Query 1]

I sold my ancestral land for Rs 33 Lacs on 24.05.2010. The sale proceeds are kept in S/B a/c since then. I acquired a residential house from G’Noida Authority ( allotted on 29.11.2007) in FY 2012-13 by executing lease deed on 18.06.2012, jointly with my husband out of other sources of finance, including Housing Loan, PPF withdrawal, etc. Can I claim exemption from Tax on LTGC on this house. On the date of sale of land, I owned another Flat jointly with my husband. If I cannot claim exemption, as above, can I buy a residential flat now and save Long term Capital Gains Tax of about Rs 10 Lacs (including Interest). The IT Return for FY 2010-11 is yet to be filed. I shall be grateful for your advice. [Neelam Gupta- anilg.244@gmail.com]


  1. It appears that the land transferred is not an Rural Agricultural land
  2. Exemption can be claimed U/s 54F towards Long Term Capital Gain (LTCG) arising from transfer of any Land (ancestral or otherwise) if the Net Sale Consideration is invested for purchase of another residential house property within a prescribed time.
  3. Time limit to Purchase the Property:
    Exemption u/s 54F is available if the Assessee invests net sale consideration for purchase of a residential house property
    a] within One year before or two years after the date of transfer; or
    b] constructs a residential house within a period of three years from the date of the transfer of the original house.
  4. Scheme of Deposits:
    Although under section 54F, the taxpayer is allowed 2 years to purchase or 3 years for construction of the house property, but the capital gain on transfer of the original assets is taxable in the previous year in which the transfer took place.
    The return of income of that previous year is to be filed before the specified date i.e., due date.
    Hence, the assessee will have to take a decision for the purchase/ construction of the house property before the date of furnishing of the return otherwise the capital gain would be taxable.
    To avoid the above situation, the Income Tax Act has specified an alternative in the form of a Deposit under the Capital Gain Deposit Accounts Scheme-1988 (CGDAS).
    The amount of net sale consideration, which is not utilized by the assessee for purchase or constructions of the new house before the due date of furnishing the return of income, need to be deposited by him/her under the Capital Gain Accounts Scheme, before the DUE DATE of furnishing the return. After Deposits, the amount already utilized by the assessee for purchase/ constructions of the new house, along with the amount so deposited, shall be eligible for exemption under section 54F in the year in which LTCG has arisen.


With above basic idea and background, opinions on your specific queries are as under:

  1. Though you have not purchased another residential house property within the prescribed time period, the amount should have been deposited by you in the CGDAS so as to enable you to claim the exemption. The first instance of payment thereafter should have been done by withdrawing from CGDAS A/c.
  2. Alternatively, the payment (from PPF Withdrawals, Housing Loan etc) should have been completed before 31.07.2011. Depending upon your payment till 31.07.2011, you can have an option of claiming an exemption u/s 54F either fully or proportionately. Your part ownership in an existing house property with your husband would not have impaired your exemption claim u/s 54F.
  3. You don’t have any option of buying another residential house property now as the time frame for investment has expired.

Query 2]

I have purchased flat on 27.11.2012 (Sale Deed). I have taken home loan from SBI. I had taken another loan from employee’s credit co-operative society for the repairs and maintenance of our other home on 20.03.2013. This second home is in the name of my father (owner). For above, kindly guide me as to whether I can claim income tax rebate on both the above loan (interest and principal) as both loan are taken by me.  [Sandeep Gajbhiye- syg6147@gmail.com]


Ownership is a condition precedent for claiming deduction u/s 24(b) and u/s 80C towards the Interest and principal repayment of the loan. The second house property for which the loan is taken is belonging to your father and resultantly, you will not be eligible for any deduction u/s 24(b) & u/s 80C towards the interest & Principal repayment of the loan taken from your employee’s co-operative society.








Chartered Accountant



Query 1]

My wife is a Central Government employee & her gross salary is Rs. 2,90,000/- without giving effect to the provisions of sections 80C  to 80U.  Her total salary after above provisions is Rs. 1,55,000/-.  She also has interest income of Rs. 20,000/- on fixed deposits with banks.  She has not filed her return for the assessment year 2012-13.  Now my question is:

  1. Is she exempt from filing IT return under section 139(1C) for the assessment year 2012-13?
  2. If not, then can she file the IT return now electronically?
  3. If she files the IT return now, then under which section:
    (a) Before due date U/s 139(1) or
    (b) After due date u/s 139(4)
  4. What is the time limit for filing IT return & belated IT return? [Dr Jacob Sakariah- jacobsakariah@hotmail.com]


  1. For the AY 2012-13, she is required to file the return of income and there is no exemption u/s 139(1C) in filing the return of income. Notification No. 36/2011 Dated 23.06.2011 exempting the Salaried Individual assessee with income not exceeding Rs. 5 Lacs was for the AY 2011-12 only and no such notification is there for the subsequent year.
  2. She can file the return of income electronically (e-filing) also
  3. The return now would be u/s 139(4) as the due date of filing the return is over in your case.
  4. The due date of filing the return in such case was 31st But you can file belatedly u/s 139(4) up to 31.03.2014. Even though return can be filed up to 31.03.2014 u/s 139(4), penalty of Rs. 5,000/- is leviable if the return of income is not filed within one year from the end of the relevant Assessment Year (i.e., 31.03.2013, in your specific case).

Query 2]

My father gifted me Rs. 12,00,000/- & I kept funds in FD in bank, I have PAN card & I don’t have income within taxable limit. Do I need to file tax return on the ground of having received the gift during the year or for other reason like this? Do I need to get the Gift deed registered? [Dr. Vivek Pande-vivekkrishkant@yahoo.co.in]


The filing of the return is not mandatory if the Gross Total Income (GTI) is below the exemption limit. Registration of gift deed is not mandatory for the purpose of Income Tax Act-1961.

Query 3]

My PAN is having husband’s name instead of father.  Kindly advice me the procedure to be adopted for making rectification so as to incorporate the name of my father in the PAN Card? How I can get it corrected? [Vatsala.Modh@licindia.com]


You can get the PAN card changed with your Father’s name in it. For this, you have to make an application in “Request for New PAN Card or/and Changes or Correction in PAN data” and have to attach the documents in support of your submission. The form can be downloaded from the websites of UTI Technology Services Ltd (UTITSL), National Securities Depository Ltd (NSDL), or the I-T department [www.utitsl.co.in, www.tin-nsdl.com or www.incometaxindia.gov.in]. You can tick in tick in the father’s name box on the left margin of the form. You have to attach color stamp-sized photographs on the form.  The form can be submitted at PAN application centers of UTITSL and NSDL, the addresses of which are available at the above mentioned website.

Query 4]

I read in the earlier issues of TaxTalk about the availability of Deduction u/s 80DD. With respect to this, I have a query.  Can I claim deduction towards my sister’s daughter u/s 80DD. She is mentally handicapped- 40%. for exemption. It may further be noted that my sister is widow and she and her child is totally dependant on me. Please advice and elaborate.. [rao2319k@gmail.com]


Deduction under Section 80DD is available to an individual/HUF who incurs any expenditure for the medical treatment, training and rehabilitation of a disabled dependant. For the purpose of section 80DD, the term ‘dependent’ as mentioned above, refers to the spouse, children, parents, brothers & sisters of the individual. Expenses towards the treatment of your Sister Children will not enable you to claim the deduction u/s 80DD.