Long term capital gain on property

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 I have sold my residential property after period of approx. 6 years in month of dec 2013, what is total time period for reinvestment and if i unable to buy another property before march 2014, shall i need to separate this fund from my regular bank account and give intimation to income tax department separately from ITR

CA Jitender Sharma

CA Jitender Sharma (Expert)
Follow

18 March 2014 Dear ,
you can invest under following sections time frame:-

u/s 54 a residential house has purchased within a period of one year before the transfer or 2 years after the date of transfer.
or
in case of construction that must be completed with in period of 3years after the transfer
LONG TERM CAPITAL GAIN ON TRANSFER OF CAPITAL ASSET IS EXEMPT U/S.54EC IF IT IS
INVESTED IN CERTAIN BONDS:

u/s.54EC, if the capital gain is invested within a period of 6 months from the date of transfer in bonds, redeemable after three years issued by National Highways Authority of India & Rural Electrification Corporation Ltd.

Note:-
1. The investment in long term specified asset has to be retained for a period of three years.
2. If the long term specified asset is transferred (or) availed a loan within three years, then the amount of capital gain originally exempt will be brought to tax as LTCG in the previous year in which the Long Term specified asset is transferred.

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 Thanks for the details, kindly confirm my second query that if we unable to buy before 31st march 2014 then we need to deposit that sale amount in separate account and have to intimate ITO apart from giving details in ITR?

Upgrade to CAclubindia Pro. Subscribe Now!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

18 March 2014 You have to open a separate bank account before the due date of filing of the return as provided u/s 54F(4) and then out of that account you can invest as suggested by the expert

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2014 I have to open separate bank account before 31st March or before due date of filing the iTR I.e. I think 31st August for individual

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 I have to open separate bank account before 31st March or before due date of filing the iTR I.e. I think 31st August for individual

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2014 I have to open separate bank account before 31st March or before due date of filing the iTR I.e. I think 31st August for individual

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2014 I have to open separate bank account before 31st March or before due date of filing the ITR i.e. I think 31st August for Individual

Upgrade to CAclubindia Pro. Subscribe Now!

CA Jitender Sharma

CA Jitender Sharma (Expert)
Follow

22 March 2014 The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset :

There for you need to deposit the same before 31st july

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2014 Thanks for reply, its means if i invest in property on/before 31st July, i need not to open separate bank account and utilize the funds in that property