M K R PILLAI (Retd.Pvt.Employee) 09 February 2012

Capital gain-tax saving by govt.bond

I am writing this for my friend. They purchased a Flat in Thane Dist(Maharashtra) in financial year 2000-2001 at value Rs.370000/- jointly in the nane of son and father. They incurred Rs.300000/- for modification cost for the Flat in financial year 2001-2002. The flat was sold in financial year 2010-2011 at Rs.14/- lacs. Part payment received in financial year 2010-2011 and balance received in financial year 2011-2012.What would be the gain and tax payable. How to save tax by depositing fund in govt.bond. Kindly help me so that the Govt. bond can be purchased in financial year 2011-2012 itself before 31/March. Thanks, mkrpillai.

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4 Replies

A V Vishal (Advocate) 09 February 2012

The flat was sold in financial ...............do you mean that sale was registered or advance received, further was possession delivered before full payment coming or later.

M K R PILLAI (Retd.Pvt.Employee) 10 February 2012

The sale was registered on 31/March/2011. Part bpayment advance Rs.2/- lacs received in Feb/2011. Kindly reply further.

Vineet (Director) 11 February 2012

As the sale was registered in FY 2010-11 that means the long term capital gains (approx Rs 2.26 Lacs) taxable in AY 2011-12.

The capital gains tax cannot be saved now by investing in capital gains saving bonds. As a matter of fact, the tax cannot be saved in any manner now as the investment in such bonds should have been made within six months of registration. Even investment in new house also will not help as the sum should have been deposited in capital gains account before due date of filing of return for AY 2011-12 i.e. 31-7-2011.