I sold my house in August 2019. I have not invested the money up till now. What is the last date to open capital gains account. Can I invest full sale value in capital gains account if I am unable to get valuation from value r.
Hi
The amount should be deposited in capital gain account scheme before due date of filing of Income tax return. 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.
Now due to this lockdown for this year it is 30 November you can should deposit it till the same
Can I deposit the whole amount of sale
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.
Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year.
Due to covid & lockdown, the deadline for filing income tax returns (ITRs) for financial year 2019-20 is November 30.
Therefore, the return of income earned between April 1, 2019 and March 31 2020 which was due by July 31 can now be filed by November 30.
Please note that in order to claim exemption, you need to invest the capital gain amount if a house property is sold. However, in case of sale of a land, entire sales consideration needs to be invested.
Time limit to open capital gain account scheme is 6 months from date of sale. That time has lapsed now. This will be taxable capital gain now.
Hi
If you are planning to reinvest into a residential house property to claim capital gain exemption, you can deposit the capital gain amount in CGDS account before filing ITR or 30th Nov 20, whichever is earlier.
Since you have sold a residential house property, you are required to deposit only the capital gain amount.
Hello,
The last date to deposit the amount in the capital gain account is the date of filing the ITR or 30th Nov 20, whichever is earlier.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You are required to deposit only the due capital gain amount in the capital gain account.
Hi
Yes you can do so.
- Due date to file ITR is 30.11.2020. Open account before the due date as it will take time for the formalities.
- Deposit only capital gain amount.
Last date would be 30.11.2020.
It better not to do that because it is very difficult at prove everything when you close the account.
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