Capital gain
This query is : Resolved
19 April 2012
A person has sold his non agriculture land in 2011. But he has not made any investment till due date i.e.up to July 2011. Now he wants to invest it so whether 54F exemption is available or not. Please give answer with High Court or Tribunal Judgement.
CA PARAS BAFNA
(Expert)
19 April 2012
In case the land has been sold prior to 31.03.2011- the time allowed for investment
has gone away as he can invest U/s 54F prior to the due date of return filing U/s 139(1) .
has gone away as he can invest U/s 54F prior to the due date of return filing U/s 139(1) .
CA Kishore Tallam
(Expert)
20 April 2012
Disagree with expert.
There is one chance where u can save capital gain taxes.
Sec 54F says that the amount which is not utilised shall be deposited in a special account before the date of furnishing return of income u/s 139.
Sec 139 includes 139(5) revised return. A revised return can be filed before the expiry of one year from the end of the relevant assessment year. i.e. for the FY 2010-11 i.e AY 2011-12 u have time to file revised return upto March 2013.
Hence, ask ur client to file a revised return today with a small deletion of expense and then ask him to invest the money now and claim this amount also as exemption.
Note: This can be done only if the original return was filed within due date u/s 139(1).
Let me know if u require any other clarifications.
Regards,
KT
There is one chance where u can save capital gain taxes.
Sec 54F says that the amount which is not utilised shall be deposited in a special account before the date of furnishing return of income u/s 139.
Sec 139 includes 139(5) revised return. A revised return can be filed before the expiry of one year from the end of the relevant assessment year. i.e. for the FY 2010-11 i.e AY 2011-12 u have time to file revised return upto March 2013.
Hence, ask ur client to file a revised return today with a small deletion of expense and then ask him to invest the money now and claim this amount also as exemption.
Note: This can be done only if the original return was filed within due date u/s 139(1).
Let me know if u require any other clarifications.
Regards,
KT
20 April 2012
Yes I agree with Kishore. You have to invest entire amount and not the capital gain by opening a separate bank account
Prakash Kochar
(Expert)
21 April 2012
I disagree with above views,
Sub sect.4 of sect.54F, reads as ---before the date of furnishing return of income u/s. 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of assessee for furnishing the return of income under sub sect. (1) of sect. 139] in an account-----
There are certain judgments wherein amount invested prior to belated return or revised return were allowed as exempt, but as per provision, as on today exemption is not allowable if the deposit is not made before due date u/s. 139(1).
Sub sect.4 of sect.54F, reads as ---before the date of furnishing return of income u/s. 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of assessee for furnishing the return of income under sub sect. (1) of sect. 139] in an account-----
There are certain judgments wherein amount invested prior to belated return or revised return were allowed as exempt, but as per provision, as on today exemption is not allowable if the deposit is not made before due date u/s. 139(1).
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