Capital Gains Query

This query is : Resolved

Krishna Mohan (Querist)
Follow

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.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

17 December 2010 Stamp duty value is sale consideration.

Yes She can claim deduction u/s 54.

Message likes : 1 times

sivasankar

sivasankar (Expert)
Follow

17 December 2010 Sir,
I agree with Mr.Bhagat.

Krishna Mohan

Krishna Mohan (Querist)
Follow

17 December 2010 Kindly confirm can she claim Sec.54 on ALL 4 FLATS?

sivasankar

sivasankar (Expert)
Follow

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.

Message likes : 1 times

M Prabhakar Menon

M Prabhakar Menon (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now