Capital gains tax

Tax queries 164 views 10 replies
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Freelance writer
49 Points Joined July 2018

Dear Experts,

I sold my house in July 2016 for 1 Crores and the Capital Gain computation turned out to be 32,50,000/= (by an Auditor I consulted that time) and have  the indexation workings with me.

In January 2016 I deposited the sum (32,50,000/=) to Capital Gains Deposit Account in a nationalized bank.

Ever since I haven't bought a residential apartment or property yet. By this, I assume I'll need to pay 20% tax on LTCG by JUly 2019.

Is there a way to legally avoid paying this tax.. such as by reinvesting in NH bond or any other means?

What are my options available now? (other than having buy an individual house by July 2019)

Thanks.

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On 25 October 2018 at 10:55 Report
Replies (10)
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SEO Sai Gr. Hosp.
208062 Points Joined July 2016

No more option available now, except constructing a house property by July 2019.

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On 25 October 2018 at 11:15
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12244 Points Joined May 2017
concur with Mr Dhiraj view
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On 25 October 2018 at 11:17
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Freelance writer
49 Points Joined July 2018

Thanks for the response, sir.

Can I buy a independent house (not apartment) that's already constructed and available for sale now?

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On 25 October 2018 at 12:09
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12244 Points Joined May 2017
as of now the time limit for purchasing house property has expired (2 years from the date of sale) the only way to avoid capital gains tax is to construct a house property. this is my humble opinion. let's wait for experts opinion
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On 25 October 2018 at 12:22
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SEO Sai Gr. Hosp.
208062 Points Joined July 2016

Yes, correct.  No more option even for PURCHASE of any ready made house property, but any underconstruction property can be purchased which may get ready to occupy before July, 2019.

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On 25 October 2018 at 12:44
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Freelance writer
49 Points Joined July 2018

Does altering an existing house property count? Such as buying an old property and doing a major revamp. Does this revamp count as "under-construction"?

Thanks for the insights so far!

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On 25 October 2018 at 12:47
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Freelance writer
49 Points Joined July 2018

Does altering an existing house property count? Such as buying an old property and doing a major revamp. Does this revamp count as "under-construction"?

Also, can I use the parked LTCG funds for buying a *land* and then constructing?

Thanks for the insights so far!

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On 25 October 2018 at 12:50
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SEO Sai Gr. Hosp.
208062 Points Joined July 2016

Surely, provided old construction demolished completely.

Otherwise little difficult to convince at AO level; though some case-laws are in favour of assessee.

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On 25 October 2018 at 12:52
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SEO Sai Gr. Hosp.
208062 Points Joined July 2016

"Also, can I use the parked LTCG funds for buying a *land* and then constructing?"

Yes, but check that the amount of CG gets completely utilized in new construction before July 2019.

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On 25 October 2018 at 12:54
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Freelance writer
49 Points Joined July 2018

Excellent! Thanks for the insights, sir. 👌

Will further pursue it with an auditor to get this done.

Best Regards.

 

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On 25 October 2018 at 12:56


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