Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2015 To save tax on long term capital gain (3 crore) arising from sell of a property, I bought another property for the same amount (Rs. 3 Crore) and paid the seller by cheques. Agreement to sale was also signed for 3 crore. However the stamp duty and registration charges were paid on 1 Cr only. Can I claim benefit U/s 54 on the entire 3 Cr?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 March 2015 reg and stamp duty are not imp what is important is how much u invested in new property from the sale of old property?

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CA Jayesh Karia

CA Jayesh Karia (Expert)
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13 March 2015 Mr. Tushar,

They have just signed agreement to sale but if in the sale deed they have not used stamp paper of appropriate value then they have to alter their sale deed in order to claim exmption.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2015 Thanks for the valuable advice. Mr. Karia - the authority will charge stamp duty and reg. fees only at the government/circle rate which will be less than actual/market price i.e. 3 cr. can we still get benefit on the entire 3 cr?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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13 March 2015 exemption for capital gain depends on how much is reinvested from sale of prev capital asset.

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CA Jayesh Karia

CA Jayesh Karia (Expert)
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13 March 2015 Yes, Tushar U are right but for proving the transaction legally you have to give sale deed and that must be appropriately prepared.

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