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Mihir Tanna |1054 Answers |Ask -Follow

Tax Expert - Answered on Sep 07, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Ravindra on Sep 07, 2022Hindi

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Dear Sir, I shall be thankful to you if you can give your valuable answer for my following query.

1. I sold a piece or part of my residential plot to someone, say A in Financial Year 2021-22. From the gains of such sales, I purchased Capital Gain Bonds - 54EC to lessen my Capital gain tax for FY 21-22. I know that the max amount of purchase of capital gain bonds limits to Rs 50 lakh in a Financial Year.

2. Now I intend to sell the remaining part of my residential plot to someone, say B in this Financial Year 2022-23. Can I purchase once again the Capital Gain Bonds in this year 2022-23 also from the sale amount to minimise my capital gain tax for FY 2022-23?

Kindly clarify at the earliest

Ans: Yes, you can claim tax exemption on sale of residential plot by investing capital gain amount in specified bonds within 6 months of transfer of plot subject to upper limit of Rs 50 lakh of FY 22 23 and other specified conditions.

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Question by Ravindra - Oct 11, 2022Hindi

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Dear Sir, I shall be thankful to you if you can give your valuable answer for my following query. 1. I sold a piece or part of my residential plot to someone, say A in Financial Year 2021-22. From the gains of such sales, I purchased Capital Gain Bonds -- 54EC to lessen my Capital gain tax for FY 21-22. I know that the maximum amount of purchase of capital gain bonds limits to Rs 50 lakh in a Financial Year. 2. Now I intend to sell the remaining part of my residential plot to someone, say B in this Financial Year 2022-23. Can I purchase once again the Capital Gain Bonds in this year 2022-23 also from the sale amount to minimise my capital gain tax for FY 2022-23? Kindly clarify at the earliest. Waiting for your reply.

Ans: Since you are having separate sale deeds, they will be treated as separate sales. You can invest the capital gain to 54EC bonds as they are in different financial years.

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Mihir Tanna |1054 Answers |Ask -Follow

Tax Expert - Answered on Dec 02, 2022

Question by Arun - Dec 02, 2022Hindi

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Sir, if my capital gain after indexation for sale of residential property in current financial year is Rs 67 lakh, can I invest Rs 50 lakh in tax saving bonds this year, deposit Rs 17 lakh in capital gains account, and deposit the remaining in tax saver bond from that account in the next financial year? Please advise.

Ans: No, to avail the benefit of specified bonds, Investment must be made within 6 months from date of transfer of asset (i.e. residential property) and maximum exemption of Rs 50 lakh is available.

Option of investing in a Capital Gains Account is available in case you plan to invest an amount of Long Term Capital Gain earned from a residential property into another residential property and you are unable to utilize money in construction or buying a new property before filing Income Tax Return.

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