Regarding capital gain

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This query is : Resolved

saurabh kar (Querist)

29 February 2012 An ancestral property was sold off and the first installment of the money given in June 2011. I did not put it in section 54ec tax saving bonds. please suggest if this can be done now by paying some minimal tax or do i have to pay a flat 20% tax

Prasad Modak

Prasad Modak (Expert)

01 March 2012 You can deposit the same on or before closer of financial year.

saurabh kar

saurabh kar (Querist)

01 March 2012 I did not get what you meant by deposit the "same". Deposit the tax or buy the 54E bonds before the financial year.

Prasad Modak

Prasad Modak (Expert)

01 March 2012 buy the bonds

saurabh kar

saurabh kar (Querist)

01 March 2012 But the rule states that it has to be done "within" 6 months of getting amount. Since the promoter is giving the amount in a staggered fashion , my mother got the first installment on June 1st. 6 months in that case was December 1st. Won't it matter if i invest it after 9 months. please suggest.

Prasad Modak

Prasad Modak (Expert)

01 March 2012 I believe that in the first installment itself, you have not earned any capital gains...

Also as per law 54EC bond investment has to be within 6 months from the date of transfer or sale of capital asset and not from the date of receipt.

However, in case if you have not met the deadline, then it is always better to pay it off on or before the end of financial year.

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