Sir / madam my mother got flat as gift from her brother in August 2014. brother purchased from builder in February 2011 for 3.8 lakhs. my mother sold flat in June 2017 for 8.1 lakhs. her auditor took August for indexed acquisition cost instead of February 2011 and told her capital gains tax is 74 k. she made capital gains tax deposit in 2018 deposit amount 3.7 lakhs. she couldn't purchase another property. bank forced her to pay 74k as advance tax in February 2020 for deposit withdrawal. capital gains is only 1.8 lakhs if February 2011 is taken for calculating indexed acquisition cost. hence tax should be 36k. how to get 38 k back. shall we file revision for 2018. or shall we explain this in her April 2020 income tax return. regards
Hi,
Unfortunately, the deadline to revise return for FY 2017-18 has elapsed. Thus, you can revise that.
However, in the current year's return, you may choose to show actual reduced capital gain and claim the refund if excess advance tax paid. Please note you may receive queries from income tax department and then you will have to explain this.
Hello,
You cannot revise the F.Y. 2017-18's return. And Rectification won't help as well.
You can declare the actual reduced capital gain in the current year F.Y. 2019-20's return (for which advance tax has been deposited) and claim the refund of excess tax paid.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
We need to first change 2018 return and simultaneously then show the same in 2020 return because bank/ AO has not done anything wrong in asking 74k as tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi,
You need to file current year's return with reduced capital gain.
We may assist you in preparation of submission and related communications with the department.
