Exemption for long term capital gain

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2013 I had a House Property which was sold, incurring a Capital Gain of Rs.6.95 crores which I reinvested in a residential house property claiming an exemption u/s 54F. My new residential house property has not completed 3 years and I wish to sell the new residential house.

I know as per Sec 54F,if I sell a residential house property capital gain which was earlier exempted will know be liable for tax.

But is there any other way out.

Please Reply.

Its urgent.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 February 2013 There may be a confusion regarding the exemption section. It should be Section 54.
.
If you sell the new house prior to completion of 3 years since you have purchased it, you have to reduce, the Cost of Acquisition of this House by the exempt amount of capital gain.
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You may get advance from the buyer -for the time being and execute the sale documents after completion of 3 years if you are in dire need of funds.
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Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2013 I agree with your facts,

But is there any other way out.

I what to purchase the house property immediately and want the ownership as well is there any other way out.

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