Foregoing of LTCG exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2010 Dear Experts,

I had claimed exemption under under 54F since I sold my plot and purchased a residential house. I could not retain my purchased house for 3 years and sold it within 2 years thereby violating one of the conditions of sec under which I claimed exemption. Since now I have to forego my earlier exemption claimed how do I deposit tax. Can I pay in march 2011 or do I have to pay as advance tax in Sept 10, Dec 10 and Mar 11. I understand that i will have to pay besides LTCG exemption STCG also for new sale. Please advise.

CA.Mini

CA.Mini (Expert)
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13 September 2010 u become liable to pay tax on the ltcg (exempted amount)at time of sale of the new house.pay advance tax in Sept 2010 on the accrued gain .

VINOD ARORA

VINOD ARORA (Expert)
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14 September 2010 Now you will have to pay tax as income from STCG which shall be computed as under:

STCG=Sale Consideration- (cost of aquisition- LTCG exemption availaed last)

Accordingly, you have to adhere norms for advance payment of tax.

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