When is the Capital Gain taxable for me

Dear sir/Madam.........

You have sold the flat in Dec 2009, the CG arises in A.Y. 2010-11......

but there are some exemptions available only for Long Term Capital Assets.........

54 - Transfer of Res. House and Pur/ const of Res. house.... - For this you have to invest the CG in pur/const. of Res. house before the due date of filing the return or you can invest the CG in CG account scheme before the due date.... The amount should be utilised for purchase of Res. hosue within 2 years and for construction 3yrs......

54EC -  Transfer of LTCA and investment made in Specified bonds....i.e. REC/NHAI bonds........within six months from the date of transfer........There is a lock in period of 3 years......It means the Specified bonds should not be transfered / mortgaged before 3 years....

Dear sir,

As far  as investment in property is concerned in case of long term capiatl gain there are two options available with you

i) either purchase the new house property before the due date of filing the return, which in your case is 31st july, 2010.

or

ii ) Deposit the amount in Capital gain Account scheme with any public sector bank other than the rural branch before the due date of filing the return of income.

By excercising any of the above options you will  not be chargeable to capial gain tax. however in case you opt for the second options then the new house property should be purchased within the specified period ,which is as follows

i) in case of purchase - within two years from the date of transfer

ii) in case of transfer - within 3 years from the date of transfer new house should get completed.

If the amount invested in capiatal gain account is not utilised withnin this perid , it will be chargeable to tax after the end of 3 years.

For investment in specified BOnd u/s 54EC :

Investment should be made within a period of 6 months from the date of transfer upto Rs.50lacs.

If neither of the conditions of sec 54 & sec 54E are complied then capital gain will be chargeable to tax In the Ay 2010-11 @ 20%.

In case if it is chargeable to tax then you are not required to make investment in specified bond or under the capital gain account.

hi

agree with Ca Nilesh

karthi