFORE 36 MONTHS AND there is a short term capital gain and if the same amount reinvested also then also section 54 exemption can not availed by the assessee because assessee can claim the exemption only against long term capital gain . Is it true?
CAclubindia
