Claiming long term capital gains tax exemptn u/s 54ec + 54f
This query is : Resolved
24 February 2013
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 for claiming tax exemption:
1)Rs.50,00,000 in NHAI plus REC bonds for exemption u/s 54EC,
2)Rs.35,00,000 in a residential property for exemption u/s 54F.
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.
The following are the investments made for claiming tax exemption:
1)Rs.50,00,000 in NHAI plus REC bonds for exemption u/s 54EC,
2)Rs.35,00,000 in a residential property for exemption u/s 54F.
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.
24 February 2013
1. First Compute Exemption U/s 54F:
9096909x(3500000/11036000)=2885029
2. Exemption U/s 54EC =5000000
3. Total Exempt Capital gain =7885029
4. Taxable capital Gain = 9096909-7885029
= 1211880.
9096909x(3500000/11036000)=2885029
2. Exemption U/s 54EC =5000000
3. Total Exempt Capital gain =7885029
4. Taxable capital Gain = 9096909-7885029
= 1211880.
Message likes :
1 times
25 February 2013
Thanks Mr. Paras Bafna. Hence, the tax payable on Rs. 1211880 is Rs.249647 including 20% tax and 3% cess there-on. Is my computation correct?
With kind regards, Kapil Tiwari
With kind regards, Kapil Tiwari
25 February 2013
You must consider Income under other heads also. In case of having no other income or Total Income excluding capital gains is less than the basic slab limit, the Gap or shortfall may be advantageous.
.
.
Message likes :
1 times
25 February 2013
Mr.Paras Bafna, you have explained very clearly! Many thanks to you, Sir!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- HOUSING LOAN ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- ITR 4 and Bank transactions
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- Carriage Road Act, 2007 read with Carriage by Road Rules, 2011
- TDS AND ITR ISSUE
- Journal entry of busniess expenses
- Cash balance limit and property purchases limit
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
