Capital gain tax

kiran jhamnani (Finance Professional) (119 Points)

22 December 2016  
My Brother sold a house on 21st Jan-2014, His CA calculated an amount Rs 16 Lakh 54 Thousand being the capital gain and asked him to deposit into the saving account. This amount is in the Capital Gain Saving account. Now the three years period is going to finished and unfortunately he was not able to purchase suitable property. This capital gain account accumulated 4% interest and He paid the 10% TDS on interest earned in this account in his yearly IT return. 1) Now when He should proceed to cancel this capital Gain Saving account & pay tax, get the tax paid clean amount back 3) IT department will allow us to use this interest to pay tax. Interest accumulated is around 1.5 Lakh and tax would be about 3.25 Lakhs. Can we get the entire capital gain tax deducted from the money in the Saving account and balance would be allowed to transfer in the other saving account. This procedure should be done at the time of filing return in the coming financial year return i.e. by 30-July 17 or Just before the date of 3 years finished by 20 January 2017 How long the IT office procedure is, and if there is any chance we meet personally with concerned officer in IT department and beg for 3 month extension to buy the new house through the discretely powers.