Insufficency of cash to pay income tax in case of LTCG

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  1. If assessee has received sale consideration in kind , and he has huge capital gain but
    he has not enough cash ( as he has received sale consideration in kind ) to pay his tax liability.
    what is the way out????
    Last edited: Feb 13, 2015
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    If you have received a Residential House in place of the capital asset, then you can claim exemption under Section 54/ Section 54F

    In all other cases, you would be required to pay the Capital Gains Tax from your own pocket
    avinash tiwari likes this.
  3. dear Gaurav sir ,

    But I have received Comercial shop , so i can't claim exemption u/s 54F
    and how can I pay when I don't have cash???
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    In such a case, tax exemption is not allowed and you would be required to pay capital gains tax from your own pocket.

    There is no other option

    If you dont pay tax, interest and penalty would be levied on you for not paying tax
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