CAPITAL GAIN ON SALES OF LAND ON 28/03/2008

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This query is : Resolved

CA Hemant T Dewani (Querist)
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28 April 2008 AN ASSESSEE HAD A LAND WHICH IS PURCHASED ON 21/03/1980 FOR RS 50000/-& SOLD DURING THE YEAR F Y 2007-08 ON 28/03/2008 FOR RS 1500000/- BUT ASSESSEE HAD NO ANY INCOME BECAUSE SHE IS A SENIOR CITIZEN AND IN THIS TRANSACTION SHE HAD INCOME OF LONG TERM CAPITAL GAIN EARNED ON 28/03/2008 BUT IN INCOME TAX RETURN INTEREST IS CALCULATED U/S 234A/B/C BUT HER'S INCOE IS ONLU LTG &nO OTHER INCOME SO INTEREST U/S.234A/B/C/ IS APPLICABLE OR NOT

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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03 May 2008 Hi Hemant,
Interest u/s :
1) 234A will be charged if assessee has filed return after due date i.e. 31 July in this case, irrespective of source of income, in this case assessee has income from CG so should file return before 31 July to save interest under this section

2) 234B will be charged, for the period 1 April 08 to date of filing of return, if assessee has not paid advance tax before 31/03/08 as she had income on 28/03/08

3) 234C(1)(b), i copy a para here :

[Provided that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of under-estimate or failure to estimate

(a) the amount of capital gains; or

(b) --ignore it--

and the assessee has paid the whole of the amount of tax payable in respect of income referred to in clause (a) or clause (b), as the case may be, had such income been a part of the total income, as part of the [remaining instalments of advance tax which are due or where no such instalments are due], by the 31st day of March of the financial year:]

Means she had to pay advance tax before 31/03/08 as she had income on 28/03/08. if she has not paid, interest will be charged for 1 month on amount of advance tax.