Rakesh (Proprietor) (70 Points)
27 January 2012I sold office (commercial property) on Nov 23'2011 which was bought in April 2008 making a Gain of Rs. 13L. I want to invest in 54 EC.
What will be last date of buying bonds?
Can I buy bonds after 31/3/2012 but before 23/5/2012 and before filing IT return ? In such case how to show in IT return.
Are such bonds easily available after 31/3/2012?
Thanks
Z
( )
(2965 Points)
Replied 27 January 2012
" For purpose of section 54EC, period of six months has to be reckoned from end of month in which transfer took place - Jan [2012] (Mumbai - Trib.)"
For date, confirm the offer
NHAI
|
Date of Closure |
31.03.2012
|
source: https://www.nhai.org/bonds1.html
REL
REC extends subscripttion in this Issue till 31.03.2012 or till any notification/modification is done by the GOI in the Income Tax Act,1961 u/s 54 EC of the Income Tax Act,1961, whichever is earlier
Source: https://rec.rcmcdelhi.com/offers.php
Rakesh
(Proprietor)
(70 Points)
Replied 27 January 2012
Thanks Z , But in my case 6 months get completed after 31/3/12. Will such bonds be available after 31/3. Also If I buy after 31/3/12 technically it becomes AY 2013-14 however gains were in AY 2012-13. Is that OK?
Z
( )
(2965 Points)
Replied 27 January 2012
Yes completion of 6 mnths is after 31/3/12 but the words 31/03/12 or notification/modification ,whichever is earlier clearly explains that for now time limit is 31/3/12 only . After that there is NO OPEN SUBSCRIPTION
If assesse invests within speculative time then its fine . No prob at all
+ investment is 50 lac per financial year so it means even 1 crore can also be claimed if assesse purchased bonds say in 29/02/12 and then again in say 1/04/12 (as its within the prescribed limit) BUT THERE SHOULD BE DATE FOR SUBSCRIPTION
FOR BOTH NHAI AND REC CLOSURE DATE IS 31/3/12
Rakesh
(Proprietor)
(70 Points)
Replied 27 January 2012
Thanks Z, so after 31/3 we are at mercy of GOI. If they allow NHAI/REC we can subscribe else pay tax.
Z
( )
(2965 Points)
Replied 27 January 2012
um..
whichever is earlier,i.e even if they do extend the earlier date would still be 31/3/12. No other option
So either go for it or if possible go for sec 54F or pay tax
Welcome .
Rakesh
(Proprietor)
(70 Points)
Replied 27 January 2012
Sorry Z, but if they extend why can't I invest after 1/4/12 but before 23/5/12 when 6 months complete.
I am due to sell another residential property around May'12. Can I club LTCG of residential property + entire proceeds of commercial property and invest in new residential property. Club 54 and 54F and invest in 1 property.
Z
( )
(2965 Points)
Replied 27 January 2012
The last due date shall be 30.05.12
So suppose they extend it to 31.04.12 but REC subscriptttion is closed on that date or suppose if the subscripttion opens after 30.05.12 . Then whats the [point? That is why its whichever is earlier
"REC extends subscripttttion in this Issue till 31.03.2012 or till any notification/modification is done by the GOI in the Income Tax Act,1961 u/s 54 EC of the Income Tax Act,1961, whichever is earlier
earlier date would still be 31.03.12 .PS you won't get any bond from them after their date of closure of subscriptttion
You sold property in Nov 2011 so the time limit for INVESTMENT IS withing 3 years from date of transfer in case of construction (and 1 year before date of transfer) and 2 years in case of purchasing of property Exemption u/s 54 and 54F can be taken simultaneously.AMOUNT NOT INVESTED till the date u/s 139(1) should be deposited in cap gain a/c scheme
To be on safe side deposit within time limit under sec 139(1)
(Exemption u/s 54 from capital gains available even if the investment in new house property is made before due date of filing belated tax returnu/s 139(4). Assessee not required to make separate deposit in capital gains scheme before due date of filing tax return u/s 139(1)
(CIT v Jagriti Agrwal (Ms) (2011) BCAJSept . P. 397(P&H) (High Court)) )
More than one house property can also be claimed
It depends on the facts of the case
If all those residential units can be modified to unite and make it a single residential house property then assesse can claim ecemption having regards to decision made in (CIT v D. Ananda Basappa ( 2009 ) 20 DTR 266 (Kar)).
Rakesh
(Proprietor)
(70 Points)
Replied 27 January 2012
Thanks , got it. Key is it shd be open for subscripttion. They may have approval but may not be open for subscripttion.
Good to know I can combine 54 and 54F.
I dont intend to buy 2 property.
Once again Thanks for prompt guidance.
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