Combining CG for two financial years or open two CG accounts

Combining CG for two financial years or open two CG accounts

1. BBMP acquired my site and compensation was paid less TDS in April 2014. The amount received was deposited into SBM CGAS account in July 2015.
2. I sold unlisted shares and was paid in April 2015. Purchased REC bonds 50L. Balance amount is not yet deposited in CGAS.
Q1. Should I combine both capital gains?
Q2. Can I open TWO CGAS accounts for the two different capital gains.
Q3. I already own a house. I qualify for one more residence as per CG. However, since I have two CG instances, can I purchase two properties since its in two different FY?
Q4. Since my CGAS account opened in 2014. And I have additional money to deposit in 2015, will the time period extend from 3 to 4 years? If not, will opening a different CGAS account help? Is this the right approach?

Asked 8 years ago in Capital Gains Tax

First you can purchase only one house with one Capital gains . You cannot club 2 CG and invest in one property.

With regards to the capital gains from sale of shares, the tax implications would depend on the period of holding of shares from date of acquisition. The period of holding for unlisted shares to qualify as long-term asset has been increased from 12 months to 36 months.The LTCG could be claimed as exempt from tax by investing in prescribed investment avenues, i.e., residential apartment or specified bonds, subject to the fulfilment of conditions specified under the domestic tax law.

In the present case you can choose which CG you will invest in residential property or CG. As on one CG you shall pay tax.

Shyam Sunder Modani

CA, Hyderabad

1409 Answers

164 Consultations

Talk to Shyam Sunder Modani

Dear Sir,

1. You cannot combine 2 CG.

2. Opening 2 CGAS will not help you in your case.

3. You cannot purchase 2 properties, you can purchase 1 property out of any one of the Capital Gain, considering which one is making you pay higher tax.

4. No neither the time period will extend nor opening 2 account will help in your case.

Trust this clarifies your query.

Feel free to call back/ get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP.

Rohit R Sharma

CA, Mumbai

2104 Answers

95 Consultations

Talk to Rohit R Sharma

Sorry, more complication.
My CGAS was opened for the 1st amount received. This is a smaller amount and I can pay tax.
The second amount was larger and I want to purchase property with this money, and pay a part tax on the balance amount - about 60% property and 40% pay tax.
However, my time limit to deposit in a CGAS has arrived - July 31. The CGAS is for the first amount.
1. Do I deposit the second amount and increase the CGAS holding for property or do I need a fresh CGAS. If so, then I need to close the first CGAS account and open a new one soon.
2. OR can I simply deposit the 60% amount in the first CGAS account and pay the tax?

Asked 8 years ago

Dear Sir,

If you have not yet utilised the First CGAS then you can withdraw money from the same and pay the respective taxes. Post which you can open a new CGAS for the new Capital Gain and utilise the same.

All of this should be done before 31st July 2016.

Trust this clarifies your query.

Feel free to call back/ get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP.

Rohit R Sharma

CA, Mumbai

2104 Answers

95 Consultations

Talk to Rohit R Sharma

You need to have a separate CGAS.

Yes you need to close the first CGAS and pay tax on that. The second one can be utilised for investment.

Shyam Sunder Modani

CA, Hyderabad

1409 Answers

164 Consultations

Talk to Shyam Sunder Modani

I think the question has been answered by my other professional colleagues

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

I was surprised to find out that we are forced to pay 20% indexed value on Capital Gains on Unlisted Shares and the 10% non indexed option that shows up in ITR2 / 2A is not available.  Went to a lot of trouble to find this out.  Is there a way to pay the 10% non indexed value for FY2105-16 [AY2016-17]?  Would it help if I dont use Winman but use the XLS utility from incometaxefiling site along with the java utility.  Winman support was also not aware, but their software did not allow the non indexed calculation at all.  The tax difference is double for me and I wanted to take advantage of non-indexed calculation, as is allowed as per the IT act, I think.  Request clarification or suggestions.  Thanks.

Asked 8 years ago

Thanks anyway.  I discovered after a lot of searching that Capital Gains for unlisted shares is 20% indexed only.  No option for 10% non indexed available in current IT framework.

Asked 8 years ago

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