One of my client has a LTCG of Rs 160,000/- in F.Y. 2013-14. As we know to claim exemption u/s 54F one has to purchase a residential house property within 2/3 years, and if has not invested the same into purchasing house property by the due date of filing ITR (31st July in my clietn's case) then he has to deposit the same into Capital Gain Scheme Account.
Now the matter is my client forgot to deposit the same into the same account by 31st July 2014, Now what's the solution ? The client has purchased house property one week back on 16/08/2014. We want to claim exemption. Is there any case law ? Please reply.
22 August 2014
no nothing can be done except u need to prove why there was so much delay in invetsing the money and only if cbdt allow u can do so u/s 119(2)b
22 August 2014
Thank you for your reply Sir, what is the detailed assessment procedure...? I think Since the govt want people to purchase residential houses so they can condone such a minor thing to deposit money into Invt A/c.
22 August 2014
how its a minor thing ? when so big time is given then how can they allow and how can they pass order against this sec 54F ???????????????
22 August 2014
u need to file a condonation petition and stating the reason which must be real ,genuine and must be able to convince cbdt then only they can allow u/s 119(b)
23 August 2014
then why you worry. as long as the money is utilized before filing the return under section 139 (including section 139(4)) you will get the exemption.
Section 54F(4) states that "the amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return"
If you invest before filing the return, then you get the exemption
23 August 2014
Thank you for your reply sir/madam, actually I do think the same...but I'm not getting any strong evidence in support of my/your claim....I also feel that as long as the money is being utilized for purchasing house exemption should be granted...since the govt wants people to purchase home....Could you please tell me regarding Capital Gain Scheme A/c which says you have to deposit the amount ?
CAclubindia
