How to compute exemption u/s 54f

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K Shah (Querist)

03 July 2013 Assessee purchased two land on the following dates:
1 14.02.1995 cost of land: Rs. 38334
2 31.05.2001 cost of land: Rs. 94110

During A.Y. 2013-14 assessee jointly sold the both land(sale value breakup is not determinable for each land) on 26-02-2013 for Rs.9011111/- & he done investment in House in March for Rs.7857000/-

Kindly guide how to compute capital gain & exemption U/s 54F For claiming maximum benefit...
plz rpl soon.....

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

03 July 2013 Sales Consideration ........ 9011111
Less: Indexed Cost of Acquisition- ....
LAND-1 38334 x 852/259=126103
LAND -2=94110 X 852/426=188220
TOTAL ................................314323
CAPITAL GAINS .......................8696788
LESS: EXEMPT U/S 54F ................7857000
TAXABLE CAPITAL GAIN .................839788
.
THE AMOUNT OF 839788 CAN BE INVESTED IN CAPITAL GAIN BONDS OF NHAI OR REC TO SAVE TAX.
.

Message likes : 2 times

K Shah

K Shah (Querist)

09 July 2013 Thanks you Sir
But I have a question that according to Section 54F,
when sales consideration is more than amount invested in new house we have to compute exemption by this formula

(Amount invested in house * LTCG before for exemption ) / Net Sale Consideration

K Shah

K Shah (Querist)

24 November 2013 Thanks you Sir But I have a question that according to Section 54F, when sales consideration is more than amount invested in new house we have to compute exemption by this formula (Amount invested in house * LTCG before for exemption ) / Net Sale Consideration

Read more at: https://www.caclubindia.com/experts/modify_message.asp?entry_id=656849

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