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Ask Mint Money | You can revise your tax return within the given time limit

Ask Mint Money | You can revise your tax return within the given time limit
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First Published: Wed, Feb 16 2011. 10 19 PM IST
Updated: Wed, Feb 16 2011. 10 19 PM IST
I filed my income-tax return for the assessment year 2010-11 before the due date. I filed a revised return in December 2010. However, due to some apparent mistake, I again want to file a revised return. Please advise regarding the same and the last date for filing a revised return.
—N. Luhana
As per section 139(5) of the Income-tax Act, if any person having furnished a return of income before the due date wants to file a revised return, he may do so at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. Further, as per the Commissioner of income-tax.v Dr. N. Shrivastava 170 ITR 556 (1988) (high court of Madhya Pradesh), the court held that any number of revised returns could be filed before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
In view of the above, you can furnish the second revised return before 31 March 2012 or completion of assessment, whichever is earlier. There is no limitation on the number of revised returns filed, provided the same is filed within the time limit prescribed for the same.
I sold a property and used the proceeds to invest in mutual funds, buy a flat and a unit-linked insurance plan (Ulip). I bought a one-bedroom flat in Hadapsar, Pune. I made payments through February 2006 to May 2006. Cost of the flat was Rs10.09 lakh and I took a loan of Rs 4.25 lakh. Possession of the same was given to me in November 2007. I sold the property in April 2010 for Rs 21 lakh (loan repaid by buyer: Rs 3,96,405). The remaining Rs 17,03,595 came to me. I invested the same in mutual funds (Rs 10 lakh), Ulip Rs 5.5 lakh and soft loans repaid Rs 50,000. I would like to know how do I save short-term capital gains since I sold the property before 36 months of usage (from possession to sale).
—Santosh Pillai
As per the provisions of the Act, only long-term capital gains are exempt from tax subject to certain conditions. However, since in your case you have sold a property within three years of its acquisition, the capital gain is a short-term gain. Such a gain is not entitled to any exemption under the provisions of the Income-tax Act.
Therefore, you would need to pay tax on such short-term capital gains as per the normal slab rate applicable to you. However, you can claim deduction by investing up to Rs 1 lakh under section 80C of the Act and Rs 20,000 in long-term infrastructure bonds under section 80CCF of the Act.
Queries and views at mintmoney@livemint.comt
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First Published: Wed, Feb 16 2011. 10 19 PM IST