Capital gains

Dear Sir,

Hope you are doing well !!

-To claim capital gain exemption, the new residential property must be purchased either 1 year before the sale or 2 years after the sale of the property.

In case of construction, the new residential property must be constructed within 3 years after the sale of the property.

Please note that in order to claim exemption, you need to invest the capital gain amount if a house property is sold. However, in case of sale of a land, entire sales consideration needs to be invested.

-You are required to deposit amount in the capital gains account before furnishing return of income but not beyond due date for furnishing return of income .

You can retain the capital gain in your Savings Account till the date of filing the Income Tax Return or 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.

You will have to claim the exemption in current FY 2019-20.

The TDS deducted would be reflected in your 26AS .

Yes, you can claim this amount refundable while filing your IT return.

Since the sale took place in August 2019 you will have to claim such refund while filing your return of income for FY 2019-20 i.e. next year.

Also you can keep the amount in your saving account till filing your return of income for FY 2019-20. If you use it before that no need to deposit the amount otherwise you need to deposit it in capital gain account scheme before filing your income tax return to claim exemption.

I would again suggest you to hire a proper CA to help you not since you are not much aware about provisions. I can help you out.

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

Thank you.

Hello, 

This whole transaction will be part of return for F.Y. 2019-20 A.Y. 2020-21.

you need to keep this capital gain for construction of new house in Capital Gain Savings Account. You can transfer the same before the due date of filing of return for the same period i.e. 31st July 2020.

TDS credit in Form 26AS will also be available in F.Y. 2019-20 A.Y. 2020-21.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

TDS of Rs. 55000 will appear as credit in Form 26AS in F.Y. 2019-20 A.Y. 2020-21, which can be claimed as refund depending upon your total income for the year.

Hi

If construction is not completed by 31st July 2020 or date of return filing for FY 19-20, you will have to deposit (18 lacs - amount invested till that date) in CGDS account.

The capital gain would be shown in return for FY 19-20 and exemption would be claimed.

TDS shall appear in 26 AS within 7 days of filing 26QB by the buyer. Ask for Form 16B from the buyer and copy of Form 26QB. It would be claimed while filing ITR for FY 19-20.

Yes, you can claim the TDS while filing ITR for FY 19-20 which would be in next year.

Hello Sir,

-Yes, you can keep the money in saving account till the due date of ITR filing i.e. you need to deposit the money in capital gain account scheme on or before 31st July 2020.

-It is a current year transaction so you need to disclose the same in AY 2020-21 i.e. FY 2019-20 and claim the exemption.

-It will be shown in 26AS within 7 days of filing 26QB.

Yes Sir, you can claim the tds while filing ITR for FY 2019-20.