Income from capital gain

This query is : Resolved

c venkata subramanian (Querist)
Follow

30 June 2015 This is a query regarding computing capital gain on sale of immovable property the previous year to the AY 2015-16, which was brought by the ancestor for which the purchase cost is not known, so i need to know the fair market value as on 1-4-1981 in mumbai for computing the capital gain for the sale made?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

30 June 2015 Yes, you have to get it valued from an approved valuer.

c venkata subramanian

c venkata subramanian (Querist)
Follow

01 July 2015 From which valuer do i need to get it valued, as one of the shareholder to the property is staying in bangalore can the value determined by the valuer in bangalore taking into consideration or i have to take the value given by the valuer from mumbai to be taken into consideration as the sold property is in mumbai?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

01 July 2015 Any Govt. recognized valuer will do. Even if the property is in Mumbai it is not necessary the valuer has to be from Mumbai. Valuer can be chosen as per convenience but must be Govt. approved.

c venkata subramanian

c venkata subramanian (Querist)
Follow

01 July 2015 Sir, After the computation of LTCG there is amount left on which tax is to be paid, my doubt is that can the remaining amount be invested according to sec 54EC in REC bond now i.e., for the sale made in FY 2014-15 can the investment be made in FY 2015-16?

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
Follow

01 July 2015 Yes, but such investment must be made within 6 months from the date of sale of the property. If no bond issue is available near the date of expiry of 6 months' period then bonds should be applied for as soon as they become available. Though this has not been provided in the Income-tax Act the courts have held that the taxpayer cannot be expected to apply for the bonds if the bonds were not available near the expiry of 6 months.

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