Having sold property i will use to buy new property after a year atleast so in meanwhile i wish to use these funds in (non speculative fno) ETF say nifty or gold . Or further if i am in high tax bracket i can transfer fund to wife or daughters ( both minor ) or HUF or Company and buy etf in thier name exit on profit and divert this fund back to my account when i buy property or file itr. pls advise.
Hi
In case amount of capital gains are not invested till due date of return filing of the year of sale, you are required to deposit the same in CGDS account. Till that time, you may invest elsewhere.
Further, clubbing provisions shall apply on such income earned through funds contributed by you and it will become taxable in your hands only.
1. If you don't invest the fund before filing ITR capital gain shall be taxed.
2. If you gift it to your wife or son and earn profit that profit will be still taxed in your hand.
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Thank you
- you can do this but whatever income will be generated will be clubbed and taxable in your hands only.
If you have to save on capital gain tax, you will have to deposit the funds in Capital gain account scheme within 6 months from date of sale.In case you use it in any other manner you will have to pay capital gain tax on the amount of capital gains.
Even if you divert the funds the income from it will also be clubbed in your income.
Hello,
For capital gain exemption, you are required to either invest or deposit the amount in CG saving account before the due date of filing of the income tax return. Till that time, you can use these funds.
Clubbing provisions would be applicable in case of income generated through the usage of these funds.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You must have to use fund for eligble property or deposit with Bank under Capital Gain Scheme a/c before due date of filing ITR other wise have to pay LTCG without any deduction
Hi
you need invest capital gain before return filling or you can open capital gain deposit account otherwise it will be taxable.
Here provision of clubbing will be applicable & earnings will be taxable in your hands.
Dear Sir,
Hope you are doing well !!
-If you do not get a chance to invest in a profitable property immediately and still want to save your long-term gains from being taxed, you can invest your capital gains in CGDAS by approaching any public sector bank. The timeframe for the purchase or construction of the property remains unchanged in this case as well. But you can utilise this account momentarily so that you save your gains from being taxed and have more time to finalise a property for reinvestment.
It is required to deposit such unutilised capital gain in the capital gains account before furnishing return of income but not beyond due date for furnishing return of income.
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
-Clubbing provision will be applicable on the same.
The income earned shall be taxable in your hands only.
