Capital Gains Exemption: Refund of TDS on Property

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  1. Lingareddy

    Lingareddy New Member


    We have sold property in Jun 2014 for more than 50L and TDS was deducted by the buyer.
    We have not yet reinvested the sale proceeds as we couldn't finalise the property until now. Two questions here.

    First is about long-term capital gains: Is it one year or two years maximum to reinvest the sale proceeds in property to avoid long-term capital gains tax?

    Second is about the TDS: How and when to claim the refund of TDS paid in Jun 2014?
    Is it linked with reinvestment of sale proceeds or independent? Is it compulsory to reinvest the sale proceeds in property to claim refund of TDS?
    Can it be claimed as part of the current year's (2014-15) income and loss IT return filing?

    Because, if we will repurchase the property after Mar 2015 how can we claim the TDS paid while we sold the flat?

    please help us to understand.

    Thanking you in advance.
    With best regards,
  2. Karan Batra

    Karan Batra Well-Known Member

    1. You can reinvest the Capital Gains in another residential property in the next 2 years
    2. You can either reinvest in Residential Property and claim exemption under Section 54 or purchase bonds of NHAI & REC and claim exemption under Section EC. Refer:
    3. If you purchase the property after Mar 15, you would be required to deposit the amount in the Capital Gains Account Scheme. Refer:
    4. If you reinvest in Property/Bonds or deposit the amount in Capital Gains Account, you can claim Refund of TDS on Property at the time of filing of income tax return.
  3. piyush1898

    piyush1898 New Member

    I net basis that is In may 2016.

    Can I ghave sold property wide agreement made in march 2016 and buyer has deducted tds on paymet refund of TDS deducted by buyer in return to be filed for fy 2016-2017 ?

    I am asking that because I shall show capital gain of sale of property in return of FY 2015-16
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