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Capital gains tax receipt

shaikh sajeed (Associate) (150 Points)

21 January 2020

what should be done from the amount received from the sale of property (land/building) less than 24 months?
For how much period should it be in the bank account before making any kind of investments?
Should the amount be taxed as normal or capital gains tax?

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6 Replies

ajeet singh (1392 Points)
Replied 21 January 2020

Before the end of fy in which amt received in separate capital gain account

1 Like

shaikh sajeed (Associate) (150 Points)
Replied 21 January 2020

Please reply completely

Avtar Singh (363 Points)
Replied 21 January 2020

Sale of property within
24 month is a short term gain and taxable as normally.

1 Like

ajeet singh (1392 Points)
Replied 21 January 2020

Yes its stcg no deduction is available

1 Like

shaikh sajeed (Associate) (150 Points)
Replied 22 January 2020

Thank you both of you

1 Like

CA Arun Tiwari (Partner) (4230 Points)
Replied 23 January 2020

Sec 54 Series of the Income Tax Act gives the benefit to the Taxpayer to exempt their income from the Capital Gain (here , Short term )

So if you have proceeded from the Short term capital gain (sale within 24 months from the date of purchase) then you can invest the same sale consideration amount in the required capital asset as required in the relevant section.