long term capital

Dear Sir,

would like to know something about long term capital gain from sale of a Residential plot on 12/01/2011, the capital gain is rs.137400.00. I file my returns mostly on 31/03 for the AY. This time to I want to file my returns by 31/03 only. i just want to know that till date i have not invested any amount of capital gain. is it possible by any means to invest the capital gain amount and avoid 20% tax.

asked Feb 09 '12 at 15:43 by Yati Sheth 111

You have to invest your Capital Gains within 3 years from the date of sale of the Asset.

However, you cannot use this amount for your personal benefit and you have to deposit this in a Capital Gains Account with the Govt and Interest would be payable on this amount.

If you have deposited this amount with the Govt before the due date of fiing of return - you can make use of this exemption, else not..

answered Feb 10 '12 at 19:20 by CA Karan Batra 53216


In case you wanted to take tax benefit u/s 54F and did not purchase any property or capital gain bonds before last date of filing, you need to have deposited whole sale consideration amount into capital gain account scheme before 31st July, 2011.

Since you have not done that, now you would need to pay 20% income tax on capital gains (computed with indexation benefit). There also be interest penalty payable for late tax payment.

answered Feb 10 '12 at 19:41 by Pankaj Batra 5.2k320


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Asked: Feb 09 '12 at 15:43

Seen: 2,084 times

Last updated: Feb 10 '12 at 19:41