I sold inherited property on 1st June, 2018. The property was purchased in year 1968 by my Father. The property is sold for 1.25 CR. I didn't invested in Capital Bonds but hold the money in normal FD account linked to my saving account. I have three questions: Please confirm when shall I open Capital Gain accounts as already 9 months passed of said transaction. 2. Do I need to submit interest earned during 9 months in Capital Gan Accounts ? 3. What is the last date to submit said amount in Capital Gain account with no penalties 31st March or 31st July?
Hi,
Hope you are doing well !!
-To be eligible for exemption, account must be opened and funds must be deposited therein before the due date of filing of the income tax return for the relevant financial year i.e. 31st July of the respective assessment year to claim exemption under the said Act on such capital gains.
-You don't need to transfer interest amount earned during 9 months in Capital Gain Accounts.
To save capital gain tax you will surely be required to invest the amount in capital gain account and it needs to be done before filing your return of income i.e. before 31st July.
Also this would only be useful if you are going to use it to purchase another residential property and you need to only invest that much amount of which you want to claim exemption so there is no need to invest interest earned by you at all.
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Thank you
Hi
Capital gain account is to be opened when you want to claim exemption to save capital gain tax
Capital gain tax can be saved by reinvesting in property and if you are not able to invest within frame then you can deposit amount in capital gain account.
It should be deposited before return filling date for that year ,So you can deposit in capital gain account till July 2019.
Hope it helps
The interest earned from the normal FD should be offered to tax as income from other sources. The income-tax law provides the condition to be deposited in CGAS before the due date of filing return ie by 31 July 2019. So by 31 July you should ensure to transfer the sale proceeds in CGAS and utilize the same within the time period.
Dear Sir,
You can retain the capital gain in your Savings Account till the due date of ITR filing.
The last date of filing ITR is for the financial year in which capital gain arises. Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year. Under extraordinary circumstances, it can be extended by the Finance Ministry
No, you do not need to submit interest earned during 9 months in Capital gain Accounts.
It should be tax as income from other sources.
As I kept the fund in FD. It will be taxed on earning interest more than 10 thousand. Can I claim the tax while filling income tax return? What are the documents necessary to claim the deducted interest?
Hi,
Yes, you can claim the TDS deducted on interest subject to actual tax liability.
Form 26AS is sufficient.
Hi,
Once this TDS is reflected in your return, you can adjust it from your final tax liability if any. You may also end up with a refund due from the government if you did not have any tax payable.
Do take out time to check your Form 26AS on regular intervals, so that if any corrections are required, those can be done on time.
Hi,
- If you do not invest before filing of ITR i.e. 31.07.2019 then you are required to deposit the capital gain amount in CGAS.
- You need to pay tax on interest income earned on such amount.
Thanks
You just need form 26AS which will show your TDS deducted.
If you need any help in filing ITR do get in touch.
Thank you
Hi
If you want to invest the money in another residential house property and claim capital gain exemption, you need to deposit the amount in capital gain deposit account before date of filing of return or due date of return filing (31 July 2019), whichever is earlier.
The interest need to be deposited.
If the property sold was a residential house property (not a land), you need to deposit only the capital gain amount and not the entire sales consideration in the capital gain deposit account.
Such interest earned shall be taxable as Income from other sources. Include such interest income in the ITR.