Long term capital gain on house property

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My Brother sold a house on 21st Jan-2014, His CA calculated an amount Rs 16 Lakh 54 Thousand being the capital gain and asked him to deposit into the saving account. This amount is in the Capital Gain saving account. (Not in the Bonds) Now the three years period is going to finished on 21st jan-2017 and unfortunately he was not able to purchase suitable home. This capital gain account accumulated 4% interest and He paid the 10% TDS on interest earned in this account in his yearly IT return. Can he use the same capital account saving money to purchase the house beyond the 3 years passed (form C) and without paying the 20% capital gain tax? He does not want to close the account. Or Income tax office can provide 6 months time with some penalty and no capital gain tax to buy the house. or If at all tax is needed to pay, can he use the Interest accumulated in the capital gain saving account and balance he can pay the tax. Or 20% tax calculation will be based on entire 16.5 Lakhs + Taxes and when he could apply for this procedure .
Replies (2)
No, according to me assessee should invest money in three years

Hi,

The benefit is available to an individual and huf

If you are planning to build a new house, the constuction has to be completed within 3 years from the sale of property

Buying an under construction property is alos eligible for tax deduction provided the construction is completed within 3 years

so in your case if you can not construct a house you have to pay the capital gain on 16.50 lacs


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