• Return file and capital gain tax

I am Nri.Property in teghoria (Kolkata) purchased in2011 for 2029800/-.sold in 2016.for4700000/-.stamp duty 5000/-.invested in under construction property in 2018mar-3300000/-.Kept the money all this time in nro account fd.TDS deducted fom the interest gained.Still to file return.Advise about tax return filing and how much to pay capital gain tax.
Asked 5 months ago in Capital Gains Tax from Qatar

Have you filled 2016 and 17 return? Which year return is pending

Vidya Jain
CA, Kolkata
646 Answers
15 Consultations

4.8 on 5.0


As you have already invested money in under construction property timely.

Just clear one thing have you filed return of last years?

Karishma Chhajer
CA, Jodhpur
858 Answers
4 Consultations

5.0 on 5.0


Hope you are doing well !

In case the net consideration is not re-invested within the last date of filing of return of income then, the amount should be deposited in capital gain deposit account scheme. The amount so deposited in capital gain deposit account scheme should be used for purchase / construction of the residential house within the specified period.

In your case, you have not deposited the money in capital gain deposit account.

You will be liable to pay capital gain tax around Rs 3 lakh.

Payal Chhajed
CA, Mumbai
1678 Answers
11 Consultations

5.0 on 5.0

If you had not shown any investment against capital gain earned at the time of filing the return in the year in which you earned capital gain then you could have paid tax on it. Please share your filed ITR of the concerned transaction at my email I'd aroravivek1982@gmail.

Vivek Kumar Arora
CA, Delhi
2100 Answers
89 Consultations

5.0 on 5.0

As you are saying, you have filed the return of that years.

Have you paid tax on said transaction?

Have you shown said transaction in your returns?

Please share your ITR copy with us on below mail id:


Payal Chhajed
CA, Mumbai
1678 Answers
11 Consultations

5.0 on 5.0

Since you have not shown investments in the year of sale, have you paid taxes in the year of sale on the capital gains?

I will need to have a look at your ITR along with your computation of income to understand this better.



Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

It's strange that you didn't receive any notice during these years to prove the exemption you might have claimed during the year because you had kept money in nro account and not capital gain account. Well now you can't revise income tax return for 2016 and your purchaser was also at default since he didn't deduct your TDS. Now you can only revise income tax return if you receive any notice u/s 148 of the income tax over your email or at your registered address.

Also investing in new property won't save your tax as if you are going to invest in an under construction property you need to invest the money in special capital gain account and not in nro fd account so I don't think you will get any exemption from your capital gain.

So you need to pay capital gain tax @20% on sale consideration less indexed cost of acquisition which equals to 360000

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

Thank you

Naman Maloo
CA, Jaipur
1021 Answers
6 Consultations

5.0 on 5.0


The capital gains were to be shown in the return of income for the year of sale 2016. If the amount was not deposited in capital gain deposit account, the capital gains were taxable in that year itself.

Have you shown the Capital gain or investment in the return of income??

Lakshita Bhandari
CA, Mumbai
2663 Answers
105 Consultations

5.0 on 5.0

Although the amount is invested within the stipulated time period for claiming exemption under section 54, since the amount was to be deposited in CGDS account before due date of return filing for the year of sale, no Exemption shall be granted.

Lakshita Bhandari
CA, Mumbai
2663 Answers
105 Consultations

5.0 on 5.0

• Capital gains earned by selling the property would be exempt from tax if such gains have been used for construction of a new house or has purchased a site and constructed a house thereon, within a period of 3 years after the sale of the original house.

• If the amount of Capital Gain is not utilized for the above purpose, then before the due date of filling income-tax return, it should be deposited in a Bank under Capital Gains 1988 Account Scheme.

• As you have failed to deposit this amount in the specified scheme, it should have been charged to income-tax as capital gains in the year ended March 2016.

• Capital gains should be calculated as Selling price less indexed cost of acquisition less all the expenses incurred to effect the sale.

• As there is a default in reporting March 2016 capital gains, there would be tax and interest applicable to you. Further, the Assessing officer may deem to levy penalty aswell.

Jasmina Jain Shah
CA, Greater Mumbai
210 Answers
3 Consultations

5.0 on 5.0

Sorry u needed to keep that amount in capital gains account, if not kept then not eligible for exemption.

Priyank Kumar
CA, Agra
48 Answers

5.0 on 5.0

If you have disclosed the sale of the property in 2016, you'd have most likely claimed exemption u/s 54 or paid tax on Long Term Capital Gains. If you did claim exemption u/s 54, it was not correct but it might have been still processed by the IT Department without scrutiny because over 95% of the small cases are processed under summary.

Please check the status of your returns and compliance issues in the e-filing portal of the Income Tax Department. You may then take professional advice from your CA.

B Vijaya Kumar
CA, Hyderabad
891 Answers
67 Consultations

5.0 on 5.0

As entire proceeds are invested in house property which will be constructed within 2 years.. i think no capital gain taxes...

Amruta Harshal Baser
CA, Jalgaon
57 Answers

4.9 on 5.0

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