capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2010 the party has a ancestral property which was sold on 2010-11 A.Y it was given as gift by their grand father on 2001 the party was Muslims so they can not come under HUF so how to use that money for exemption of capital gains his grand father acquired on 1935 for 6000/- now they sold for 9400000/-

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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04 November 2010 This is a Long Term Capital gain LTCG as the holding period is more than 36 months.
Take the value of the property as on 01.04.1981 from the government or Rs.6000, being the cost of property to the previous owner whichever is beneficial (higher amount) that would be the notional value of cost of the property.
After indexation benefit deduct this amount from Net sales proceeds (Direct expences incurred in sale of property only -this is net sale amount)
You can claim the exemption U/s 54 or 54F of the Income Tax Act,1961

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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04 November 2010 Excelent reply, I am fully agree with the reply.

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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05 November 2010 AGREED WITH MADHUSUDAN BUT PARTY CAN ALSO AVAIL THE EXEMPTION U/S 54 EC

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