Capital gains

Hello,

X sells a residential property and deposits the capital gains in the CG A/c with the notified bank.

I understand that X gets 2/3 years for utilizing the amount for the pupose of construction or acquisition of a new property as the case may be.

If the person fails to obtain the property the person has to pay tax in the year the time limit is over.

Will X have to pay any penal interest for delaying the tax liability.

Regards

 

Replies (3)
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Yes Sir,

should we also pay any interest

Praveen ji,

 

The exempted CG will be taxable in the previous year in which the period expires. There is as such no provision for interest in which the period expires.

 

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