31 March 2012
A sold a residential building in June 2011 and earned capital gain of Rs 20 lakhs. He wants to take benefit of sec 54 but is not able to decide on purchase of a house. In the meantime he has put the money received in a FD. He has option to deposit the money in capital Gain Scheme by 31 July 2012 in case he is not able to finalise on a purchase of new house. Suppose he is not able to buy a house and also does not deposit the amount in CG Scheme nor buys REC bonds etc till 31 July 2012 and hence pays the tax due,i.e 20% of 20 lakhs in July 2012 while filing his return, (self assessment tax) will he have to pay interest also under sec 234 etc since he did not deposit advance tax?
01 April 2012
YES, HE HAS TO PAY INTEREST U/S 234. SINCE, ADVANCE TAX NEEDS TO BE PAID IN CAPITAL GAIN IN THE QUARTER IN WHICH THE ASSET IS TRANSFERRED.
01 April 2012
Thanks for your reply. Please also advise on the following: Has 100% tax to be paid in same quarter when asset is transferred or 30% by 15 Sep, 60% by 15 Dec and 100% by 15 March?
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