Deepak Goyal (Accounts and Taxtion Department) (29 Points)
11 March 2013Respected to all
sir
Please Suggest me As soon as possible wat to do in this case
Indivisual sell property of worth Rs 1 cr, and invested in RES HP
Details of Investment
35 laks of money in bond
remaning 65 in HP but aggrement made by other party to pay the 65 Laks in monthly installment
is exemption is calculated on the amount of Downpayment and Installment upto the year end or the total purchase amnt
please suggest me as soon as possible
thanking u
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 12 March 2013
In this case only the Capital Gains that arises from the sale of property will be requried to be invested. If the capital Gains remain uninvested upto the date of filing the return relating to the A.Y. relevant to teh F.Y. then the same need to be deposited in the CGAS Scheme and exemption can be claiemd. These CG need to utilized within a period of 2 years from the date of transfer & claim exemptino u/s 54
Mihir
(Wealth Manager)
(5293 Points)
Replied 12 March 2013
Capital gain tax in not on the sale price of the property. One needs to compute the capital gain from the purchase and sale of that particular property. You have not mentioned the purchase price and the date of purchase and the date of sale of the property.
Deepak Goyal
(Accounts and Taxtion Department)
(29 Points)
Replied 12 March 2013
dear mihir sir and giridhar sir i want to ask u about the (instalment) if he pays on the purchase of house from the money recuved by him on the sale of property, when we compute exemption thanshall we take a purcase price or the total installment which he pays during the yaer on such purcgase of house under section 54F
C.Balaji
(Learner)
(1867 Points)
Replied 13 March 2013
Dear Deepak...
My view is...
As per sec 54/54f, Capital Gains/Sale Consideration should be invested in a residential House Property before the due date of filing the return. If it is not possible to invest within the due date, the same amount should be deposited in the capital gains scheme. And Residential House Property should be purchased within 2 years or Constructed within 3years.
In your case, You have paid the instalment amount and not invested enitre SP/CG in HP before due date or not deposited in the Capital gains scheme. Installment amount paid before the due date is allowed as deduction.
Learned members, Correct me if am wrong.
CAclubindia
