R Bala (Not Applicable) 16 December 2012

Capital gains tax and sale of property

Hello,

On reciept of advanced payment from the lawyer,10% & sale value of the sale agreement was done and registered and stamp duty was paid in July 2012.The balance 90% amount was recieved from the finance institution on 5th December 2012 after a period of 5 months.To avoid capital gain tax I have to invest in goverment approved Bonds.In such case shall I have time of six months from the date the entire amount recieved or within 6 months of the date of agreement??

Please Clarify.

Thanks.

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1 Replies

RAJU (STUDENT) 17 December 2012

Such investment is made "at any time within a period of six months after the date of such transfer". Hence date on which legally the property was sold irrespective of whether price fully paid or not. Date of sale agreement is correct date.