Capital gain- interesting question

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2010 The points are as follows:
1) She owned 2 house property.. out of which she sold of 1 house property on 04/09/2009 the details of which are as follows
Sale value Rs. 10,50,000/- Market value on index 2 is Rs. 11,56,634/-
Date of purchase of that property was 01.12.1995

2) She was having some share of Tata Technologies Ltd.
Date of purchase No. of Shares Price at which it were purchased
15.11.2005 1250shares Rs. 10 per share
03.02.2006 2900shares Rs. 100 per share
All the above shares were sold @ Rs. 196 per share and the net proceeds were Rs. 8,11,286/-

3) She deposited an amount Rs. 1050000/- in a SBI capital gain account on 23.11.2009 and which she has withdrawn it on 13/05/2010 to buy a house property valuing Rs. 56,87,500/-

4) So kindly advice me in the above matter...
I my view the assesee can claim exemption under Sec 54 and also u/s 54f

srinath

srinath (Expert)
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18 July 2010 In the case of sale of house property since the owner has sold it for less than the market value the sale value to be considered u/s 50C would be the market value ie 11,56,634/-. It would be long term capital gain and so the assessee can claim deduction either u/s54 by investing in another house or u/s 54EC by investing in NHAI bonds.

In case of sale opf shares it would be again long term capital gain since it were held for more then 12 months. if it were sold through recognised stock exchange and then STT is paid it would be exempt u/s 10(38). If not tax can be saved either by investing u/s 54F or 54EC

the assessee has rightly withdrawn the amount and there would be no tax implications in the third case

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Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2010 One more question arises that whether the capital gain in two cases can be invested in the new house property in order to claim exemption u/s 54 and at the same time u/s 54F.

CA Punit

CA Punit (Expert)
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19 July 2010 Yes..
54 & 54F can be availed simultaneously,
provided the assessee does not own more than 1 residential house property on the date of sale of shares.
The exemption will be proportionate to net sale consideration invested.

however if STT is paid it would be exempt u/s 10(38) & there'll be no que of investing u/s 54F or 54EC

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Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2010 Yes she owns 1 house property other than the one she has purchased later on.. now wht wud be the answer..

srinath

srinath (Expert)
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20 July 2010 She should not hold more than one house property. therefore owning one hp does not have any implications

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