How much amount to be deposited in long term capital gains

Tax queries 538 views 2 replies

harsh malpani

prop

64 Points Joined December 2011

i have sold a property in dec 2013 for which i have to deposit amount in long term capital gain a/c as of 31 st july 2014. my question is that i have i only received part payment of the registry amount and the balance is payable in october 2014 i.e. after the date of filing the return. in registry cheque numbers have been mentioned.how much amoount i have to deposit in capital gains account. the amount till now actually recd till july 2014 or the whole registry amount that is the amount actually recd + the amount due in october. what if the amount i receive in october i directly give to the party from whom i have purchased flat or is there any other way. please guide as i am confused

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

it is not the sales procees that is reqd to be deposited... you need to deposit the capital gain amt.... so calculate your gains and deposit that amt in such account.... if you are purchasing new flat then claim exemption of 54 before depositing amt. in capital gains account... and yes, you can directly pay to the seller from amt. to be recvd in oct 14.

Ajay

CA Job

512 Points Joined March 2007

Dear Harsh

I assume you have sold one residential house property (which was a long term asset) and that you are claiming deduction under Section 54.

If so, as Tribhuvan said, you need to invest in the "Capital Gain Deposit Account Scheme" only the amount of Capital Gain arising from this transaction and not the whole of Net Sale Consideration (which would have been the case, if you were claiming u/s 54F).

So, hopefully, the amount you hav received till date covers atleast the Capital Gains Amount which you can invest in the CG Account and thus, claim the exemption.

As far as you utilise either the fund you will be receiving in October 2014 (upto the minimum of Capital Gains generated) or the whole of fund invested in CG A/c (which equals Capital Gains generted) to buy the new flat, your claim of exemption u/s 54 stands intact. Just make sure that you withdraw the amount deposited in CG A/c wihtin the stipulated period of 2 years (here the case being purchase of a house property).

Regards

Ajay