Long term capital gain tax on ownership transfer of flat

Hi,

Unfortunately, you cant save the capital gain tax now. You will have to pay the taxes.

In order to calculate the capital gain tax, we would need to month of purchase.

Hi

Such transaction involved capital gains which were liable to tax in FY 16-17. Since you had not deposited the money in CGDS, you cannot opt for any investment exemption now.

Your capital gain would be approx. 25 lacs. Capital gain tax would be INR 5 lacs. You will have to pay tax along with interest @2% per month.

The capital gains would come upto around 25 lacs. Capital gain tax was applicable @ 20.6% for FY 16-17. Additionally, there would be interest levied.

Have you received any notice in this regard? Was the ITR filed for FY 16-17?

Hi,

Since you had not deposited the cash in the capital gains deposit account and instead deposited in the savings bank account, it will not be possible to claim exemption from the capital gains.

You will be liable to pay the capital gains tax along witht he interest.

Regards

Nikhil

Dear Sir,

Very Good Morning!

- Usually date of registration is considered as date of ownership but under income tax if other documents have been executed (i.e power of attorney, agreement to sell), sale consideration has been paid, possession of the property has been transferred so buyer would be deemed as owner. Booking of property in itself creates the rights over the property if receipt was issued to you but for safer side we take date of allotment which is conclusive proof of ownership of the property.

- In your case Indexed COA would be (9.50/167*264) = 15 lacs therefore LTCG would be Rs.25 lacs.

- As the maximum period of three years has expired since the date of transfer so now you are liable to pay tax on LTCG @ 20% plus interest u/s 234A/234B/234C.

- All this was required to be shown under ITR for A.Y. 2017-18. As you are salaried person so definitely you have filed ITR for A.Y. 2017-18 so please revise the return till 31.03.2019.

- Please provide year in which expenditure was incurred on interiors to claim the benefit of improvement in capital gain.

- If your total income exceeds Rs. 50 lacs then you need to mention the Assets Liability details in ITR.

Thanks

Hi,

As per Income tax Act, 1961 the amount of capital account shall be invested by the assessee in Capital Gain A/c with the recognized banks.

Since the property was transferred in June-2016 and the consideration was received in the same financial year i.e. Oct-2016, the capital gain arising on sale of property should have been deposited in capital gain a/c on or before 31st July,2017. Since the amount was not deposited in Capital Gain A/c the department would consider that you were going to use the amount for personal purpose and hence the amount shall be chargeable to tax under "Long Term Capital Gains" post considering indexation benefit shall be 18.66L(even after considering the interior cost).

Note: As per latest judgements by the courts & notification issue by the CBDT allotment date is considered for calculation of indexation benefit.

Hence you shall be liable to pay tax @20% on the gains that have so arised.

1. As there was no investment made in Capital Gains A/c in time, now there is no option but to pay tax.

2. The Tax amount shall be 3.85 Lakhs plus interest on delayed payment @1% p.a u/s 234A,23B and 234C.

You can reach us for detailed discussion.

Dear Sir,

Hope you are doing well !

The Income Tax Act allows an individual to invest his proceeds from sale / transfer of any capital asset to avail exemption on such gains if the proceeds are re-invested before one year of such sale or within 2 years of such sale in case such proceeds are utilised for purchase of any property or 3 years in case the proceeds are utilised for construction of the property. But in case if he cannot invest the whole or part of the amount of capital gain or sale proceeds (as the case may be) before the due date of return filing (31st July) for the related assessment year, then he can invest the balance under Capital Gains Account Scheme till he buys or constructs the same within next 2/3 years.

1.As you had not deposited the capital gain amount in CGDS timely. now there is no option .

2.You will be liable to pay the capital gains tax along with the interest on delayed payment @1% p.a u/s 234A,23B and 234C.

Thanks & Regards,

Payal Chhajed

Hi

you have to pay tax ,now nothing can be done to save capital gain tax.