Capital gain tax to be file by July or Nov 2020 now

Hi

The new due date of return filing for FY 19-20 is 30 Nov 20. In case investment is not made upto date of return filing or due date of return filing, whichever is earlier, the amount shall have to be deposited in CGDS. 

If the investment is not done till Nov 20 and also amount is not deposited in CGDS, tax shall have to be paid in Nov 20 while filing the returns.

Please note that if taxes are paid at the time of return filing, interest shall be applicable for non payment of advance taxes.

We may discuss the issues further. 

- You don't have to open Capital gain account till 30.11.2020 if you file the ITR on 30.11.2020. Opening of capital gain account and withdrawal of amount is a cumbersome process involving approval from jurisdictional AO. 

Yes capital gain and income tax both go hand in hand and therefore now you can deposit the amount till 30.11.20.

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

Thank you

As per provision of income tax act, the amount should be deposited within the due date of filling of return.  Since return filling due date has been extended you can deposit the CG amount within such extended date without losing the exemption. 

Hello,

Yes, now since the due date of filing ITR for F.Y. 2019-20 has been extended to 30th Nov. 2020, you can deposit the amount in CGAS Account up to the date of filing of return or the due date, whichever is earlier. In case you don't deposit the amount or invest it for the deduction, you will have to pay the due capital gain tax with the filing of return.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

If you do not get a chance to invest in a profitable property immediately and still want to save your long-term gains from being taxed, you can invest your capital gains in CGDAS by approaching any public sector bank. The timeframe for the purchase or construction of the property remains unchanged in this case as well. But you can utilise this account momentarily so that you save your gains from being taxed and have more time to finalise a property for reinvestment.

It is required to deposit such unutilised capital gain in the capital gains account before furnishing return of income but not beyond due date for furnishing return of income.

Since the due date of ITR filing has been extended to 30th Nov 2020 you can deposit the same within extended period. 

You will have to park the amount in capital gain account scheme before Nov 30 if you do not purchase any other property by that time. If you do not park it in capital gain will become taxable. This amount is to be utilised in purchase of new house within 2 years from transfer of original house or another house should be constructed within 3 years from the date of sale.

The amount to be utilised for purchasing another property should be deposited in capital gains account scheme before the due date of filing the return. 

Tax return is one return for all types of income earned during the financial year by a person. Capital gains is one source of income which also needs to be reported in the tax return due to be filed by November. 

This year since the due date for filing the Return of income is 30th November, you have time to buy another property by November.  In case, you are not able to buy before the due date, do invest in capital gains before 30th November