Refund of tax paid earlier

677 views 2 replies

Sir/Madam,

  After deducting indexed cost of acquisition from the sale price of property - residential house my long term capital gains comes to 1 crore. Again after deducting 50 lakhs for 54EC bonds, my net LTCG comes to Rs. 50 lakhs, on which I have paid a tax of Rs. 10 lakhs. Now if I purchase property for a new residential house in 2 years or build one in 3 years, and utilize the remaining capital gains proportionately as set off, can I claim a refund of Rs. 10 lakhs, if I file a belated return, revised return or an updated return or condonation of delay request, can I claim refund of the Rs. 10 lakhs that I have already paid. What would be the best approach if it is possible to claim the said refund of Rs. 10 lakhs.

 

Replies (2)
Quick Summary
This discussion explores claiming a refund for tax paid on long-term capital gains (LTCG) after reinvesting in a new residential property or 54EC bonds. The user paid Rs. 10 lakhs tax on Rs. 50 lakhs net LTCG after deductions and wants to know if they can claim a refund by filing a belated, revised, or updated return if they reinvest within the stipulated time. The advice suggests reinvesting the remaining capital gain in a new property within the prescribed time and claiming exemption under Section 54 in a revised/updated return to get a refund on the exempted portion.

When you reinvest the remaining capital gain in a new residential houe within the stipulated time (purchase in 2 years or construction in 3 years), you can claim exemption under Section 54of the income tax act for the proportionate amount reinvested. 

File an updated return (under Section 139 (8A) of the income tax act, if eligible. 

You cannot claim a refund simply by a condonation of delay rquest for the tax already paid without adjusting the capital gain exemption. 

The best approach is to : 

Reinvest the remaining capital gain in a new residential property within the prescribed time. 

Claim exemption under Section 54for the  invested amount in your revised/updated return. 

The tax paid on the exempted portion will be eligible for refund after the exemption is allowed. 

Thanks for your information.

1.Suppose I sell my immovable property towards March end of the Financial Year and I have to move to another city, it will take time for me to transfer the bank accounts to the new city. In this case, for 54 EC bonds, can I apply within 6 months of the date of sale but before filing the returns and claim exemption for the same. 

2. Can I put the unutilized taxable amount of Capital Gains in Capital Gains Accounts Scheme and then from this put the amount in 54EC bonds if the date of filing of ITR is over and then file an belated return?

3. Do I have to take the signature of the AO before closing the CGAS account and how to find my AO (is it of the city where the old asset was sold or of the new place that I migrate to)?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT , CA SemiQualifie

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details