Time limit U/s54EC-INSVST Pls Solve My querry!

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2010 Respected Experts!
My Q is regarding Investment in Nhai Bonds u/s54EC.

Q1) If i am the seller(80 Yrs) & buyer gives me part payment for 3yrs.i.e for
AY 09-10 70000.
AY 10-11 3,00,000.
AY 11-12 2,30,000.
But this amt are recived as an Advance then when should i start investing in Nhai Bonds u/s 54EC as the time limit mentioned for investing is within 6mths from date of transfer of capital asset?(but still this propertyis not transferred in the name of buyer & the posession is with me only)

Q2)Whether I need to file ITR for the above amount recived & for which AY?
And under which Head of Income it will be taxed?

Deepak Gupta

Deepak Gupta (Expert)

12 December 2010 Any amount received as an advance against sale of assets to take place at a later date will be considered as sales consideration for the financial year in which the asset is actually transferred. Time limit for investing in any bonds u/s 54EC will be calculated from the date the transfer will take place. till then enjoy the benefit of tax deferement.

Thus, there is no need to include the above amounts in the taxable income until the asset is actually transfered.

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2010 Thank You Sir for Timely answering my Querries ! On ur Reply I would like to ask you few more question.

Q1 to Your Reply 1)
I have Checked That u/s 2(14)Clause(3)-definition of Capital asset.In our case it within the jurisdiction of Local Municipal Board &as per the latest Census report of 2001 there are more than 10,000 persons alive.Hence it is not a qualified for rural agriclutral land and therefore it is a capital Asset.
My question is from which Authority can i get the Valuation of the said land as on 1.4.81?
I met Talati,URBAN VALUATION DEPARTMENT,Taluka. Daharangoan,Dist Dharangoan and he repied that we don not have any records of The year 81-81 since that dept was set up only in 89-90 onwards & he therefore doesnt have record.

Q2)to your reply2)
Sir if Rs. 50,00,000 is taken as full value of consideration then even after investing Rs. 13,00,000 (the amt which we are recieving as sale value) so in this case Net LTCG COMES to 37,00,000/
But we do not have this much amt as we are selling @ low rate this due to some family reasons and ill heath of my Granny and there are no other buyers for it. So how can i save Tax on Rs. 37,00,00,000?

Q3) If in the year of Tranfer if we do not file ITR then is there any chance of IT-Dept coming to know abt this transaction which can under scrutiny
u/s143(3)?

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