Investment of ltcg

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2015 Whether capital gain on LTCG be deposited in any nationalised bank Fixed deposit to be used later on for construction of house within 3 years from the date of sale. i.e whether Capital Gains Account scheme still relevant:? how does it differ from the general FDs of bank. can someone explain me in this regard. thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 July 2015 It has to be deposited in capital gains scheme only not on FDs. You can get the rate of interest of FD but to claim tax exemption it has to be deposited under this scheme.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2015 To avail LTCG exemption, can the taxpayer invest in partly in 54EC bonds and partly be kept in deposit of bank for use in construction of house & thus avail full exemption LTCG Tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2015 Yes partly in 54EC and partly be kept in capital gains deposit for construction of house.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2015 Sir, whether is there any conditions apply for usage of amount invested now in 54EC bonds after the lock in period as to same has to be used for construction of house etc., Thanks in advance for your timely reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2015 No condition you can use it for any purpose after 3 years.

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2015 Sir, if in case, a immovable property is undervalued say for Rs.18 Lacs whereas its market value / Registration Value is Rs.24 Lakhs) and referred under 45A(1) to District Registrar and has passed a favourable order accepting the valuation for lower value then what is the tax impact in the hands of vendor and purchaser seperately? can you discuss or throw some light in this matter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2015 If registration value and value mentioned in the document is same no tax impact.

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2015 Sir, then you are saying that if the regn. is done for 18 Lakhs (in the above case) with the order of the DR then there is no tax issue at all under the income tax act. what about the Gift under the incoeme tax act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2015 If both the values are the same no gift tax will be attracted.

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