Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Amount not deposited in cgas before due date-exemption ??

Tax queries 637 views 3 replies

CA Abhishek Singh

practice

2112 Points Posted on 01 August 2013

Hello everyone

one of my client has sold a house property in aug 2012 for rs.28 lacs

he had purchased the house in 2007-2008 for rs.1200000.

he took 800000 loan from bank for the same.

Out of 28 lacs he reapid the o/s. loan from bank Rs.600000/- and Rs.12 lacs for marriage of his sister.

He has not deposited any amount under capital gain ac scheme till the due date.

he is planning to buy the house by taking loan in sep/october 13 and will file the return after buying the house.

MY question :

1. will capital gain be exempted since he has not deposited the capital gain in the CGAS on/before the due date ?

2. Will capital gain be exempt if loan is taken by sister(married) and he is the joint owner ?

waiting for the views of the experts.

Replies (3)

Mihir

Wealth Manager

5293 Points Posted on 01 August 2013

Sale consideration: 28,00,000/-

Less index cost of acquisition: 852/551 x 12,00,000 = 18,55,535/-

Long term capital gain: 944,465/-

LTCG Tax: 192,293/-

You will need to deposit 944,000/- in capital gain account before filing IT return and invest in bonds within 6 months and/or invest in another property within 2 years.

CA Abhishek Singh

practice

2112 Points Posted on 01 August 2013

Thanks for your reply. But plz clarify whether amount should be deposited on/bfore due date i. 5th august 2013 or before the filing of return ? i mean return can be filed after the due date also,