• How to pay CG tax on property and options to reduce tax liability, if any

I am a salaried individual at 30% bracket.
I bought a residential site in 2006 and sold the site last July 2019.The capital gain tax works out to be 4.5 Lakhs after considering the indexed cost of acquisition.
i am not planning to invest in another real estate asset.
i have not yet paid the self-assessment tax for this transaction yet. from when, i will start paying the interest for it? what is the due date for paying this tax? is there a penalty for me now? what is your suggestion for paying tax now?
can this LT gain(from property) be adjusted against the long term loss from shares? I have LT loss(Rs 73000) from shares for FY 19-20.
can i buy 54EC bonds now to partially reduce tax liability?

please clarify.
Asked 14 days ago in Capital Gains Tax

From the second quarter @1% per month.

You should have paid advance tax.

No penalty.

Should pay it as soon as possible as it is costing you 900 per month.

Yes it can be adjusted depending on type of shares.

No you can't as the limit for that was 6 months from sale date.

 

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
3218 Answers
32 Consultations

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Private limited shares, listed, listed outside India.

Yes you can claim that loss against this profit.

Naman Maloo
CA, Jaipur
3218 Answers
32 Consultations

5.0 on 5.0

Hi

Interest will be charged from second quarter @ 1%.

Please pay tax as per advance tax slab.

No penalty. 

Yes you can adjust the loss.

Time limit for 54EC investment  has been already lapsed 

 

Karishma Chhajer
CA, Jodhpur
1670 Answers
11 Consultations

5.0 on 5.0

Hello Sir,

Long term capital loss on shares can be set off against long term capital gain from any asset. Accordingly, your net taxable income on CG would amount to [deleted] = 360000.Since you have not paid any advance tax, you will be liable for interest under sections 234B and 234C.However,you can buy 54EC bonds till 30th September vide notification 35/2020 dated 24th June 2020 for tax saving purposes.Please let me know if this suffices your concern or in case you need any further clarifications regarding the same.

 

Regards,

CA Nidhi Agrawal

 

 

Nidhi Jagdish Agrawal
CA, Jalna
1 Answer

Not rated

Hi

 

If you don't want to invest in a house property, the only option was to invest in section 54EC eligible bonds. But, such investment had to be made within 6 months of sale of the property. Hence, the option is not available for you now.

 

Yes, you may set off the LTCL from sale of shares with LTCG of property.

Lakshita Bhandari
CA, Mumbai
4733 Answers
294 Consultations

5.0 on 5.0

Interest under section 234B and 234C shall be applicable in your case. Pay the taxes soon to avoid further interest. If payment is done by 30 June 20, interest shall be levied upto June month only. However, even when payment is made on 1 July 20, interest shall be levied for entire month of July @1%.

 

We may assist you with tax computation and interest calculations.

Lakshita Bhandari
CA, Mumbai
4733 Answers
294 Consultations

5.0 on 5.0

- Yes, long term capital loss on shares can be adjusted against long term capital gain. The time limit for investment in bonds is six months from the date of transfer of the site which is now expired. The last date for filing of ITR for 19-20 has been extended till 30.11.2020. You can invest the sale consideration into one residential house property to avail exemption. Time limit for investment for purchase is two years from the date of transfer and for construction it is three years. If you will be unable to invest till 30.11.2020, park the funds into capital gain account scheme to avail the exemption but you should purchase or construct the property within the above time limits.

Vivek Kumar Arora
CA, Delhi
3605 Answers
208 Consultations

5.0 on 5.0

Hello,

 

You were required to make advance tax payment in September Quarter. No penalty would be levied, however, interest liability would be there.

Yes, you can adjust the LTCL from the sale of shares with LTCG on this property.

The last date to buy the 54EC Bonds has expired.

I hope this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2093 Answers
6 Consultations

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The current option for capital exemption available is under Sec. 54F. You can invest the sale consideration amount in another residential property to avail exemption. The time limit for investment for purchase is 2 years from the date of sale and 3 Years in case of construction of house property. In case you are not able to invest the amount till the date of filing of the return, you can transfer the sale consideration in the Captial Gain Savings Account for exemption. However, you will have to utilize such deposited money within the above mentioned time limits in another house property.

Hunny Badlani
CA, Madhya Pradesh
2093 Answers
6 Consultations

5.0 on 5.0

Yes, Short term capital loss can be set off against Long term capital gains.

Lakshita Bhandari
CA, Mumbai
4733 Answers
294 Consultations

5.0 on 5.0

Yes, this adjustment is available.

Hunny Badlani
CA, Madhya Pradesh
2093 Answers
6 Consultations

5.0 on 5.0

Hi,

 

Yes, short term loss from shares can be adjusted against the LT gain from property

Payal Chhajed
CA, Mumbai
4309 Answers
69 Consultations

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Interest under section 234B & 234C shall be applicable. Interest is calculated @ 1% on Assessed Tax less Advance Tax. Part of a month is rounded off to a full month. The amount on which interest is calculated is also rounded off in such a way that any fraction of a hundred is ignored.

Payal Chhajed
CA, Mumbai
4309 Answers
69 Consultations

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We may assist you in tax calculations, Interest calculations & ITR filing. 

Payal Chhajed
CA, Mumbai
4309 Answers
69 Consultations

5.0 on 5.0

Yes.

Naman Maloo
CA, Jaipur
3218 Answers
32 Consultations

5.0 on 5.0

Yes

Vivek Kumar Arora
CA, Delhi
3605 Answers
208 Consultations

5.0 on 5.0

Yes it can be set off

Karishma Chhajer
CA, Jodhpur
1670 Answers
11 Consultations

5.0 on 5.0

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