Do i require to open a Capital gains account
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 July 2011
Hi, my mother owns a property in Bangalore and would like to sell the property, and construct a new one by purchasing a site within 5 months. The buyer will be giving her 20 lakhs by cheque and 5 lakhs cash for the property.Do i have to open a capital gains account for the same. She is a housewife and 64 years of age. She gets only pension income of Rs. 3800.00 pm.
does she even need to file a income tax return for the same. and how can i do it.
does she even need to file a income tax return for the same. and how can i do it.
03 July 2011
When a Property was sold, the sale proceeds (if we are not readily using those sale proceeds immediately for purchase of another house) should be deposited in Capital Gain A/c Scheme with in 6 months or before filing the return of income whichever is earlier.
In the above scenario, you would like to purchase a land and would like to construct a building immediately and i thought you don't require to deposit your sale proceeds into capital gain a/c scheme. However it is better to construct the building immediately as early as possible to avoid the rules and regulations of deposit a/c scheme and Income Tax.
If the sale proceeds have not been used completely for constructing the new house, the remaining amount shall be chargeable to tax. We need to file a return of income in such a case.
Regards,
CA M Sreenivasa Rao.
In the above scenario, you would like to purchase a land and would like to construct a building immediately and i thought you don't require to deposit your sale proceeds into capital gain a/c scheme. However it is better to construct the building immediately as early as possible to avoid the rules and regulations of deposit a/c scheme and Income Tax.
If the sale proceeds have not been used completely for constructing the new house, the remaining amount shall be chargeable to tax. We need to file a return of income in such a case.
Regards,
CA M Sreenivasa Rao.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
