Long Term Capital Gain

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This query is : Resolved

Ghuliani (Querist)

10 May 2009 I had sold a plot of land in August 2008 resultinh into some amount of Long Term Capital Gain after the benefit of indexation.
Since I am posted to a place other than my native place and due to professional pre occupation I just kept the major amount of consideration (nearly 90%) in FDR for one year. Please advise me how I can save income Tax on this money.
Also please specifically consider a case where if I deposit the full money upfront with a builder for the purpose of acquiring a new house/flat now whether this amount of deposit will be tax exempt or not.
If yes what will be the status if Builder have no ready flat and propose to offer posession within one year from Aug 2008 and within two year from Aug 2008- The date of actual capital gain?
Direct Response to "ghuliani@gmail.com" will also be welcomed
Regards
Ghuliani GK

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

10 May 2009 1.If you have deposited the money in FD A/c, you would not be entitled for exemption.
2.If the money is paid to the builder as upfront payment, you would be entitled for exemption but ensure that that purchase transaction is completed within two years of the date of capital gains.

Parveen Bansal

Parveen Bansal (Expert)

11 May 2009 1. Net consideration NOT capital gain should be invested and depoitsed with builder to avila exemptionunders ection 54F.

2. Uninvetsted consideration should be depoisted with bank under Capital Gains Account Scheme before due date of filing tax return.

3. Further payments to builder can be made from depoistde amount.

4. Since posseession is avialble within 2 yaers from date of transfer, you will be eligible for capital gain exemption.

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