Get tax relief by September 30 by spending on a home purchase

- Antenna: Vivek Mehta

- If the amount of capital gain made after the sale of land or plot invests 50% of the total amount of capital equity of a small-medium size company, it will also get tax benefit.

The legal benefit limit has been extended by three months so that the taxpayer can avail tax benefits by investing in housing property. The time limit for benefits given till June 30 has been extended to September 30. At the same time, there has been a growing effort to boost the housing sector.

The Central Board of Direct Taxes has made another decision to boost the construction industry. Special relief has been given to the taxpayer under sections 6 to 8 GB of the Income Tax Act.

Taxpayers across the country are facing a different kind of dilemma due to the second wave of Corona. That is why the benefit period under sections 3 to 6 GB of the Income Tax Act has been extended for three months. This was announced earlier. To avail this benefit, the taxpayer was required to invest in the housing property only after April 1, 2021. Taxpayers will now be given tax benefits if they have invested in housing property by September 30.

This benefit will be given for the investment, deposit, payment, acquisition, purchase, construction and many other investments made by the taxpayer. The purchase or investment should be made from April 1 to September 30. This benefit will not be available on investments made late from September 30. An announcement in this regard has been made by the Union Finance Department on June 9. Section 4 and Section 4 GB of the Income Tax Act provide relief in long-term capital gains. This benefit is being given to the individual taxpayer or to the Hindu undivided family. This benefit is paid on the amount of capital gains made after the sale of the property or if the capital gains amount is withheld anew.

If the taxpayer uses the same amount to build a new house or to buy a new property in order to avail the tax benefit on capital gain on residential property as per the provision made in Section 3 of the Income Tax Act, then the benefit received under Section 3 Can be found. Similarly, the proceeds from the sale of the residence, i.e. the amount of capital gain, if it is invested in the shares of the eligible company, will also be deducted.

On the other hand, if the amount of capital gain-capital gain due to sale of property other than a plot or a residence in Section 8GB is withheld in the shares of small and medium-sized companies, i.e. MSMEs, it can also get tax relief on capital gains. Yes, there is a condition that the taxpayer who invests in it has to invest 50% of the capital gain. This amount should be equal to 50% of the total share capital of the company. In other words, the company's share capital is Rs. Provision has been made in the new clause that the taxpayer can get relief on capital gain only if the taxpayer has received a minimum investment of Rs 5 lakh.

The time limit for tax benefits under Section 4 of the Income Tax Act was extended in the 2016 budget of the Center. Benefit under this section is given for purchase of new property, new construction i.e. construction of two new properties. Yes, the capital gain for that taxpayer is Rs. Should be less than 3 crores. Any taxpayer is given the opportunity to resort to this option only once in a lifetime.

In the old provision this benefit was given for building a single property and purchasing a single property. The deadline for linking permanent account number and Aadhaar card has also been extended from June 30 to September 30.