Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2014 X got a house in gift deed from her inlaws in MARCH 1983. Stamp duty paid 8500 rs at that time. X sold the house in feb-12 for Rs. 36 Lac. But the circle rate of the house was Rs 58 Lacs.
1. What will be the capital gain today as X has not filed any return till date?
2. property Assessment ( value of house Previous & At the time of sale ) will be done by X C.A. or departmental C.A.
3. Tax can be paid in EMI ??

Pls reply fast

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 March 2014 while you may compute tax liability on the basis of consideration you received (36 lakhs), the tax authorities shall consider Rs 58 lakhs as consideration and compute capital gains accordingly.

assessment is done by Income tax officers

you can pay tax as and when you want to...but the interest and penalties keep on adding for delayed tax payments.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2014 Thanks a lot for response.

1.Sir criteria for the interest & penalties are levied on which basis ??
2. how much will be the tax ??
3. how can v calculate from stamp duty paid in gift deed the value of property at that time ???

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2014 Is there any time limit to re invest ????
can X reinvest in any property now ??? & if she will get any benefits of that ??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 March 2014 last date of filing return is 31 March 2014. For interest computation, refer 234A, 234B, 234C. you can claim exemption only if you invest before filing the return. otherwise no exemption can be claimed unless the amounts were parked in Capital gains accounts scheme before 31 July 2012.

For stamp duty value refer to ready reckoner and circle rates published by government.

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 x has puchased a property in joint with her daughter in law. can she claim the whole amount for exemption???

Also if 4 lakhs were invested at house in 1986 & The property value was 1 lakh inn 1981. Will 5 lakh be multiplied by CII or 1 lakh wiill be multiplied & 4 lakh will be added to the value???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 March 2014 well if X has invested the amount on her own, she can claim deducted against the same

1 lakh will be indexed from 1981 to the year in which the house is sold

4 lakhs shall be indexed from 1986 to year in which the house is sold

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Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 sir thanks a lot for your patience.
One last question is

wheather we need to give some proof for improvement expenditures or the declaration is enough?? wat if we do not have bills right now???

can investment be done in only one property. X son has also purchased a property but in his own name with the maximum bank loan. can it be shown for exemption???

Interest on tax will be calculated from mar-12 or jul-12 or any other date???

interest will be simple or compound???

X needs to declare income( LTCG ) every year after filing return or only once in life time???

stamp duty was paid by purchaser, can v also show it in sale expenditures on our behalf???

if the actual market rate is less than circle rate. can it be taken in consideration???

rate at the time of acquisition is fixed or variable acc to construction ????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 March 2014 honest reply, have done any research on your own?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 March 2014 please use this forum as a place to resolve your doubts, not as a replacement to the basic research you should carry out

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