Is there a penalty if capital gains tax on real estate is paid late or delayed, after the sale of property?

digvijay, Mumbai

15th February 2019

Property Tax in Mumbai

capital gain tax

capital gains on property

penalty on delay of capital gain tax payment

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Hi,
If the amount is not utilised within three years for purchasing or constructing a house, it will be taxable after the expiry of three years from the date of sale. In your case, if the amount is not utilised within three years, then it will be taxable at 20% in 2019-20, along with 4% cess. No penalty will be levied.

Vineet Tendulkar, Mumbai

18th February 2019

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Hello Digvijay,
Finance Ministry has extended the deadline to file ITR by a month from July 31, 2018 to August 31, 2018. Therefore, if you file your ITR post August 31, deadline, you will be liable to pay penalty.
As per the new law, a penalty of Rs 5,000 will be levied if the return is filed after the due date but before December 31 of that year and Rs 10,000 post December 31. However, as relief to small taxpayers, if your income is not more than Rs 5 lakh, the maximum penalty levied will be Rs 1,000.

Sankalp, Mumbai

18th February 2019

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