Capital gain
This query is : Resolved
ADS ASSOCIATES
(Querist)
10 November 2012
One of My clients has purchased 3 Industrial Galas as on 02/05/2005 which he has sold on 25/10/2012 to various parties for about 2200000/-.
Against the above proceeds he has purchased a Residential house.
Can he claim exemption u/s 54F for FY 12-13?
Your reply would be appreciated
Against the above proceeds he has purchased a Residential house.
Can he claim exemption u/s 54F for FY 12-13?
Your reply would be appreciated
10 November 2012
For claiming exemption u/s 54F the assessee should be individual or HUF and available only for long term capital gains.
If yes, He can claim proportionate exemption to the amount invested in a residential house provided he does not own more than 1 residential house property on the date of transfer(excluding the new house property ).
If yes, He can claim proportionate exemption to the amount invested in a residential house provided he does not own more than 1 residential house property on the date of transfer(excluding the new house property ).
CA PARAS BAFNA
(Expert)
10 November 2012
An Industrial Building is a depreciable asset and the resulting capital gain arising on transfer of a depreciable asset is short term capital gain as per Section 50.
However, the concept of short term capital asset is limited for Section 50 only.
.
Whereas, in the per view of Section 54F, as the Capital Gain is arising out of transferring of a "long term capital asset", capital gain is eligible for exemption on satisfying other conditions prescribed U/s 54F.
However, the concept of short term capital asset is limited for Section 50 only.
.
Whereas, in the per view of Section 54F, as the Capital Gain is arising out of transferring of a "long term capital asset", capital gain is eligible for exemption on satisfying other conditions prescribed U/s 54F.
Prakash Kochar
(Expert)
11 November 2012
He can avail exemption u/s. 54F as above replies and/ or he can claim exemption u/s. 54EC by investing amount of Capital gain in prescribed bonds.
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