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Murtaza I Bhagat (Querist)

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)

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

Pls explain the query properly

CA Puneet Jethliya

CA Puneet Jethliya (Expert)

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.

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