Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 LAND “A” WAS PURCHASED IN 2003 AND SOLD IN 2009, IN LIEU OF THE SAME ANOTHER LAND “B” WAS PURCHASED WITHIN 1 MONTH FROM THE DATE OF SALE.
HE ALREADY HAS ANOTHER BUILT UP HOUSE “C” IN HIS POSSESSION.
DOES ANY LONG-TERM CAPITAL GAIN TAX ARISE IN THE ABOVE NOTED CASE.
IF EXEMPT OR TAXABLE, PLZ QUOTE THE RELEVANT SECTION AS PER I.T ACT,1961.

Hari Beldona

Hari Beldona (Expert)
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02 December 2011 Is it agricultural land ?

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 No, its not an Agricultural Land

Hari Beldona

Hari Beldona (Expert)
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02 December 2011 It is Long Term Capital Gain, taxable
subject to indexation of cost of acquisition of the land.

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2011 Sir, but the amt of sale proceeds have been invested in a new property and so the LTCG becomes NIL

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 December 2011 In the Query the new asset purchased is Land B.
.
Investment in Residential House Property could make the assessee entitled for exemption from Capital Gain U/s 54F.
Since, Land B is a property, but not a Residential Property, the assessee is liable to pay Capital gains Tax.

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2011 Sir, Land "A" is also Residential & Land "B" is also Residential.
Plz guide on Cap. Gain Tax Liability (if any)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 Residential Property means Residential House Property. On sale of plot if another plot is purchased, exemption is not available.
.
If you have purchased the plot and constructed house there upon, eligibility of
exemption was there.

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