Long term capital gain calculation exempted u/s 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2016 LONG TERM CAPITAL GAIN CALCULATION EXEMPTED U/S 54
APPLY on 22/12/1995 and Paid Rs 8000/-
ALLOTMENT Detail – PAID Rs 12000/- 24/11/ 1997
Possession offered no - 6320 dated 04/10/1999 for Total consideration Rs 131280/-, Paid Rs 26611/-, Total paid up to 46611/- ,Balance to be paid in installments.
Possession Receive on 06/01/2000. Paid installments of Rs 1201/- monthly
Paid all amount with interest in 2003-2004.Total paid Rs 170179/-
Convince deed executed on 11/12/2013 ,spend Rs 11000/-,Total cost Rs 181179/-
Date Amount Index Index cost
22/12/1995 Rs 8000/- 1081/281 30775.8
24/11/1997 Rs12000/- 1081/331 39190.33
01/11/1999 Rs 26611/- 1081/389 73949.84
Dec99-Mar 2k Rs 4804/- 1081/389 13349.93
2000-01 Rs 14412/- 1081/406 38372.83
2001-02 Rs 14412/- 1081/426 36571.29
2002-03 Rs 14412/- 1081/447 34853.18
2003-04 Rs 75528/- 1081/463 176340.75
2013-14 Rs 11000/- 1081/939 12663.47
Total Rs Rs 181179/- Total Rs 456067/-.42 Paisa, Say 456067/-
Sold on 21/12/2015 for Rs 15,00,000/- to daughter thro full & final agreement
LTCG IS Rs 1500000-181179 = 1318821/-
LTCG after indexation =1500000-456067= 1043933/-
Exempted U/S 54 invested in #480/17, Pnp New house construction= 16/00/000/-
Balance amount arrange Housing loan from SBI,
Kindly advise above is right or any problem in taxation
SUNITA GUPTA
9417701251

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 January 2016 " #480/17, pnp" unclear terms.
.
However, as the cost of new house acquired is covering the capital gains hence there is no problem. The manner in which LTCG is computed is quite OK.

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2016 480/17 is plot no 480 and 17 is secter-17
my quary is deel between mother sunita gupta and daughter er aditi gupta at markit rate and payment thro banking channel

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 January 2016 As the deal has been executed properly exemption will be available.

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2016 Thankes for your prompt valuable advice
God may prosper your famailly ,as you are serving the public without any monitary gain
SUNITA GUPTA

RAHULSMITTAL

RAHULSMITTAL (Expert)
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02 January 2016 your indexation is not correct.
there will be one time indexation of whole amount paid. installment payment is in nature of payment for loan not for the payment of house.
the date from which indexation of whole amount of rs 131280 from the date of allotment.
but I will suggest calculate from the date of possession not allotment

see reference case laws also on google.

CA PARAS BAFNA

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02 January 2016 In case of allotment of flats in self financing scheme/ co-operative societies etc, as per the CBDT circulars ( No 471 Dated 15-10-1986 and 672 Dated 16-12-1993) these are treated as cases of construction and not the cases of sales. If you will go through the circulars, you can find that the yearly indexation method adopted by the Querist is at par with the intention of the circulars.

RAHULSMITTAL

RAHULSMITTAL (Expert)
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04 January 2016 but I guess there are new case laws in this regard. ok let me check th case of cooperative society