Property sales proceed in fd?

Yes you can temporarily park your funds in FD's.  however eth inerest received on this would be taxable in your hands itself and not your wife's hand.

However if you are not able to invest the CG on or before the due date of filing your return, then you are mandatorily required to deposit them in the CGAS to claim exemption for that A.Y. else the whole of the Cg would become taxable.

so you cant park the funds in FD.

thanksgiri,

so how do  i show it in my tax return under which head..

also can u clarify further the deadline for parking in CGAS..will it be july 2014 or july 2015

the house was purchased by my father back in 1986, but the final documents were done in 1998

for indexation which is to be considered 86 or 98...purachse price 78000  sale price 25 lacs...so my tax payable will be how much

dheeraj

You have to invest the consideration in CGS before the due date of filling of your return of income. If you have sold it in June 2013 and you have not been able to purchase/construct a house property to avail exemption on capital gain then you have to invest the sale proceeds equivalent to the amount of capital gains computed in CGS on or before 31st July, 2014

Its not the sale proceeds that need to be invested, but it is the Capital Gains that needs to be invested in the CAGS fi claiming exemption u/s 54. So the amount to be invested shud be Sale consideration minus Indexed Cost of acquisition on or before 31st jul14 and exemption can be claimed for that eyar

this CG amount needs to be invested in a residential property within 2 years from the date of sale if it is to be purchased or within 3 eyars if invested in under construction property.  If the amounts still remains uninvested within the specified period then the uninvested amt will be taxable after the expiry of the said period of 2yrs or 3yrs as the case maybe.

If exemption is to be claimed u/s 54f then the net consideration need to be invested.

Cost of Year 1986, when the house was purchased by  your father, shall be the year of which cost will be considered for the purpose of computation of capital gain.

Moreover the indexation of the year 1986 is relevant value.

If these three conditions is fulfilled  in the year 1986, then 1986 shall be taken as the year:

Possesion is taken

Consideration is made

Right to enjoy property is gained

hi...

I completely agree with Mr. Giridhar view...