Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 X had sold a flat in A.Y 08-09.he had capital gain of Rs 80000. This amount was deposited in a Capital gain account. He neither used it nor has withdrawn it from the account.For A.Y 2011-12 he did not had any income.Can he claim 80000 as exempt income now.

CA JATIN TALREJA

CA JATIN TALREJA (Expert)
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21 November 2013 The Long term capital gains relates to AY 2008-09. Since the the long term not utilised fully within the time period u/s 54 it will be taxable as LTCG of the PY in which 3 years expires from the date of transfer of original asset , in your case it being AY 2011-12.no exemption is available

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 SIR,
Agreed with our explanation, but
he does not has any income in 11-12 .so whether sect 112 is applicable for claiming exemption as his income in that a.y is less than the basic tax slab rate.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 Dear Pradeep,

you are correct. the assessee wont have any tax liability in this case. capital gains deemed under Section 54 etc is not a special income. hence taxability shall arise only if the exemption limit is breached.

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