I bought my flat on 30 November 2021 by registering an settlement to promote. I obtained stability gross sales proceeds after 3 months as the client had a financial institution mortgage and disbursal is finished after 3 months. What’s the time restrict for me to pay capital positive aspects tax? Ought to I’ve paid in the identical monetary 12 months i.e. 2021-22 or inside six months of registering settlement to sale or finishing full transaction? Additionally, until I don’t pay capital positive aspects tax, can the quantity be stored in my financial savings account? – Jagadish Shah
Any switch of a capital asset in any monetary 12 months shall be taxable within the arms of the taxpayer solely in that monetary 12 months by which such switch passed off. Additional, the place a taxpayer intends to avail exemption beneath part 54 of the Earnings-tax Act for the acquisition of one other residential property, they might make investments the quantity of capital acquire inside 2 years of the sale of outdated property. If the taxpayer shouldn’t be in a position to make investments the capital acquire until the time of submitting of tax return, then the quantity must be deposited within the Capital Achieve Account Scheme.
Therefore, in your case for the reason that settlement is registered in November, the capital acquire arising on this case could be taxable within the FY 2021-22 and also you have been required to pay advance tax thereon within the December instalment due on 15 December 2021 and within the March instalment which was due on 15 March 2022. The complete transaction must be reported within the income-tax return, which is due by 31 July, 2022, except prolonged.
Please notice that the identical deadline i.e. 31 July, 2022 would apply for switch of the quantity out of your financial savings account to the Capital Positive aspects Account.
This question is answered by Amit Maheshwari, Tax Associate, AKM International, a tax and consulting agency. Ship you private finance queries at email@example.com to get them answered by specialists.