Capital gain exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 If an individual sells a residential house property n got a capital receipts of rs one crore & the assesse invests rs.35 lacs out of dat amount in purchasing new house property..
So now for remaining 65 lacs amount the assese also wants to purchase another new house property.so if he investd whole capital receipts of rs one crore in two properties.
Wats the tax planing under said exemption?? should he can get the benefit for both houses??

U S Sharma

U S Sharma (Expert)
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11 July 2011 the benefit is restricted to ONE House property acquisition.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 July 2011 As per the provisions of Income Tax Act you can take the benefit of investment of Capital Gains in One House.

You are not clear about when you purchased the house which was sold. If you give the date of purchase and the amount it can be advised how much capital gain you have derived. Suppose you purchased the house for 50 lacs about 10 years back and now you are getting 1 cr. then apparently your capital gain is 50 lacs but in fact indexation benefit for 10 years is to be deducted from 50 lacs to arrive at the capital gain which might come to only 35 lacs. If it is so then the things will change.

If your figures are correct and after indexation then you will be charged for capital gains tax for 65 lacs.

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