Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2013 residential House property COST OF ASSet 450000
YEAR of acquisition 2005-06

Sale of asset in F Y 2012-13
Sale cosideration 3000000

Reinvested in another house property 3000000
out which 2000000 bank loan

How much capital gain and exemption u/s 54??
whole 30000000 or only 1000000
pls guide ,,

KCJM and Associates

KCJM and Associates (Expert)
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03 January 2013 Dear Sir/ma'am,
As Per your question,
Solution:

Net Consideration- 30,00,000.00

Indexation- 4,50,000*852/497- (7,71,428.57)

capital gain- 22,28,571.43

Reinvestment- 30,00,000

Exemption u/s 54: capital gain
or
Investment in house property

CG > HP- Difference amount would be tax
under CG.

HP> CG - Amount of Capital gain would be
exempt.

As per given case- Total Amount exempt would be Rs. 22,28,571.43

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2013 MR KCJM _ IN , Thanks for your reply

total investment made in new house propety is RS 30 00 000 out of which 20 00 000 is taken as loan form bank
whole capital gain
not utilise so this i think Out of 2228571 only 1000000 is exempt and balance is taxable as capital gain what is your suggestion or opinion .

KCJM and Associates

KCJM and Associates (Expert)
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03 January 2013 Sir,
There was some confusion, after research i found out, there will be partial treatment.
Total amount u invest from capital gain is 10,00,000 out of 22,28,571, so exempted amount would be 10,00,000 and taxable would be 12,28,571.

KCJM and Associates

KCJM and Associates (Expert)
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