Hello Tax experts,
My query is related to the interplay of Advance Tax, Long Term Capital Gains and Section 54F exemption for some recent financial transactions.
I sold shares in Jan 2024 and earned Long Term Capital Gains > Rs. 1 lakh. I plan to invest the entire sale proceeds in a residential property to avail LTCG tax exemption under Sec 54F.
1. So, do i need to pay advance tax on the LTCG ( @ 10% of LTCG) in March 2024 quarter to avoid interest/penalty under Sec 234A/B/C?
2. If I have to pay advance tax by Mar 2024, it means that i have effectively paid the LTCG tax to IT dept, and in future I'll have to seek refund of it when I apply for Sec 54F exemption. Is this understanding correct? If not, please correct me.
3. If i skip paying advance tax by Mar 2024 and deposit entire sale proceeds into Capital Gains Account Scheme (CGAS) by 31 July 2024, will i still be charged interest/penalty under Sec 234A/B/C?
4. Any other ways by which I can eliminate the need to pay taxes upfront/block my money whether in form of Advance tax, CGAS deposits, Sec 54F exemption etc.
Requesting genuine advice from the experts on this forum and thanking them in advance for their valuable time and advice.
CAclubindia
