Capital gain utilisation
Prasad Balakrishnan (11 Points)
18 May 2022and sold a property for 40l on 04.04.22 in which I have a long term capital gains of 20l. can this be set off against the purchase of the apartment.
Prasad Balakrishnan (11 Points)
18 May 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 18 May 2022
As per section 54 of the Income tax act , exemption is available for only Long term capital gains ,( holding period more than 24 months) ,
In your case holding period is less than 24 months ( 11.11.20 to 4-4-22 = 1year ,5 months) So it's short term capital gains , therefore you can not claim any exemption . Capital gain tax payable .
Prasad Balakrishnan
(11 Points)
Replied 18 May 2022
Akshat Varaiya
(229 Points)
Replied 18 May 2022
Kev Men
(788 Points)
Replied 18 May 2022
CA Raj Doshi
(Practising CA)
(8924 Points)
Replied 19 May 2022
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2015 Points)
Replied 19 May 2022
Although you can not claim the benefit of exemption of property purchased on 11.11.2020 but still you can buy a one more residential house on or before 03.04.2024 or can construct a house on or before 03/04/2025.
till that you can deposit the capital gain into bank on or before the return file date u/ s 139 (1) into capital gain deposit account scheme.
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 19 May 2022
You cannot claim the capital gain exemption against the property purchased in 2020.
However, you can transfer the proceeds of Rs. 40 Lacs to the capital gains accounts scheme to make an eligible investment in the period 1 yr or 2 yr as applicable.