Capital gain tax investment by nri turn to resident

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m.v.subramaniyan

m.v.subramaniyan (Querist)

01 August 2011 My brother in law basically Indian origin went to USA for employment and got green card also from USA-ie NRI.He bought a house at Chennai before few years and now sold in April 2011 with capital gain after hie return to India in the month of May 2010 .My query is
.whether he can invest the capital gain in FD for 5 years in a non banking institution which gives high income or to deposit with any nationalized bank under capital gain account scheme until decision is taken for further investment.
Whether it should be shown in the return for the fin year 2011-2012 as capital gain or not.
I request the forum for advice

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

01 August 2011 If deposited in NBFC capital gain exemption can't be availed / allowed. Capital gain portion may be deposited in Capital Gains Account Scheme,1988 to avail the exemption under section 54 subject to the satisfaction of the conditions mentioned in that section.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 August 2011 "deposit with any nationalized bank under capital gain account scheme until decision is taken for further investment "

Deposit the amount of Capital Gains in the above manner.

Whether it should be shown in the return for the fin year 2011-2012 as capital gain or not.

Reply- The Capital gains will be shown and correspondingly exemption U/s 54 can be claimed in respect of the amount of capital gain deposited in the Capital Gains Deposit A/c .

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