Window for investment in housing property to save capital gains tax

385 views 9 replies

I co-founded a private limited company in  IT sector in India and sold my shares to a foreign company. I am resident Indian.

I received the proceeds in my bank in Jan 18 and set aside some money for buying a housing property (I have one property already). I placed it under relevant FD in June 18. I paid advance tax on 15th March 18, showing this inward remittance. The actual share transfer took more time, due to the procedures involved.

I have now finalized a house, which is ready for possession and occupancy certificate received. Still in negotiations stage. No deposit made etc.

But, I have crossed Jan 20, 2 year period.

The FCTRS for inward remittance was received in Sept 18 and Board approved share purchase from me in Sept 18.

 

My question is, can I still buy a house with OC received and avail tax benefit? Have I crossed 2 year window to buy a readymade house? Can I get an extension and if so how to approach the issue with authorities?

 

But 

 

 

Replies (9)
You already paid advance tax ? for what ?

Towards Capital gains, I laid advance tax on 15th March 2018.

If you already paid tax then why do you want to invest.

I think I did not make myself clear. Imagine I received Rs 1000 as proceeds for sale of shares in Jan 18. I showed Rs 100 as planned investment in housing and placed this amount in Capital gains FD in June 18. On balance 900, I paid advance tax on 15th March and of course filed my return by end July.

Now this Rs 100 which I set aside needs to be invested in property. Question is for this only

According to law you should invest in 2 yrs so by that time lapsed and need to pay tax on that...but general main toh idhar udhar chalta Hain ...invest it within reasonable time.

I wish department were as understanding and reasonable. My question is 'from.which date will the 2 year count down start, as per law'

2 yrs after the date of transfer.

as per law the count down starts after the date of transfer

Although the period of 2 years starts from the date of transfer but in your case you need to check what is the actual date of transfer of shares..Mere receipt of consideration for shares would not amount to transfer of shares. Transfer of shares is complete only when the share certificates are actually handed to the buyer.

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