Capital Gain from property

One of my client has sold his land on 06.08.2007 and he had get Rs.500000 as capital gain. he has made a capital gain FD on 04.07.2008 which matured on 04.07.2011. the time barred period for purchase of flat/building is 2 year and construction of any property is 3 years. He did not purchase any flat and not invested in construcion. So what will do after receiving the maturity amount of FDR bcoz the same will be taxable. so please give us any solution for saving the tax.

Replies (8)

I dont think there is any other way out

You will have to pay taxes.. no tax saving can be done now..

Originally posted by : Nitu Agarwal

You will have to pay taxes.. no tax saving can be done now..

yo have to pay tax

Dear Mr.Rakesh, No any other way to save tax on that capital gain. This Capital Gain taxable in AY 2011-12

Explain him wat mistake he made and tell him accordingly he needs to pay tax.

Dear Mr.Tushar,

You say "what mistake he made?"

Ans. Assesse required to invest Capital Gain Amount in New Assets within time limit as prescribed in section 54 and if assesse not invest within time limit then gain amount will be taxable.

 In the above case assesse not invest gain amount within time limit i.e. 3 years so he is not eligible for claiming exemption but prior year he claim exemption that'swhy amount will be taxable in the year in which 3year complete.

Amount of gain which is not utilise for New Residential House purpose will be taxable in the year in which 3 Year complete

I agree sir wit u

my point was to explain this mistake wat his client made and tell him to pay taxes as there is no solution to save  from it .

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