LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Long term capital gain tax

santi (MBA) (24 Points)

03 March 2015

sir

i have sold my commercial property which was brough in 1972 and sold it for 3.5 cr in the year 2008 and have have invested the total proceeds in development of commercial property worth more than 6 cr, do i need to pay long term capital gain tax. Help on the matter would be appreicated as it is SOS

Reply
Follow
Share

2 Replies

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 03 March 2015

Dear Shanti

On transfer of Capital Assets attracts capital gain in the year in which such transfer made. There is many exemption to avoide tax liability after fulfilment of certain conditions but

As you mentioned, you have transfered a commercial property and reinvested the same in development of another commercial property not eligible to any exemption under section 54 to 54F of income tax act 1961.

You will have to pay tax on whole sale amount 3.5cr.

If u allraedy been filed income tax return for the AY 2019-10 without mentioning the long term capital gain than it could be attract a penalty in subsequent years for concealment of income under section 271(C) of income tax act 1961 upto 100% to 300% of tax Evaded.