Dear Sir,
I sold my 10 year old house in March, 2012 and used this amount for some urgent requirements. I have not paid Longterm Capital Gain Tax till now.
Is that I can this tax now with interest.
Is there any issues from the department for late payment tax
I am planning to buy new house in early next year, In this case, am I exempted from tax or I have to pay the tax.
Thanks & Regards,
Uday
As you had sodl the house in March12 then the Capital Gains arising from the same of house should have been invested in another house on or before the due date of filing the return. If they could not be appropriated then the sale proceeds are requried to be deposited in the Capital Gains Accounts scheme on or before the due date of filing the return & exemption can be claiemd for that year. Then the amounts from the deposit scheme shall be withdrawn when you purchase the house. this shall be done withing 2 eyars from the date of transfer i.e. on or before Feb14.
Since you ahve used the Capital gains other than the purpose mentioend under section 54, so you are liable to pay Capital Gains Tax @ 20% You will also be requried to pay interest.
For the new house that you are planning to buy you will not able to claim any tax exemption on this new house.
Sir,
Calculation of long term capital gain:
sale value-expenses-cost of indexation
(cost of indexation includes purchase price, registration expenses)
so in your case you can cosider only cost of indexation and the sale amount should have been invested on or before the due date of filing return.
| Originally posted by : Giridhar S Karandikar | ||
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Thanks a lot. For the new house that you are planning to buy you will not able to claim any tax exemption on this new house. What is the % of interest, I have to pay. Secondly, department will any issues like penalty etc. after payment of tax with interest. |
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CAclubindia
