Capital gain tax


DEAR SIRS, I want to clear my case here: My uncle sold N.A land of Rs.6 crores as on 27 june,2011.He had neither paid capital gain tax nor filed income tax return u/s139 within due date. He also failed to re- invest money in residential property.and not deposited money in capital Gain account scheme. Now IT department have sent notice u/s 133(6) requiring to produce the information. The only way to claim exemption U/s 54F is that he must purchase plot of land and construct a house within 4 months( i.e. 3 years from the date of transfer of property) LAST DATE 27/06/2014. So as per law the taxpayer shall made deposit before furnishing the return of income or due date of furnishing the return of income u/s139(1) i.e. 31 july,2012 whichever is earlier. I am still confused.

IS IT MANDATORY TO DEPOSIT MONEY IN CGAS SCHEME?

CAN MY UNCLE CLAIM EXEMPTION U/S54 F DURING REMAINING PERIOD OF 4 MONTHS EVENTHOUGH HE FAILS TO PARK MONEY IN CGAS? 

 

 
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Director

There is no way tax can be saved now. To avail section 54F benefit, the entire consideration was to be deposited in Capital Gains Account before 31-7-2012.

So now only option is to pay capital gains tax with interest. Still there is time, please get belated return filed and avoid penalty for concealment. Nominal penalty u/s 271F of Rs 5000/-.


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Mr. vineet 

Thanks again for your kind interaction with this case.

I have also advised my uncle and others for payment of tax and interest but they are uneducated. They are not ready to pay this much amount. I have also warned them for the consequences they might face nearby future.

I have opened this forum bcoz of following:

There are judgments wherein similar questions were observed by Hon’ble Gauhati High Court

(in CIT v. Rajesh Kumar Jalan (2006)) and ITAT Bangalore (in Shri Nipun Mehrotra v. ACIT

(2008)), favored the assessee and allowed the exemption wherein the amount was not

deposited in capital gain account within the prescribed time limit. However, in similar

situation, Hon’ble ITAT Delhi (in Taran Birsingh Sahni (2006)) took the contrarily view and

disallowed the claim of the assessee.

 
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