File return to claim refund
QI sold a piece of land in Raipur this year which I acquired it in 1997. I did not have time for indexing since I had to get back to the US and was told that I can claim the deduction before March 2019. I paid the full capital gains tax at 20.6 per cent and have received the certificate from the buyer. So can please clarify the following:
Can I avail the indexing benefit now and get a refund?
For indexing purpose, how to get fair market value of the property as on April 1, 2001?
I have calculated all the expenses in acquiring, maintaining, security, taxes, water etc related to this property. Can I claim these expenses as deduction?
Since I have paid the capital gains tax in full, can I repatriate the sale proceeds to the US?
I was told that I can invest some of this money in government tax free bonds. How much can I invest? SAMEER GUPTA Via email
A) You need to file your income- tax return to claim the refund on long- term capital gain on the sale of property. The month in which the property was sold during 2018 is not mentioned in your query. If the property was sold before March 31, 2018, the cost inflation index for FY2017- 18 i. e. 272 will be applicable and return of income can be filed to claim the refund for the excess tax paid by you, with a fee of ` 5,000 for the delay in filing of return. However, if the property is sold during the current FY i. e. 2018- 19, the cost inflation index of 280 will be applicable and the return of income can be filed only after April 1, 2019.
The assessee has an option to substitute fair market value as on April 1, 2001, for properties purchased before that date. The fair market value can be obtained from the Registration Authority. The commission paid on property can be claimed and deducted from the sale consideration. However, expenses incurred on improvement of the property will be allowable and qualify for indexation but expenses for maintenance, taxes etc will not be allowable.
The repatriation of sale proceeds are generally permissible after the obligation of payment of tax liability is completed. The investment in capital gain bonds is subject to a maximum of ` 50 lakh.
Repatriation of sale proceeds to other country is allowed after you pay all the taxes