Capital gain tax

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Soumen Roy (Querist)

31 July 2017 If I forget to open capital gain account scheme within 1 yr before the due date of filling return, can I invest it in capital gain account scheme after this? Or shall I have to pay capital gain tax inspite of my purchasing property within 2 yrs as I did not invest in capital gain account scheme?

Anand

Anand (Expert)

31 July 2017 You are required to invest money in CGAS on or before due date of filing return not one year before filing return.
strict interpretation of law would suggest that the money should have been invested before return filing. A benovelent view may be taken by the Tribunal and High Courts but i dont see any assessing officer accepting the contention.

Soumen Roy

Soumen Roy (Querist)

01 August 2017 Can the property be purchased in my mother's name to avoid he capital gain tax?

Anand

Anand (Expert)

01 August 2017 The Income Tax Department is of the view that the property or bonds in which the Full Value of Consideration/Capital Gains is re-invested, should be in the name of the Assessee.
However, there are certain decisions of the courts/tribunals which have held that such investment need not be in the name of the assessee. If you are willing to litigate, if the eventuality arises, you may refer to the following decisions
a) DIT Vs Mrs Jennifer Bhide (252 CTR 444)
b) Shirish Vinayak Godbole Vs ITO (2013-TIOL-413-ITAT-PUNE)

Soumen Roy

Soumen Roy (Querist)

07 August 2017 So after due date i.e 31st july in most of case but before submission of ITR ..can I open capital gain account scheme ? In this case I have not submitted ITR on or before due date?

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