Capital gains income - initmation us 143(1)

ITR Filing 851 views 2 replies

LS

Others

28 Points Posted on 11 May 2014

Hello Experts,

I received a demand notice yesterday from the It dept.Last year i sold my old house and bought a new resendital property using the proceeds. I used ITR2 and put in this information and also claimed excemption of capital gains under Sec 54.The demand notice still shows the capital gain amount under 'Heads of Income'. In one the annexures the excemption is also shown and total long term capital gain is shown as zero but the net payable shows the tax on capital gain and the intrest amount. Please suggest

[UPDATE 12 may 2014] - I was going through my ITR 2 when i realised that the software which generated my ITR2 had mentioned both my house names (old , sold off and new one) under 'Income from House property' and my new property was marked as 'Let out' . Is this the reason that the IT department thinks that I have more than 1 residential property and therefore cannot claim capital gain exception under sec 54. In my case do i need to mention anything under ' Income from House property'. ?

Replies (2)

Mihir

Wealth Manager

5293 Points Posted on 11 May 2014

You may file rectification u/s 154. If you have all the documentary proof of using the sale proceeds fulfilling the conditions, then you will be allowed the exemption.

R.Thangamani

owner

37 Points Posted on 11 May 2014

An urbaan Agricultural land was compulsorily acquired by the National Highways Authority of India and the compensation received from the National Highways amounting to Rs.20 Twenty Lakhs is exempt from incometax under section 10(37) of I T Act.In the I T return where should this income be shown, i.e under which head whether under Exempted income or capital gains column. Kindly help me to file the return