Capital gain u/s 54 cooperative society

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 To qualify investment for construction under section 54, the crucial date is the date of allotment of flat under housing scheme and payment of installments was only a follow-up action and taking possession of the flat is only a formality.

sale Rs.50L - 1/08/2012
purchase Rs.10L - 2002

Investment flats in noida-
1/12/2012 - Rs. 5L paid for booking
Every year instalment of Rs 10L for 5 years.
My Ques is what will be the amount of deduction u/s 54 and in which year??
Reply asap.

Regards
CA

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 July 2012 Section 54(1) talks about the cost of the new asset. However, it starts with the phrase " Subject to the provisions of sub-section 2."
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Sub-section 2 prescribes to keep the unutilised capital gain amount in a specified Capital Gain A/c in any bank or institution.
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It further prescribes the manner of utilisation of such deposit (within 3 years from the date of transfer of the original asset.)
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You can pay 3rd yearly installment a bit earlier to adhere with the provisions of ss2 to get exemption of full capital gains.
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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 it means first of all we have to deposit the amount of capital gain in CGR a/c,

every year we will get the exemption of instalment paid.

rest 4th & 5th insalment ke liye koi exemption nahi milengi???

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 FY2012-13
Sale = 50,00,000
ICOA 10L*785/426 = 18,42,723
____________
LTCG 31,57,277
____________
Exemption u/s 54 - Rs 3157277 deposited in CGRa/c

what will be the exemption & in which year?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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14 July 2012 First of all the capital Gain Calculation will be changed according to the CII of FY 2012-13, which is yet to be notified.
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The LTCG so calculated can be claimed in a single year ( AY 2013-14) as exempted. Yearly exemption can not be claimed.
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Till the end of third year , entire capital gain amount has to be invested.
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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 ok sir . thanks

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 Sir, But if we have booked the flat and start paying instalments, and will sell the house next year,
then will we get exemption in next year for the payment of current instalments??

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