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Time limit to pay capital gains tax

2053 views 5 replies

Milind M. Kulkarni

Practicing CA

597 Points Posted on 12 September 2019

A person wants to pay capital gains tax on long term residential house sold by him and does not want to avail any exemption by investing in any further asset. The only problem is that he has to pay certain charges against challan to the collector office as land on which the building is constructed belongs to state government. Further, it will take at least 2-3 months to know exactly how much amount he has to pay under receipt to the collector office. These charges are deductible from Full Value of Consideration as expenses in relation to transfer of asset.

Please inform within how much time after the date of sale, he has to pay capital gains tax to avoid/ minimise interest on it. Thanks in advance.

Replies (5)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 12 September 2019

It needs to be paid on or before the due date of filing the return

Kapadia Pravin

17264 Points Posted on 12 September 2019

Right now you calculate estimated capital gain amount which will be taxed @ 20.80%

You pay Dec instalment ( on or before 15th Dec) to the of 75% of total estimated tax and balance
25% in Mar instalment on or before 15th Match

sabyasachi mukherjee

Profession Business

28244 Points Posted on 14 September 2019

MILIND IF ITS LONG TERM YOU CAN CLAIM EXEMPTION U/SEC 54F ,SEC 54EC .

Suresh Thiyagarajan

Student

3986 Points Posted on 14 September 2019

1. In order to avoid any interest u/s 234B and sec 234C, an estimated amount of capital gains should be determined and tax should be paid on the same, on or before 15th of march of the relevant FY. It is difficult to determine the exact amount of capital gains so tax must be paid on remaining installments for which no interest will be charged.
2. The tax rate will be 20.6% on the Capital Gains and this tax will need to be estimated and paid as a part of advance tax.
Please correct me if the above solution has an alternative view.