Capital gains transaction

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hardik parasia (Querist)
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11 March 2014 Mr.X has sold a house property on 04/04/2013 and he is planning to buy a new house property by entering into an agreement on 03/04/2014
but is it fine if he makes the payment by 15/04/2014 i.e. after lapsing 1 year
but he will enter into an agreement on 03/04/2014

kindly advise whether deduction will be available u/s54 if payment made after 04/04/2014 but befor filing IT return

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 March 2014 there is no problem at all. you have two years for buying the house property to claim deduction under section 54. The only problem is that you were also required to deposit the capital gains in the capital gains account before filing return for AY 2013-14.

hardik parasia

hardik parasia (Querist)
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11 March 2014 Thanks Mr. Nikhil

but the main issues is of funds arrangement
he is falling short of money
but he is likely to make the payment on 15/04/2014
so is it ok?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 March 2014 let me correct my earlier comment...you need not worry at all. make the payment on 15 April...as long as you make the payments before filing the tax return for AY 2014-15, you are fine.. I misread 04/04/2013 as 04/03/2013

hardik parasia

hardik parasia (Querist)
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13 March 2014 THANKS A LOT FOR UR VALUABLE SUPPORT

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 March 2014 you are welcome Hardik

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