It return
This query is : Resolved
08 November 2013
My client had sold a house property in the financial year 2013-2014. He intends to purchase another house property in next financial year. How under which head he has to show his sale proceeds and what is effect of capital gain tax on such sale proceeds for assement year 2014-2015.
09 November 2013
the transaction shall be shown under capital gains. If he wishes to buy the house (consuming all the capital gains made)before for filing the return for AY 2014-15 , then there are no capital gains tax implication (subject to satisfaction of condition set in Section 54).
However, if he intends to buy the house after the due dates for filing tax returns, he shall have to deposit the capital gains made in a bank account to opened under under capital accounts scheme and reinvest the whole of the deposits in this bank account for purchase of a new house within two years of sale or construct a new house within 3 years of sale of the old house.
In case, the above provisions are not followed, your client will have to pay taxes.
However, if he intends to buy the house after the due dates for filing tax returns, he shall have to deposit the capital gains made in a bank account to opened under under capital accounts scheme and reinvest the whole of the deposits in this bank account for purchase of a new house within two years of sale or construct a new house within 3 years of sale of the old house.
In case, the above provisions are not followed, your client will have to pay taxes.
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