I need your Reply..........Pls

This query is : Resolved

Murtaza I Bhagat (Querist)
Follow

19 October 2009 Dear Sir,

Happy New Year

(Property Owner :- Business of Resturant & He is a Proprietor of his Business )
I want to know If I Purchase I House (Property) of Rs.150000/- on 1998-99 & Sale it for 850000/- in 09-10 and Purchase New House (Property)for Rs. 950000/- on 09-10 within 5 Month after sale of Old one.

I want ot Know Can He Show his Old House as Property with Rs.150000/- in Balance Sheet of of 1998-99 onwards to 2009-10 or not ?
If yes What about Difference of Sales Price & Purchase Price of Old ?
Afterthan What about Tax on New Property ? would he has to Pay tax or not ?

Pls tell me Detailed Info...about this matter and I miss Something in it Please add in your Reply

Your Replies are really important to me.

Thanks in Advance

Rajeev

Rajeev (Expert)
Follow

20 October 2009 exemption u/s 54 , no capital gains i guess.

Pls explain the query properly

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
Follow

20 October 2009 1. yes the assesee can show the old asset in his balance sheet from 1998-99 onwards to 2008-09 only not in the year 2009-10 as such property has been sold.

2. The difference between the sale price and indexed cost of acquisition is known as LTCG and also avail exemption u/s 54 of capital gain as the new house also purchased for Rs.950000/=. Thereafter the remaining amount is taxable as LTCG and tax paid on it @ 20%.

3. You have not write whether the such house property has been sold or not.
thats why if sold within a period of 03 years from the date of purchase it is taxable as STCG and its cost of acquisition reduced by the amount of exemption availed u/s 54 earlier.

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