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Section 54

As per section 54 of income tax act...if assesse transferred his house and got capital gain.. Can he claim deduction only for the year of transfer. Or can he not claim for the year of transfer and claim it in the next financial year in which he actually purchased the house


Sai Teja

Sai Teja

CA Inter

12K+

09-Mar-21 10:53

17

Answers (4)

Best Answer

He can claim in the year of purchase provided he deposits the capital gains within 6 months of transfer in a capital gains scheme account as per Sec 54(2)


sudha reddy

sudha reddy

Moderator

09-Mar-21 11:10

Date of transfer 15th March 2020(F.Y 2019-20) Date of deposit 15th August 2020 (F.Y 2020-21) Date of purchase 15th April 2021(F.Y 2021-2022) For which F. Y is he eligible for deduction??


Sai Teja

Sai Teja

CA Inter

12K+

09-Mar-21 11:21

Date of transfer 15th March 2020(F.Y 2019-20) Date of deposit 15th August 2020 (F.Y 2020-21) Date of purchase 15th April 2021(F.Y 2021-2022) For which F. Y is he eligible for deduction??

A taxpayer who is unable to re-invest capital gains in the specified investment before furnishing the return of income and specified time limit for the investment has not expired, is required to deposit such unutilised capital gain in the capital gains account before furnishing return of income but not beyond the due date for furnishing return of income. The deposit into the CG Account Scheme should be before filing return for one to claim in year of transfer, it need not be in the same PY. In the given case , transfer is in PY 2019-20, but amount deposited within 6 months and before furnishing return so assessee can claim in PY 2019-20 and since the amount is utilised for purchase within 2 years from date of transfer there is no further liability


sudha reddy

sudha reddy

Moderator

09-Mar-21 17:40

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