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Capital gains deposit scheme
Direct Taxation
What is the time limit for a deposit, is it the due date of return of income or the date of return filing, and in which year, in the year of transfer or within the period of reinvestment allowed
Answers (11)
Best Answer
Due date of return of income for the AY relevant to the PY in which the transaction happens. the unutilized portion of the net sale consideration (not utilized before the date of furnishing the return of income under section 139) which is otherwise liable for capital gain tax shall be deposited in the capital gain account scheme within the period of due date for filing return of income under section 139(1).
Sudha Reddy
Due date of return of income for the AY relevant to the PY in which the transaction happens. the unutilized portion of the net sale consideration (not utilized before the date of furnishing the return of income under section 139) which is otherwise liable for capital gain tax shall be deposited in the capital gain account scheme within the period of due date for filing return of income under section 139(1).
If you file the return before due date, then its at the time of filing return (refer to Sec 54 (2) - The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139]
Sudha Reddy
If you file the return before due date, then its at the time of filing return (refer to Sec 54 (2) - The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139]
So which ever is earlier - filing of return or due date for filing of return.....
Thread Starter
mani charanSo, in the year of transfer either the investment should be made or the deposit should be made, Is this conclusion correct?
What is your understanding of year of transfer
Sudha Reddy
What is your understanding of year of transfer
The year in which the existing capital asset is transferred
Thread Starter
mani charanThe year in which the existing capital asset is transferred
Previous year or assessment year or financial year or calendar year?
Sudha Reddy
Previous year or assessment year or financial year or calendar year?
Assessment year of the transfer year
Thread Starter
mani charanAssessment year of the transfer year
Yes IF transfer done during previous year 2022-23 so before filing return/ due date i.e Jul 2023 if not invested and amount unutilised, deposit in CGAS
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