Tax on capital gain for property sale

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This discussion addresses capital gains tax implications for a property sold in November 2019. The user is concerned about registering a new property purchase due to lockdown restrictions and how this affects their ability to defer capital gains tax. Guidance is provided regarding extensions for investment and purchase deadlines under Sections 54 to 54GB of the IT Act, including the possibility of depositing the capital gains amount in a Capital Gains Account Scheme before filing the tax return.

ankur jain

ankur jain (Querist)
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13 April 2020 Hi

I have sold one property in 2019 nov. Bought new property in march but due to lockdown cannot register the property.

So should i put the remaining amount in capital gain account as cannot register the property or is there anyway i can delay registery due to lockdown and let money in my personal bank account.

As i dont want to put money in capital gain account and register property once lockdown os over and court is open.

Thanks

swasti

swasti (Expert)
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14 April 2020 According to the Ordinance passed on 31.03.2020 -

"The date for making investment/construction/purchase for claiming roll over benefit/deduction in respect of capital gains under sections 54 to 54GB of the IT Act has also been extended to 30th June 2020. Therefore, the investment/ construction/ purchase made up to 30.06.2020 shall be eligible for claiming deduction from capital gains arising during FY 2019-20."

Hope this gives a solution for your problem.

Soumitra Basu

Soumitra Basu (Expert)
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15 April 2020 Investment can be made upto March, 2021 for availing benefit under section 54.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 November 2021 Even otherwise, as per section 54, time limit to purchase new property is 2 years, while deposit of CG amount in CGAS, 1988 is before filing of the return. So, no need to worry, if the amount is paid till filing of return.

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