LTCG is negative as I calculate

Hi,

Hope you are doing well !!

- Yes, you can deposit it in saving account or FD, whatever is convenient for you.

-The last date of filing ITR is for the financial year in which capital gain arises. Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year. Under extraordinary circumstances, it can be extended by the Finance Ministry.

In your case, it would be 31st July 2020 i.e. AY 2020-21.

- Once you have figured out what your capital gains or losses are, the next step is to include them in your ITR form. There are different ITR forms based on the type and amount of income.

“Individuals with income from salary and capital gains are required to fill ITR-2.

We may assist you in ITR filing.

Dear sir,

You suffered long term capital loss of Rs 23 lakhs.

There is no need to deposit any amount in capital gain account scheme, since there is no capital gain. 

You can carry forword above loss for further 4 years.

Your transfere is in fy 2019-2020. So file your return before due date ( 31st july 2020). And claim long term capital loss.

There is no tax liability in this case.

As per your calculation your understanding is correct, but you also need to consider the DLC rate i.e. the rate of that property as per stamp duty authority.

There is never anything as negative tax.

Also since you are having a loss you will claim refund of TDS deducted.

You don't need to deposit any amount you can use it as you want.

Your return would depend on what other income you have earned during the year. Most probably it will be ITR 2 or 3.

I didn't get your last question.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi Bijay

Since there are no capital gains, you don't need to pay any taxes nor deposit any money in CGDS account.

It is a capital loss which needs to be reported in ITR and shall be carried forward for set off of any future capital gains.

You may utilise the funds anywhere.

You need to file ITR 2.

Hi,

- In your case, it is a long term capital loss of Rs. 23 lacs which can be set-off against only long term capital and can be carried forward for next 8 assessment years for set off.

- You need not deposit the amount in any account. You are free to use your money.

- ITR-2 will be filed. Schedule CG will be filled.

- Yes, you should be filing the transaction in next year's ITR i.e. A.Y. 2020-21.

- Collect Form 16B form the purchaser. Also check Form 26AS for the TDS and sale amount.

- Retain all documents for future reference.

- Take the help of CA while filing the ITR to avoid any error/mistake.

Thanks

Hello,

Yes, since you have long term capital loss, you are not required to pay any tax.

You are not required to deposit it in any specific CGAS account. You are free to use this money, deposit it anywhere you want.

ITR-2 would be filed. Capital loss would be reported and can be carried forward for set off in future years against long term capital gain.

Yes, you would be filing this in next year's return, i.e. F.Y. 2019-20 A.Y. 2020-21.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani