Capital Gains Query
This query is : Resolved
Krishna Mohan
(Querist)
16 December 2010
My client enetered into an agreement with developer in 2008.Per the agreement, she got 4 flats and developer got 4 flats.Now, my query is
1)Whether capital gains arises in this case? If so, what could be the sale consideration - cost of constuction by the builder or stamp duty value of the flats sold by builder?
2)If taxable,can she claim deduction u/s 54 for all 4 flats.
1)Whether capital gains arises in this case? If so, what could be the sale consideration - cost of constuction by the builder or stamp duty value of the flats sold by builder?
2)If taxable,can she claim deduction u/s 54 for all 4 flats.
17 December 2010
Stamp duty value is sale consideration.
Yes She can claim deduction u/s 54.
Yes She can claim deduction u/s 54.
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sivasankar
(Expert)
17 December 2010
Sir,
I agree with Mr.Bhagat.
I agree with Mr.Bhagat.
Krishna Mohan
(Querist)
17 December 2010
Kindly confirm can she claim Sec.54 on ALL 4 FLATS?
sivasankar
(Expert)
17 December 2010
Sir,
As per 194 ITR 499 (Mumbai) deduction is available for one house.But in 91 ITD 53 (BANGLORE) you can buy more than one house.
In my opinion the word used in section is residential house property and as per General clauses Act singular includes plural.
Moreover there is no express ban by act like sec 54F to own not more than one house for claiming 54 deduction.
As per 194 ITR 499 (Mumbai) deduction is available for one house.But in 91 ITD 53 (BANGLORE) you can buy more than one house.
In my opinion the word used in section is residential house property and as per General clauses Act singular includes plural.
Moreover there is no express ban by act like sec 54F to own not more than one house for claiming 54 deduction.
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M Prabhakar Menon
(Expert)
18 December 2010
First calculate the cost of the flat sold the sale value of which is as per the sale doc.While arriving at the cost various factors will require careful consideration.
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