Suppose Mr. A have two Residentails houses both are ancestral and one of the house sold in 2016-17 for Rs 15,00,000 and same day the value of house according to government is Rs 16,00,000. he didn't file any income tax return for any of the finanacial year till now and he is a government employee also then in financial year 2018-19 he had purchased agriculture land for Rs 17,00,000.
My query is that is he have to pay any LTCG or not, if yes than how much.
What is the procedure for the same will be followed.
1. In your case, the sale of Residential property will attract capital gains tax depending upon the period of holding.
2. Considering LTCG, Mr. A needs to pay tax @ 20% after deducting indexed COA from Rs. 16,00,000. Where residential property was sold, the exemption available are,
i) To invest in new residential property before one year from the date of sale or within 2 years from the date of sale or construct within 3 years from the date of sale ( Sec 54)
ii) Invest in bonds such as NHAI, REC, PFC, IRFC within 6 months from the date of sale ( Sec 54EC)
3. In your case, there will not be any exemption available and tax need to be paid on LTCG @ 20%.
4. If its an STCG then it will be taxed according to slab rates available.
5. And in your case time limit for filing ROI expired, you may pay a penalty of sec 271F of Rs. 5,000 and the income will be assessed to tax u/s 144 (best judgment) and prosecution proceedings may be initiated u/s 276CC.
Please correct me if the above solution has an alternative view.
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