There are lot of schemes benefited for Capital Gain Deposit Amount. One can invest the amount of Long Term Capital Gain in specified bonds issued by the Rural Electrification Corporation (REC) or National Highway Authority of India (NHAI) within a period of 6 months from the date of transfer of assets to get exemption under this section.
The Scheme of Deposits:
Although under section 54/54F, the assessee has given 2 years to purchase the house property or 3 years for construction of house property, but the capital gain on transfer of the original assets is taxable in the previous year in which the transfer took place. The return of income of that previous year is to be submitted by the specified date. Hence, the assessee will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable. To avoid the above situation, the Income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit accounts Scheme-1988.
There are two type of accounts.
The Scheme of Deposits:
Although under section 54/54F, the assessee has given 2 years to purchase the house property or 3 years for construction of house property, but the capital gain on transfer of the original assets is taxable in the previous year in which the transfer took place. The return of income of that previous year is to be submitted by the specified date. Hence, the assessee will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable. To avoid the above situation, the Income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit accounts Scheme-1988.
There are two type of accounts.
- Deposit Account (This is a saving account.)
- Deposit Account (This is a term Deposit Deposit account.)
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