Hello,
Please clarify whether I can keep the sale proceeds of house property in savings account for 3 to 6 months before transferring to capital gain scheme account.
whether all the legal heirs can treat their proceeds as they want i.e some wants to keep in capital gain scheme account and some wants to pay tax and keep in savings account.
How the taxability would come in that case.
regards
Swetapadma mohanty
Hai.,
You can hold the money in SB A/c for a period of 3 or 6 months or even more... but it depends on the period in which yu sell the property..
The law provides that if the sale proceeds are not utilised for within the due date u/s 139(1) ., it should be kept in a capital gain account scheme within the time limit u/s 139(1)...
In your case if yu have soldl the property on 30.09.2009, yu can even keep it for 10 months or 12 months i.e. upto the due date for filing your return...
In case yu sold it on march yu may have time only upto july or sep end...
However, if the amount kept in the scheme is not utilised within the prescribed period it will be treated as Long term capital gain in the year in which the prescribed period expires...
If one wants to pay tax, he is of liberty to use the balance moeny at his will...
however, if one wants to keep it in an SB account,, the above said provisions will apply..
CAclubindia
