19 December 2012
Dear Sir, My Friend's Father has Sold the Land(Forefather Land) in April 2010 for Rs.20 Lac.and deposited the sum of amount in his Son's Account from where they are getting the Interest also from this amount they have purchased a house of Rs.5 Lac My friend Father Died on 2011. When my friend got the details that the land sold by his father is not an agricultural land(Because it is under the 8 Km distance from the Town). he is worry of the Capital Gain tax, as my friend don't came under the Tax Slab he has not filed the Income Tax return till now so kindly guide whether my fried can purchase any Agricultural land and the Second Property or anything else from the amount left so that he can Exempt the Capital Gain Tax.
19 December 2012
As the two years are expired from the date of sale of land, there is no use of money invested in residential house. But he can claim investment of Rs. 5 Lakh which is invested before his father’s death….But I want some clarification from you, If the Grandfather of your friend gifted under will a property to your friend and the new house purchased is on the name of your friend and there is no other residential house then an only then he can claim deduction u/s 54F from the capital gain arise from transfer of Long term Capital Assets and gain arises out of that… Your friend has still 3 months to file his return of Income arise during the period of 01/04/2010 to 31/03/2011, as belated return for the said period can be filed upto 31/03/2013 Regards, Neha Chauhan
i Want to Add below mentioned point to the earlier message posted
Also, 1) The Amount father deposited in friend's account does not belong to Friend, 2) As friend is having Two Brother and One Unmarried Sister, it include their Shares also, and also of his Mother 3) The House Purchase by Father in the name of Friend is only the sole house on friend name
So kindly guide whether he can by new property or Agricultural Land in the name of his Brother of Sister, what else he can do to exempt the Capital Gain Tax.
CAclubindia
