Claiming exemptn. of long term cap.gains tax u/s 54ec+54f

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This query is : Resolved

Kapil Tiwari (Querist)

24 October 2012 A vacant plot of land was sold for a net sale consideration of Rs.1,10,36,000/-. The fair market value, after indexation, of the land, as on 01/04/1981, was Rs.19,39,091/-. Hence, Long Term Capital Gain was Rs.90,96,909/-.

The following are the investments made and proposed to be made for claiming tax exemption:
1)Rs.50,00,000 in NHAI plus REC bonds for exemption u/s 54EC(now, investment already made),
2)Rs.60,36,000 in a residential property for exemption u/s 54F(proposed to be made)

Please advise:
a)computation of the total tax exemptions that can be availed,
b)total Long Term Capital Gains Tax payable after considering the exemptions.

Anand Modi

Anand Modi (Expert)

24 October 2012 For Investment in NHAI & REC you would get full deduction and for 54F see below

90,96,909/1,10,36,000*100 = 82.4294%

Hence Amt to be invested =
6036000* 82.4294% = 49,75,439.

Total Amount of Exemption = 4575439+5000000
= 95,75,439
Hence Long Term Cap. Gain is NIL

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Kapil Tiwari

Kapil Tiwari (Querist)

24 October 2012 Dear Arvindji,
Total Amount of Exemption = 4975439+5000000
=99,75,439.
I think 95,75,439 is a typographical error. Kindly advise.

However, Long Term Capital Gains Tax will still be nil. Kindly clarify.

Kind Regards/Kapil Tiwari