• Non-payment of Capital Gain Tax

A plot purchased in 1985-86 in municipal area was sold in 2012-13 and entire sale proceed was kept in saving bank accounts. Tax on CAPITAL GAIN could not be deposited in 2013-14. 

Now, I need to know if tax can be deposited now or not??
Can the sale proceed be invested in current year??
Asked 1 year ago in Capital Gains Tax from Nasik, Maharashtra
As the capital gain pertains to AY 2013-14, and you have not disclosed it in your income tax return and also did not invest the capital gain amount in any capital gain exemption scheme, so you are liable to pay capital gain tax.
To avail capital gain exemption :
1) the capital gain need to be invested with six months of the sale proceed in capital gain bonds (NHAI or REC bonds)
2) The capital gain amount can be deposit in Capital Gain Account Scheme (CGAS)within six months of sale proceeds- if there is any intention of buying or constructing the house within three years of depositing a amount in CGAS.
3) If you had bought any house with one year before the sale or within two years after the sale of plot then you can claim capital gain exemption.

if above three mentioned conditions are not fulfilling then it falls under undisclosed income and you are required to disclosed it under ( Income Declaration Scheme)IDS-2016 by filling form 1.
Vishakha Agarwal
CA, Bangalore
431 Answers
56 Consultations

5.0 on 5.0

I presume the plot was sold in the financial year 2012-13 relevant to the assessment year 2013-14 but you did not either file the return or did not disclose the LTCG in the return. 
If the amount received by you on sale of the plot is more than Rs 10 L or even the amount deposited in your Savings Bank account is more than Rs 10 L, you should have normally received a notice from the IT Dept. Pl. check the compliance part in your account in the efiling portal. 
If it is reflected, you need to respond to the compliance requirement suitably, preferably with professional help. If it is not reflected, the chances of the IT Dept issuing a notice are remote, though not ruled out. 
You will not be able to file IT Return now. You also lost the opportunity to declare the income under ICDS. However, you can explore the possibility of disclosure under the new Disclosure Scheme.
B Vijaya Kumar
CA, Hyderabad
834 Answers
47 Consultations

5.0 on 5.0

Dear sir,

Please check the compliance section of your online account at income tax portal or take help of any CA. If you have got any motice, please reply to the same.

If you have not received any notice, then you can disclose this income in new disclosure scheme and pay tax 

Please feel free to call/revert in case of any doubts

Thanks and Regards 
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2788 Answers
114 Consultations

5.0 on 5.0

Hello Sir,

If the proceeds are not deposited in Capital Gain Scheme, then you will have to pay taxes on the entire Capital Gain Account.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Rohit R Sharma

Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

The tax cannot be deposited now. Also the sale proceeds cannot be invested in the current year.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

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