I sold my property in april 2014 and deposited my money in capital gain tax account in dec 2014.
But still now i am not able to purchase any property
Am I liabe for capital gain tax
If yes is there any other way to save my tax.
4 Answers
Hi,
If you do not utilize the amount within three years of the sale of the first property, such un-utilized amount will be treated as LTCG.
In case the amount deposited is not utilised wholly or partly for the purchase or construction of the new property within the period specified, then the unutilised amount will be charged as income (LTCG) of the previous year in which the period of three years from the date of the transfer of the original property expires.
Till now i havent purchased any property
So i want to know am i liable for capital gain tax or i still have time till april 2017 to buy a property
Please reply soon i am in tension
Hi,
the Income Tax Act exempts the capital gains from the sale of a house if the taxpayer invests within two years (new house) from the date of sale or constructs another house within three years from the date of sale. If the entire capital gain is not used, proportionate deduction is available.
You may have to start the construction of a new property and get the construction completed by April 2017.
Thanks to giving information
I am still little confused
If a dealer is constructing a flat can i buy this flat and use the money for the construction to this flat
Hi,
Yes you can make partial withdrawals from CGAS account and the payments (Demand Draft) can be issued directly to the builder.
Thanks
According to ur advice i have selected a flat which is underconstruction and its possession is by march 2017.
Now i want to know the process to get my money withdrawal from the account so that i give it to the builder. To whom i have to approach.
Thanks
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