capital gain

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Priyanka Dubey

Priyanka Dubey (Querist)
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18 July 2011 According to sec 54F is it allowed if investment of one house arises in two consecutive years

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 July 2011 Case-1
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If you are asking about investment in a Residential house in 2 consecutive years, it can be done.
Example-1 ( Last Date of Return 31st July)

Capital Gain arises on 03-08-2011
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Investment can be made in FY 2011-12 and
in FY 2012-13 up to 31.07.2012.

Case-2
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Capital Gains arising in 2 consecutive years and investment in a single house
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Capital Gain arises on 03-08-2011
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Investment can be made in FY 2011-12 say on 28-02-2012. Sales Consideration is 25.00 lacs of the original asset. This House , being the only house , purchased for Rs 50.00 lacs. 54F Allowed.

Now in the FY 2012-13
LT Capital Gain arises on 04-08-2012 on selling of a capital asset for Rs 34.00lac.
You can claim deduction in respect of the house purchased on 28-02-2012 to the extent of Rs 25.00 lacs.

Pl. Wait for experts' opinion also.

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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18 July 2011 In Case 2, I differ with Paras Ji.

Priyanka Dubey

Priyanka Dubey (Querist)
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18 July 2011 2009-2010 - sold shop for 85 lacs and capital gain was 63 lacs.
invested in Capital gain account 63 lacs and in HDIL - 22lacs and this was reversed in 2011 feb coz of sum issue.

2010-2011
Land sold for 75 lacs and capital gain 74 lacs. this amount also invested in the residential house property.
Amount invested for theresidential house property is 1.50crore

so can i take exmption of capital gain under sec 54F for both the sale of property i.e shop sold in 2009-10 and land sold in 2010-2011

Kindly suggest

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 July 2011 You have confused about 22 lacs.

Dates are very much important. If you have not invested within 6 months or deposited is separate capital gains account then your case will be different.

Kindly provide the actual dates of transaction with amount and similarly the dated f investment with amount.

Is is the same house in which you have invested 1.50lacs?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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19 July 2011 1. Any investment made under section 54EC is a new asset.

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2. On withdrawal before 3 years from the date of the transfer (or taking loan against the new asset), the exemption availed U/s 54EC will be withdrawn and it will be deemed as income by way of LTCG of the year of withdrawal.

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3. The nature of capital gain is LTCG-
and in my view exemption U/s Section 54F can be availed by investing the whole amount withdrawn against the bonds.

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4. When the Capital Gain is deemed as Long Term Capital Gain then it can be concluded that the asset transferred is also deemed as long term capital asset.

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5. S. 54F can exempt any LT capital gain except the capital gain arising on residential house and on the basis of above discussion I am of the view that
you can get exemption U/s 54F.

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