capital gain
This query is : Resolved
11 June 2011
how to avoid capital gain without investing in new capital asset,
elobrate
an women individual has sold a flat for Rs. 50 lakh and from sale consideration she used about 25 lakhs for repayment of loan which amount used for construction of house in husband plot. she was in bankrupt, she used remaining 25 lakhs for repayment of loan and she has huge debt in her name which she has no accountability for showing income tax department. she is unable to pay income tax for the capital gain which she earned during the previous year. currently she has some income earning from tutorials which is not properly earning.
her husband has a new house which is under constuction. can she take any advantage out of it by any means of changing title of the husband plot or through by showing the amount used to repay loan of the husband new house construction
thanking you
elobrate
an women individual has sold a flat for Rs. 50 lakh and from sale consideration she used about 25 lakhs for repayment of loan which amount used for construction of house in husband plot. she was in bankrupt, she used remaining 25 lakhs for repayment of loan and she has huge debt in her name which she has no accountability for showing income tax department. she is unable to pay income tax for the capital gain which she earned during the previous year. currently she has some income earning from tutorials which is not properly earning.
her husband has a new house which is under constuction. can she take any advantage out of it by any means of changing title of the husband plot or through by showing the amount used to repay loan of the husband new house construction
thanking you
11 June 2011
Do not try to hide the factual position of the assessee from the department. Compute the actual Capital Gains and adjust the business loss suffered by her during the year against such capital gains.
Do not try to shift her in his husband's new house as the creditors may place a claim over the under construction house.
The family has bright chances of becoming roofless.
The department will not accept any excuse in the circumstances when his husband is solvent. It will take its own course of action.
As the loan repaid for house is of the tune of 25.00lac, its cost of acquisition must be 25.00 lac or more. I do not foresee a big capital gain in this deal.
So it is advisable to follow the first step only and pay the taxes.
Do not try to shift her in his husband's new house as the creditors may place a claim over the under construction house.
The family has bright chances of becoming roofless.
The department will not accept any excuse in the circumstances when his husband is solvent. It will take its own course of action.
As the loan repaid for house is of the tune of 25.00lac, its cost of acquisition must be 25.00 lac or more. I do not foresee a big capital gain in this deal.
So it is advisable to follow the first step only and pay the taxes.
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