Capital gain
This query is : Resolved
Dinesh Gupta
(Querist)
14 January 2012
Have a Nice day
My client have four son and two residential house before 1981 cost A-42500.00 & B-275800 now sale "A" house Rs.45 lac and invest to residential hosue for son but purchse own name rs.3425800 in 2010 how can I save tax
My client have four son and two residential house before 1981 cost A-42500.00 & B-275800 now sale "A" house Rs.45 lac and invest to residential hosue for son but purchse own name rs.3425800 in 2010 how can I save tax
CA PARAS BAFNA
(Expert)
15 January 2012
1. You have to get the value as on 1.4.1981, in respect of the House A.
2. Suppose, it is valued at Rs.100000/- as on 1.4.1981.
3. Indexed cost = Value as on 1.4.1981x 7.85
Or 785000.
4. The House Purchased by assessee should not be earlier then 1 year , from the date when House A is being transferred. for claiming exemption/ partial exemption.
5. Capital Gains =4500000-785000=3715000
6. Taxable Capital Gain = 3715000-3425800
7. Please note that 3425800/ must have been invested within 1 year before sale of House
A. Otherwise the assessee will have to purchase another residential house.
2. Suppose, it is valued at Rs.100000/- as on 1.4.1981.
3. Indexed cost = Value as on 1.4.1981x 7.85
Or 785000.
4. The House Purchased by assessee should not be earlier then 1 year , from the date when House A is being transferred. for claiming exemption/ partial exemption.
5. Capital Gains =4500000-785000=3715000
6. Taxable Capital Gain = 3715000-3425800
7. Please note that 3425800/ must have been invested within 1 year before sale of House
A. Otherwise the assessee will have to purchase another residential house.
Message likes :
1 times
Prof. Bajaj
(Expert)
15 January 2012
Completely Agree with Bafna Sir.
Also, coming to your query to save tax, you need to invest the balance Rs. 2,89,200 in capital gains bonds like NHAI and REC. This will make the tax liability of your client as zero.
Also, coming to your query to save tax, you need to invest the balance Rs. 2,89,200 in capital gains bonds like NHAI and REC. This will make the tax liability of your client as zero.
Message likes :
1 times
Dinesh Gupta
(Querist)
15 January 2012
Can I Invest for Commercial building rs 780,000/- (Shop) for save tax from sale of Residencial House. How ? pls exmaple as above
CA PARAS BAFNA
(Expert)
15 January 2012
Against comm. property you will not get exemption. Better, you purchase bonds as suggested by Prof. Bajaj.
Please also confirm at your end that the time difference between the 2 transactions does not exceed 1 year.
Please also confirm at your end that the time difference between the 2 transactions does not exceed 1 year.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
