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Long term capital gain on sale of house

RAMA.S (FREELANCER-BOOK KEEPING & TAX CONSULTING/FILING) (23 Points)

04 July 2018

MY FATHER SOLD THE HOUSE IN FY 17-18 (BOUGHT BEFORE 25YRS) AND RE-INVESTED IN CONSTRUCTION A NEW HOUSE IN THE SAME YEAR FROM JAN 2018.. AND TILL DATE THE EXPS OF CONSTRUCTION R BEING GOING ON. ALSO HE DEPOSITED THE WHOLE OF SALE CONSIDERATION IN CGAS IN THE FY 17-18.AND AS ON 31ST MARCH 2018, THERE IS SOME BALANCE IN THE CGAS NOW, WHILE FILING ITR2, HOW TO SHOW THE EXPS INCURED FROM APRIL 2018 AND WHETHER THE 31ST MARCH 2018 BALANCE IN CGAS IS TO BE TAKEN TO CALCULATE LTCG.

PLS CLARIFY

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5 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 04 July 2018

you can utilise the amount deposited in capital gains account within 2 years of sale of property to avail the benefits under Sections 54, 54EC and 54F. If this is not done, the unutilised amount will be subject to capital gains tax in the fiscal in which the deadline ends.

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RAMA.S (FREELANCER-BOOK KEEPING & TAX CONSULTING/FILING) (23 Points)
Replied 04 July 2018

TNX for the clarification sir,

its clear that the amt in CGA totally exempted for 2 yrears, THEN, do i need to show the balance of around 9lacs (balance as on 31.3.18 in CGS) in the ITR 2,. if i show this amt, it is also getting autosumed as LTCG(IN total taxable income) along with the net LTCG ON IMMOVABLE PROPERTY OF RS.25LACS. SO THE TOTAL TAXABLE INCOME IS INCREASED BY 9 LACS.

KINDLY GUIDE.TNX