Deposit of money received on sale of property.

Tax queries 246 views 2 replies

MOHANAN .V.P.

INSURANCE AGENT & ACCOUNTANT-PART TI

51 Points Joined February 2012

Hello.

1)I sold my residential land in kerala on 11.12.2015 for Rs.6 lakh as per registered sale Deed and out of this I purchased a land in Bangalore for Rs.257000+17450 Registration charges on 13.1.2016.The balance amount is lying in SB Account.

2) Further, I sold my flat in Bangalore on 19th February2016 for Rs,12,00,000 /- as per Sale Deed which is also lying in SB account.

I am planning to construct a house in the above land and the work will start shortly. If I spent the remaining amount of the first part on construction before 11th May,2016 can I keep the amount in SB account till such time

I will be using the 2nd sale amount also for the construction of the house- shall I keep the said amount in SB account till Aug,2016.

Is there anything to be done before 31st March,2016 !

Kindly advise.

Regards

Mohanan.V.P.

Replies (2)

MOHANAN .V.P.

INSURANCE AGENT & ACCOUNTANT-PART TI

51 Points Joined February 2012

Hi,

I request someone to advise me on this.

regards

Mohanan

Deepak Kumar

Chartered Accoountant

270 Points Joined July 2009

First of all i assume that both Residential house are long term capital assets(ie u have purchassed it before 3 year of your sales date). Now for Calaiming Deudition U/S 54 the Condition are as under

1 Assesse Should Be individual/ HUF

2 He Transferred Long term capital Assets which is Residential House

Now Assesse can Purchase a new residential house one year before or two years after the date on which the transfer took place or he has constructed within a period of three years after that date of transferred.

The amount of the capital gain which is not utilized by the assessee towards the purchase of the new asset , or which is not utilised by him for construction of the new asset before the date of furnishing the return of income under Section 139 ( In your case 31 July 2016), shall be deposited by him before furnishing such return in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette,

Ttarget='_blank' rel='nofollow' hrefore in your cases either u should investe whole of your capital gain from both of property for thre purpose of consturcion, or capital gain can not be utilized before 31 july 2016 it should be deposited in bank in a special capital gain account.