House sale: What is the deadline to spend money on capital positive aspects bonds to avoid wasting tax?

Question: If I promote my home in July 2021, when the tax is to be paid? If I need to spend money on the capital positive aspects bonds to avoid wasting tax, then by what time I’ve to speculate the cash? Please let me know whether or not I’ve to speculate the listed positive aspects or precise positive aspects within the bonds? – Akhilesh

Answer: An individual has to pay advance tax if his web tax legal responsibility after deducting the tax deducted and picked up towards the entire tax legal responsibility exceeds ten thousand rupees. So in case in case your web tax legal responsibility exceeds ten thousand in your whole earnings you need to pay the advance tax as per the due dates of advance tax i.e. fifteenth June, fifteenth Sep, fifteenth December and fifteenth March within the ratio of 15%, 30%, 30% and 25%. In respect of tax legal responsibility for capital positive aspects, the advance tax needs to be paid within the steadiness instalment after date of sale of the asset. Since your transaction of sale will occur in July 2021, you’ll have to pay the advance tax on the remaining due dates however you’ll have to pay 45% of the advance tax by fifteenth September, 2021.

In case you want to spend money on capital positive aspects bonds of specified monetary establishments to avail the exemption underneath Section 54E, you need to make the funding in these bonds inside six months from the date of sale of the property regardless of the date of receipt of the consideration. It is the capital positive aspects computed after making an allowance for price inflation index of 12 months of buy and sale on which you need to pay the advance tax. Likewise you need to pay the taxes on listed positive aspects solely.

Balwant Jain is a tax and funding skilled and could be reached on jainabalwant@gmail.com

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