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....
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.
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 )
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 ??
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 ??
CAclubindia
