CAPITAL GAIN INVESTED NEXT FINANCIAL YEAR

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A client sold a property in the 2021-22 financial year and purchased a new residential property in the 2022-23 financial year. The question is whether they can claim an exemption under Section 54F of the Income Tax Act, as the purchase occurred after the sale proceeds were received but before the Income Tax Return filing deadline for the relevant assessment year. The consensus suggests that if the return is filed before the due date and the investment criteria are met, the exemption should be claimable.

raghavendra b

raghavendra b (Querist)
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25 July 2022 DEAR SIR,

PLEASE SUGGEST ME, ONE OF MY CLIENT PURCHASED A SITE IN FINANCIAL YEAR 2016-17 AND HE SOLD THE SITE IN THE FINANCIAL YEAR 2021-2022. HE RECEIVED ENTIRE AMOUNT MARCH 2022. BUT HE PURCHASED RESIDENTIAL HOUSE PROPERTY IN THE YEAR OF 2022-23. BUT THE ENTIRE AMOUNT DEPOSITED IN HIS S/B ACCOUNT AND HE DID NOT DEPOSITED ANY CAPITAL GAIN SCHEME UNTILL HE GOING TO PURCHASE ANOTHER RESIDENTIAL HOUSE PROPERTY U/S 54F. NOW CAN WE CLAIM EXEMPTION U/S 54F BECAUSE HE PURCHASED THE HOUSE PROPERTY IN THE YEAR OF 2022-23. OR HE HAS TO PAY CAPITAL GAIN AMOUNT WHEN HE RECEIVED THE INCOME OF SOLD PROPERTY.

PLEASE SUGGEST ME BECAUSE WE NEED TO BE FILED HIS IT RETURNS WITHIN DUE DATE.

THANK YOU

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2022 If he had purchased the residential property before filing ITR for AY 2022-23, he can claim the exemption in it.

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raghavendra b

raghavendra b (Querist)
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25 July 2022 THANK YOU SIR,

BUT HE INVESTED HIS ENTIRE SALE AMOUNT IN THE FINANCIAL YEAR 2022-2023. BUT CAN WE INVEST THE AMOUNT BEFORE ONE YEAR OF SALE PROCEEDS.

NOW WHAT TO DO SIR, HE HAS TO PAY CAPITAL GAIN TAX ON IT.

REGARDS

raghavendra b

raghavendra b (Querist)
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25 July 2022 THANK YOU SIR AND SORRY,

NOW WE YET TO FILE HIS INCOME TAX RETURNS HE PURCHASED IN THE PROPERTY DATED ON 07-07-2022 SO WE CAN CLAIM THE EXEMPTIONS BECAUSE NOW WE ARE GOING TO FILE THE IT RETURNS. FOR YOUR INFORMATION DEAR SIR, HE PURCHASED RESIDENTIAL HOUSE PROPERTY WORTH OF RS. 3000000/- HE TOOK THE LOAN FROM THE BANK AND HE INVESTED ENTIRE SALE AMOUNT OF 1225000/- ON THE PROPERTY. SO HE COULD CLAIM THE ENTIRE SALE AMOUNT OF SOLD PROPERTY.

THANK YOU SIR

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2022 Yes, he is eligible for the deduction......

raghavendra b

raghavendra b (Querist)
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25 July 2022 THANK YOU SIR

YOUR REPLIES ARE VALUABLE FOR ME

REGARDS

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 July 2022 You are welcome ...

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