Treatment of Capital Gain in Tax Return Filing

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Dear Sirs,

                   plz guide me in this matter

                  Suppose  an assessee sells his house for Rs.10,00,000 in F.Y.2010-11 (say Mar,2010)

                  Now if he plans to invest the entire proceeds of Rs.10,00,000 in buying another House Property in the F.Y.2012-13 (say Jan,2012) 

                 then what treatment shall be adopted by him in respect of FILING HIS INCOME TAX RETURN FOR A.Y.2011-12

(with respect to the proceeds of Sale of House Property ,i.e. should he pay tax on the Capital Gain on sale of House Property in the current year since he has invested the proceeds in F.Y.2012-13)

Replies (2)
Originally posted by : Ashok


Dear Sirs,

                   plz guide me in this matter

                  Suppose  an assessee sells his house for Rs.10,00,000 in F.Y.2010-11 (say Mar,2010)
- FY 2010-11 starts with april 2010


                  Now if he plans to invest the entire proceeds of Rs.10,00,000 in buying another House Property in the F.Y.2012-13 (say Jan,2012) 

- you have to invest the amount within ONR YEAR or before filing of return. 

- in case u feel delay then get the amount deposited in cap gain account scheme with any scheduled bank.


                 then what treatment shall be adopted by him in respect of FILING HIS INCOME TAX RETURN FOR A.Y.2011-12

(with respect to the proceeds of Sale of House Property ,i.e. should he pay tax on the Capital Gain on sale of House Property in the current year since he has invested the proceeds in F.Y.2012-13)

To get the exemption from capital gain tax you shall deposit the CAPITAL GAINS to capital gain a/c scheme in a bank BEFORE DUE DATE OF FILLING OF RETURN US 139(1).........


and later on you can apply this money in purchasing or construction of another house property....

(Note:- if you are unable to utilize the amount with in lock in period of 3 years then the amount u have claimed exempted will be made taxable)

 

Regards

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