Exemption of capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2012 NET CONSIDERATION HERE IS FULL VALUE OF CONSIDERATION

THE ASSESSEE POSSESS ALREADY ONE HOUSE PROPERTY AND ALSO ONE PLOT. NOW IN F.Y 2011-12, HE SOLD PLOT DUE TO FULFILL SOME PERSONAL DUTIES. NOW HE WANT TO AVOID CAPITAL GAINS TAX. HOW TO AVOID HE GOT NET CONSIDERATION 10 LAKHS AND CAPITAL GAINS AFTER INDEXATION 550000 @ 20% TAX =1.28 LAKHS

SO KINDLY GIVE SUGGESTIONS

OPTION 1: ANY NEW LAND PURCHASED AND CONSTRUCT THEREON(ONLY PART INVESTMENT) FROM NET CONSIDERATION CAN CLAIM

OPTION 2: EXISITING HOUSE CONSTRUCTION FOR 1ST FLOOR CAN CLAIM EXEMPTION

OR ANY OTHER OPTION

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 March 2012 OPTION 1-
FULL EXEMPTION CAN BE CLAIMED U/S 54F IF RS.
10.00 LAKH OR MORE IS BEING INVESTED FOR LAND AND CONSTRUCTION THEREON. IF HE INVESTS LESSER THAN 10.00 LAC CAPITAL GAIN EXEMPTION CAN BE CLAIMED IN THE PROPORTION OF AMOUNT INVESTED TO 10.00 LAC.
.
OPTION2.
--------
THIS CAN NOT BE SAID AS CONSTRUCTION OF NEW HOUSE. EXEMPTION CAN NOT BE CLAIMED.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok