Capital gain & exemption

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This query is : Resolved

GJ Consultancy (Querist)

22 March 2018 My client wants to sells his one residential house in this month (march-18) and wants to buy new one in next year (after april-18), as I know that LTCG can be deposited in capital gain assets account to get an exemption but he already owns more than one property.

So is it advisable to firstly gift this house to his spouse (wife, by completing gift deed) and then his wife sell this one and deposit LTCG in Capital gain assets account (to claim exemption in this year) and buy new house in next year ??
Please advise me....

And is any other opinion on this ???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 March 2018 Selling one house this year and buying another one house in next year is no problems irrespective of number of houses held. If in next year house is not purchased before filing the return deposit in capital gains account.

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GJ Consultancy

GJ Consultancy (Querist)

22 March 2018 Thanks for your fast reply, but i am little bit confused , can you explain which section will be affected for claiming exemption ( if amount of LTCG is not to be deposited within july-18 )

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 March 2018 Section 54 exemption buying another one house.

GJ Consultancy

GJ Consultancy (Querist)

23 March 2018 thank you very much sir,,,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 March 2018 Welcome........

GJ Consultancy

GJ Consultancy (Querist)

29 June 2018 Sorry for raising same issue, but i am still confused, as you suggest on reply dated 22.03.2018, amount can be deposited in capital gain account, but which amount is to be deposited ? i mean amount of capital gain or whole sale proceeds ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 June 2018 Amount of capital gains has to be invested

GJ Consultancy

GJ Consultancy (Querist)

29 June 2018 Thank you very much sir for quick reply, but one of my client have capital gain on sale of residential land amounting 223288 and he deposited 250000 in capital gain account as per my recommendation (suggested by you) but still my software shows taxable LTCG 143160. so what can i do ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 June 2018 For land entire net consideration has to be deposited to claim exemption u/s 54F.

GJ Consultancy

GJ Consultancy (Querist)

29 June 2018 ok, thanks sir for your support, and thanks to CA club also.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 June 2018 Welcome................

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