LONG TERM CAPITAL GAIN

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sunil (Querist)
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05 January 2010 Price
Date of pro. Buy(registered)Oct-05 16.5lakh
Date of pro.sell(registered)Aug-09 27 lakh
date of new property book 2008 40 lakh
Payment done 35 lakh
bank loan 30 lakh
property to be registered in Feb-10
LT Capital gain 7.68 lakh
investment done in new property( before property sell) 5 lakh

( WETHER LONG TERM CAPITAL GAIN TAX WILL ARISE EVEN WHEN NEW PROP. HAVE BEEN BOOKED IN ADVANCE IN 2008 AND IF YES THAN WHAT WILL BE THE AMOUNT OF CAPITAL GAIN)
NOTE:- INDEX FOR 2005-6 IS 497
INDEX FOR 2009-20 IS 582

Sales Consideration 27.00

Cost of Acquition= 16.5*582/497 19.32

LTCG 7.68

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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05 January 2010 If you go for Deduction u/s 54, then whole capital gain will be exempt, and

If you go for Deduction u/s 54F then LTCG will be exempt as follow:

= LTCG * Amt. Invested/Net Sale Consideration

= 7.68 * 35/27
= 9.96 Lacs
Therefore, It is also exempt.

So, you can enjoy full exemption under both sections namely 54 & 54F

NOTE: I assumed that you made your investement in Residential Property, because both exemption is available only that kind of property.

Regards!!!
Dinesh S. Adhikari

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