Hello All:
One of my relatives had sold his house this February and is looking for a new house to purchase. My question here is, as the profit from capital gain is around 30L and it will take another 6 months or a year for him to purchase a house, how can he show this income in ITR for AY 18-19 and avoid paying tax? Please note that I have been told that we have been at least 2 years to purchase house from the date of sale made.
looking forward to your advice.
Thanks in advance.
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Capital Gain
Replies (4)
deposit the tax in a capital gain account and withdraw it closing the account while purchasing the house property...
PS: assessee should not hold more than 1 house property at the time of sale...
PS: assessee should not hold more than 1 house property at the time of sale...
Since you have 2 years to purchase for new house beginning from date of sale, in this case following are things you have to do
You will have to deposit the amount of 30L with bank by opening a Capital Gain account with Bank or make an Capital Gain FD with bank. This you will have to do before filing your IT Returns.
As an when you will have to make payment for purchase of new flat, you will have to make application to concerned AO and withdraw money from Capital Gain account.
I should have been a bit more elaborate 😅😅😅
Thanks so much Ashwin and Sahil for your advice
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