Necessity of showing ltcg exempted in sec 54f in itr
This query is : Resolved
12 July 2012
Is it necessary to show the LTCG which is exempted fully under sec 54F (due to purchase of new house in same financial year)in ITR 2. If YES, then do we have to leave the Part D of schedule CG of ITR 2 blank. Can the form ITR 2 which is downloaded from website of income tax department(black & white) be used.
Regards
Regards
12 July 2012
Yes, it is necessary to show the LTCG in Part B of schedule CG. In part D, only the taxable portion is to be mentioned.
12 July 2012
Even though the capital gain is exempt, you should show it in the return to avoid any problems with the department in future.
12 July 2012
Does this mean that in case the LTCG is fully exempted due to investment in new property under sec 54F, then part D is to be left blank?
03 August 2024
When dealing with the exemption of Long-Term Capital Gains (LTCG) under Section 54F of the Income Tax Act, it’s important to accurately reflect these transactions in your Income Tax Return (ITR). Here’s how to handle this situation in ITR-2:
### **Showing LTCG Exempted Under Section 54F in ITR-2**
1. **LTCG and Section 54F Exemption:**
- **Section 54F** provides exemption on LTCG if the amount is reinvested in a new residential property. The exemption can be partial or full, depending on the amount of LTCG reinvested and the value of the new property.
2. **Filling Out Part D of Schedule CG:**
- **Schedule CG** of ITR-2 is where you report capital gains. Specifically:
- **Part D** deals with **Capital Gains** and requires you to report details of the LTCG.
- Even if the LTCG is fully exempt under Section 54F, you should still report the LTCG in **Part D**.
3. **Filing Procedure:**
- **Report the Full Amount of LTCG** in **Part D** of Schedule CG.
- **Claim the Exemption** under Section 54F in the relevant section of the ITR where exemptions and deductions are reported.
- You need to provide details of the new property purchased and ensure that the amount of LTCG invested is correctly stated.
4. **Filling the ITR Form:**
- When you fill out **ITR-2**, ensure to:
- Report the LTCG amount in Schedule CG.
- Mention the exemption claimed under Section 54F in the appropriate section.
- **Part D** of Schedule CG does not need to be left blank, even if the entire LTCG is exempted. The form should reflect both the LTCG and the exemption claimed.
5. **Form Usage:**
- You can use the **ITR-2 form** downloaded from the Income Tax Department’s website. Ensure that you use the correct version of the form applicable for the assessment year you are filing for.
### **Steps to Follow:**
1. **Complete Schedule CG:**
- Fill in details about the LTCG under Part D.
- Specify the amount of LTCG and mention the exempted portion under Section 54F.
2. **Claim Exemption:**
- In the relevant section of the ITR form where exemptions are claimed, provide details about the Section 54F exemption.
3. **File Correctly:**
- Ensure that all details are correctly filled, and the exemption is properly claimed to avoid discrepancies.
### **Summary:**
- **Do Report the LTCG in Part D**: Even if the LTCG is fully exempt under Section 54F, you must report it in Part D of Schedule CG.
- **Claim the Exemption**: Provide details of the exemption claimed under Section 54F in the appropriate section of the ITR.
- **Form Usage**: You can use the black & white ITR-2 form downloaded from the IT department’s website, as long as it is the correct form for the assessment year.
By following these guidelines, you ensure compliance with tax regulations and accurately reflect your capital gains and exemptions in your ITR.
### **Showing LTCG Exempted Under Section 54F in ITR-2**
1. **LTCG and Section 54F Exemption:**
- **Section 54F** provides exemption on LTCG if the amount is reinvested in a new residential property. The exemption can be partial or full, depending on the amount of LTCG reinvested and the value of the new property.
2. **Filling Out Part D of Schedule CG:**
- **Schedule CG** of ITR-2 is where you report capital gains. Specifically:
- **Part D** deals with **Capital Gains** and requires you to report details of the LTCG.
- Even if the LTCG is fully exempt under Section 54F, you should still report the LTCG in **Part D**.
3. **Filing Procedure:**
- **Report the Full Amount of LTCG** in **Part D** of Schedule CG.
- **Claim the Exemption** under Section 54F in the relevant section of the ITR where exemptions and deductions are reported.
- You need to provide details of the new property purchased and ensure that the amount of LTCG invested is correctly stated.
4. **Filling the ITR Form:**
- When you fill out **ITR-2**, ensure to:
- Report the LTCG amount in Schedule CG.
- Mention the exemption claimed under Section 54F in the appropriate section.
- **Part D** of Schedule CG does not need to be left blank, even if the entire LTCG is exempted. The form should reflect both the LTCG and the exemption claimed.
5. **Form Usage:**
- You can use the **ITR-2 form** downloaded from the Income Tax Department’s website. Ensure that you use the correct version of the form applicable for the assessment year you are filing for.
### **Steps to Follow:**
1. **Complete Schedule CG:**
- Fill in details about the LTCG under Part D.
- Specify the amount of LTCG and mention the exempted portion under Section 54F.
2. **Claim Exemption:**
- In the relevant section of the ITR form where exemptions are claimed, provide details about the Section 54F exemption.
3. **File Correctly:**
- Ensure that all details are correctly filled, and the exemption is properly claimed to avoid discrepancies.
### **Summary:**
- **Do Report the LTCG in Part D**: Even if the LTCG is fully exempt under Section 54F, you must report it in Part D of Schedule CG.
- **Claim the Exemption**: Provide details of the exemption claimed under Section 54F in the appropriate section of the ITR.
- **Form Usage**: You can use the black & white ITR-2 form downloaded from the IT department’s website, as long as it is the correct form for the assessment year.
By following these guidelines, you ensure compliance with tax regulations and accurately reflect your capital gains and exemptions in your ITR.
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