Capital gain

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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)

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)

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)

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)

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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