How much tax

Hi,

- I think date of sale is 07/10/2016. For purchase of residential house, you still have time till 07/10/2018 and for construction you can invest till 07/10/2019 otherwise you need to pay tax on entire amount of exemption availed u/s 54.

- You can withdraw now and pay advance tax@20.8%.

Thanks

Dear Sir,

If you withdraw the amount from Capital Gain Deposit Account Scheme and utilize for any other purpose except purchase/construction of new house. In this case also, you need to pay LTCG tax in FY of withdrawal.The 100% of the amount not utilized will be taxed as long term capital.

Same tax which you had skipped earlier i.e. around 7 lacs. As per section 54 if you don't utilise the amount deposited in capital gain account it will be charged as income u/s 45 as the income of the year in which 3 years and expires and one need to withdraw that deposit.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Assuming you have sold the house property on. 7 October 2016, you have time till 6 October 2019 to buy an underconstruction Property construction of which is getting completed before 6 October 2019.

If you don't buy till than, you will have to pay tax @20% on capital gain amount when you withdraw the amount.

Hi,

If you are not able to buy within time period then you will have to pay tax@20.8% on full capital gain amount.

It seems sale date is October 2016 and not 2018.

Assuming that, you can still keep invested your money in cgds and buy a underconstruction Property till October 2018, which is getting completed before 6 October 2019.

If you don't buy property, you will have to pay 20% tax on capital gain amount in the year of withdrawal.

Hi,

As per section 54 you can buy a residential within 2 years from the date of sale of property. As 2 years have not elapsed you can find a property suitable to your requirements till 2 years.

That aside, if you wish to withdraw from capital gain a/c it i advisable to withdraw it post 2 years and in that assessment year 33 Lacs shall be taxable at 20.8% incl. education cess @4% which comes to Rs.6,86,400. It is advisable to pay advance tax on time to avoid interest on tax amount.

Hope your query is resolved!

Hi,

If the date of sales is 07/10/2016, you still have 2 months to buy a ready residential property (before 07/10/2018) or you can buy an underconstruction property now so that you get the possession before 07/10/2019 to get exemption from the capital gains tax. If you are unable to do so then you will need to pay capital gains of ~7 lakhs.

Hope that clarifies.

Regards,

Nikhil

Hi

You have to pay taxes @20% on amount you withdraw,and tax to be paid in year of withdrawal.