Capital gain tax

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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.
Replies (6)

1. Any time before or after 3 years.

2. Before filling return, it can be done; but get permission letter from ITO

3. Not possible for any extention of time period, now.

 

2. Before filling return, it can be done; but get permission letter from ITO

Kindly explain this, because for buying the house bank will only ask form C to make the payment to vendor.

 

and as you said before filling the return get permission letter from ITO, this is for withdrawing the money after paying tax you mean?

 

To close the account and withdraw the money, without its utilization for capital gain exemption.

Thank you so much Sir.

 

Dear Sir,

 

IF the amount kept in Capital gain saving account if un utilized in the stipulated time of 3 years of dead of sale of previous property, 

without taking out from the Capital Gain Saving Account  this deposit can still taken out to buy the property through the form C ? and the Taxable amount ( the FY of sale of past property 3 years ago) could be added to runing years IT  Return by 30-July 17 ? is that permitted ?

Please advise. Many thanks for your time.

Once you have paid LTCG tax over the property sold earlier, the amount can be withdrawn from the CG savings account then you can utilize it the way you wish, including purchase of another property.


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