I sold my apartment on November 30, 2021 by signing up for a sale agreement. I received the sales balance after 3 months as the buyer has a bank loan and the disbursement will be done in 3 months. What is the deadline for me to pay capital gains tax? Should I pay within the same financial year i.e. 2021-22 or within six months of signing up for the purchase agreement or completing the entire transaction? Also, until I pay no capital gains tax, can the money be kept in my savings account? – Jagadish Shah
Any transfer of a capital assets in any fiscal year, the taxpayer is only required to pay tax in the fiscal year in which the transfer takes place. Furthermore, if a taxpayer intends to obtain an exemption under section 54 of the Income Tax Act to purchase another residential property, they can invest the proceeds within 2 years of the sale of the property. old product. If the taxpayer is unable to invest the proceeds by the time of filing the tax return, the funds need to be deposited in the Capital Gains Account Plan.
Therefore, in your case because the agreement is registered in Novemberthe capital gain arising in this case will be taxable for fiscal year 2021-22 and you are required to pay the prior tax in the December term due on 15 December 2021 and in monthly installments 3 is due on March 15, 2022. All transactions to be reported on income tax returns are due by July 31, 2022, unless extended.
Please note that the same deadline i.e. 31st of July 2022 will apply to the transfer of the amount from your savings account to the Capital Interest Account.
This question was answered by Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm. Send you personal finance questions at mintmoney@livemint.com to have them answered by experts.
