If you sold a capital asset during the financial year 2014-15 and have not yet invested the proceeds to claim an exemption, do so now!
Since the government has extended the due date of filing your income tax return you can now invest your capital gains by 31st August. Here are 3 ways to save tax on the gains –
By Purchasing Another Property – The Income tax act allows exemption on capital gains to the extent these have been invested in purchasing a new house property. The taxpayer has to invest the amount of capital gains and not the entire sale proceeds before 31st August 2015, to claim exemption for FY 2014-15.
By Investing in Capital Gains Account Scheme – If capital gains have not been invested in a property, the gains can be deposited by opening a capital gains account in a PSU bank or other banks as per the Capital Gains Account Scheme, 1988. This deposit can then be claimed as an exemption from capital gains, and no tax has to be paid on it. Open your account and deposit the proceeds before 31st August 2015.
Purchasing Capital Gains Bonds – If the tax payer does not intend to purchase another property, there is no use of investing the amount in a Capital Gains Account Scheme. In such a case, tax can still be saved on capital gains, buy investing them in certain bonds. Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose.
Read in detail about Capital Gains and Exemption on them – in our very detailed and comprehensive guide – HERE.