Hello, I sold a parental property in dec 2016 purchased by my father in 2006. But because of some personal problem were not able to invest long term gained amount in capital gain bonds before 6months of date of sell. Can I still invest as even last date of filing taxes has passed for this year? And if not then what option I am left with apart from paying income tax on property gain? Please advise.
You can't invest in the bonds now.
What you can do is.. deposit the amount in capital gain deposit scheme. The amount shall be different in case the property sold is residential or commercial.
But you'll have to open the account and deposit the amount by today itself as today is the last date for return filing.
You can use the amount deposited later for eligible investments under capital gains.
Hi,
Today is the last day for filing return of income. It has been extended from 31 July 2017.
If you want to save tax, your other alternative is to invest in another property within 2 years from the date of sale of old property. In case the property is under-construction, then the time limit is extended to 3 years. However, to do so, you will have to deposit the capital gains amount in a Capital Gain Account Scheme with a bank. As and when you need the money to buy a house, you can withdraw from that account. However, you will have to invest in this account by today, that is the last date of filing of return.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hi,
You have to open an account in capital gain deposit scheme with your bank and deposit the money by today in that account. Then only you can claim exemption from paying capital gains.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
Thanks Lakshita mam, actually I sold property on behalf of my sister who is in USA right now through a power of attorney. So, not sure if I would be able to open account as well on her behalf. Can we still buy a residential property to put this gained amount there and what will be the last date to re-invest in property?
If the property which you have sold was a commercial property then you have to deposit entire sale consideration in your capital gain account.
If the If the property which you have sold was a residential property then you have to deposit only capital gain amount in your capital gain account.
Please make sure you file your return by today.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
Most welcome.
I am sorry but now there is no way out . You'll have to bear the capital gain taxes.
Had it been even 2-3 days before, we could have opened the account and then invested later.
Thanks Mr Abhishek and Ms. Keerthiga, I must rush to bank to follow-up on account procedure as I am investing the money on-behalf of my sister who is not in INDIA.
It would be the best if you can open the account today and deposit the amount. Make sure if you do so, also file your return today itself.
Yeah..You should rush.
Hello,
I assume that you might have invested the money in capital gain tax saving account by now.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
