Unfortunately there is no means to save tax now. The reason is that savings in case of tax on long term capital gains from asset other than sale of residential house can be done either u/s 54F or 54EC . Both the provisions require that the deposit or purchase of assets should be within one year before or two years after the sale of asset on which long term gains have arisen. In your case , that date has already elapsed. So there is no chance of saving the tax the amount is chargeable to tax as per proviso to section 54F(4) of the I T Act Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then, (i) the amount by which (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of three years from the date of the transfer of the original asset expires ;…
Why bother to save tax when you have already done it? Yes, you have already saved tax to the extent you earned interest from Capital Gains Account Scheme. This is what you have already gained
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- You did not pay any advance tax in the year in which gains (LTCG) was earned.
- Even now, after three years , when amount of LTCG is to be taxed , rate of tax @ 20 % shall be same .
- You earned interest on the amount of gains , this reduces the net tax which is paid now after expiry of three years.So , even if you earned meager 5 % each year , in two years you have earned more than 10 % . So effectively you are paying tax @ 10 % only and not 20 % . In fact , if you keep the term Deposit under CGAS in a bank , may be you will be earning much higher interest and that reduces your liability to tax in the year when three years expire.
This is a better tax planning!
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