VERY URGENT Query on Capital Gain

Dear friends,

One Person sold his residential house property and there is LTCG on it around is Rs. 600,000/-. He invested entire sales proceeds in the new house property within 1 month of sale in Joint Ownership and the shares of each co-onwer is not definite (property cost Rs. 25,00,000/-). and also got the possession of the property within 2 years from the date of trf. Now my question is whether his required to file the return of his income in order to claim the exemption U/S 54 or there is no compulsion to file the return.

Replies (9)

RETURN MUST BE FILE  TO CLAIM THE EXEMPTION U/S 54F SINCE HIS INCOME EXCEEDS EXEMPTION LIMIT......

Though belated return can be filed for claiming deduction u/s 54 return should be filed as it is advisable.

as per my knowledge whenever an deed is executed there should me clearly mentioned abt the share of property in case of joint ownership or u can chk from the payment made by u r client from that 2500000/-

Hi,

In my opinion, no need to file the tax return.

 

What aditya sir has said is correct, it is a decided case that sec 54 does not say under which subsection the return should be filed, so assessee wil be given the benefit if return filed belatedly u/s 139(4)  and investment in capital gains account scheme is made by the time limt specified in 139(4).... (Which appears controversial)

Nipun Mehrotra vs ACIT,Cir (12), 110 ITD 520 [2008]

CIT vs Rajesh Kumar Jalan [2006] 286 ITR 274

 

Joint ownership is also recognised for exemption u/s 54...

However, ur question seems to pertain to "whether a return of income is to be filed at all?"

My answer is No, because the Gross total income after claiming exemption u.s 54 does not exceed basic exemption limit.....

there is no GTI above the limit specifed in sec 139(1)....

 

But like aditya sir said, it is advisable....

no need to file itr

Filing return is Advisable

filling of return is advisable.

HI SANDESH,

 

SINCE THE GROSS TOTAL INCOME AFTER GIVING EFFECT TO PROVISION OF SEC 54 IS LESS THAN EXEMPTION LIMIT, U ARE NOT REQUIRED TO FILE RETURN.

 

BUT IT IS ADVISABLE TO FILE RETURN TO AVOID UNNECCESSARY HARRASEMENT FROM INCOME TAX OFFICE.

 

REGARDS,

 

MANOJ

no need to file itr

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