LTCG investment due date u/s 54F when no CGAS opted and 54EC

Tax queries 361 views 5 replies

Kushal Pande

CFO

256 Points Posted on 24 May 2017

Quoting from Section 54F:
The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place,

or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited ....... (in CGAS)

Scenario:
Long term capital asset (NOT house property) transferred on:
30/03/2017 (FY 16-17)

Questions:
[1] So, the time limit to invest the LTCG in house property u/s 54F without depositing in CGAS is?
Is it the return due date u/s 139 i.e., 31st July 2017 ?

[2] and, the time limit to invest the LTCG in 54EC bonds is?
Is it the return due date u/s 139 i.e., 31st July 2017 ?

[3] What does "date of furnishing the return of income under section 139" mean? due date?

Replies (5)

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 24 May 2017

1. Due date in case of Sec 54 F is one year before or 2 year after date of transfer if house property purchased i.e. b/w 01 Apr 2016 to 30 March 2019

Period of investment is 3 yr if house is constructed i.e. upto 30 March 2020.

2.Time limit to deposit in Bonds u/s 54_EC is 6 months from date of transfer i.e. upto 30 Sept 2017.

3.Date of furnishing return means actual date on which return filed.

Kushal Pande

CFO

256 Points Posted on 24 May 2017

Originally posted by : Rashmi Gandhi
	1. Due date in case of Sec 54 F is one year before or 2 year after date of transfer if house property purchased i.e. b/w 01 Apr 2016 to 30 March 2019 Period of investment is 3 yr if house is constructed i.e. upto 30 March 2020. Period of investment is 3 yr if house is constructed i.e. upto 30 March 2020.

But 2yrs / 3yrs are actually available only when the LTCG is put in CGAS.
If a person does not want to put the LTCG in CGAS, what is the time limit u/s 54F for investing in house property before the LTCG becomes taxable @ 20% ? Is it the return due date ?