A client has sold property 2 years back and purchased another property. till now income tax returns are not filed. So can my client take exemption u/s.54 for purchasing house property by sale of another house property and also a car ?
Regards,
JK
CA JK (Student) (187 Points)
13 June 2013A client has sold property 2 years back and purchased another property. till now income tax returns are not filed. So can my client take exemption u/s.54 for purchasing house property by sale of another house property and also a car ?
Regards,
JK
Devendra
(Chartered Accountant)
(4775 Points)
Replied 13 June 2013
Yes. He can take the exemption of section 54 on capital gains arising on sale of house property by purchasing another house property.
Whereas gain / loss on sale of car will not be considered for the above exemption.
Regards,
Devendra Kulkarni
Sunshine
(Helping All)
(10575 Points)
Replied 13 June 2013
Sir,
1st thing... If the belated return was not filed till 1 year after the end of relevant A.Y ... the assessee can no longer file the return...
Secondly,... if the assessee has not purchased another house withing the due date of filing return, he has to deposit the amount of capital gain in a separate capital gain bank a/c maintained for this purpose to avail benefit of sec 54 .... In case he has not fulfilled the requirement , he can no longer avail such benefit..
3rdly.. no benefit on purchase of car....
manoj
(student)
(5205 Points)
Replied 13 June 2013
CAR IS PERSONAL ASSET SO IT NOT COME IN CAPITAL GAIN
RETURN FILLING IS NOT MANDATORY BUT UPTO DUE DATE OF FILLING OF RETURN INVESTMENT IS MANDATORY
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