Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 DATE OF PURCHASE 14/12/2007
COST OF INDEX 551
DATE OF SALE 14/2/2012
COST OF INDEX 785

INDEXATION FACTOR=785/551=1.424682396

ACTUAL PURCHASE PRICE 525000
INDEXATION FACTOR 1.424682396
INDEX COST OF ACQUISITION 747,958

SALE PRICE 1350000
INDEX COST OF ACQUISITION 747,958
LONG TERM CAPITAL GAIN 602,042

FURTHER I PURCHASE NEW FLAT IN F.Y.2011-12 AGAINST THAT I GIVEN 275000/- BOOKING AMOUNT TO BUILDER & REST OF THE AMOUNT PAID AS PER COMPLETION OF SLAB. POSSESSION TO BE GET AFTER 2.5 YEARS.
SO, HOW MUCH AMOUNT I CAN INVEST IN CAPITAL GAIN SCHEME UNDER SECTION 54 TO SAVE THE TAX & WHEN I FILE THE IT RETURN OF F.Y.2011-12 HOW TRANSACTION TO BE SHOW IN RETURN FORM??

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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02 February 2012 Under Section 54 exemption from Capital gain is allowed for lower of the amount invested and capital gain arrived if residential property is purchased in 2 years or constructed in 3 years.......IF whole amount is not invested upto the last date of filing of return of income of P.Y. in which flat was sold You may get opened Capital Gains Deposit A/c with a Bank and Amount remaining uninvested may be deposited in that account.

In your case assuming that You will invest whole of the capital gain in purchase of flat...then balance amount of Rs. 602042 less Rs. 275000= Rs. 327042 should be deposited in Capital Gain Deposits Scheme A/c and invested upto 3 years from sale.

Further in return you can show full exemption from capital gain under Section 54.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 February 2012 If the capital asset which has been sold is a residential house, you can follow the advise of expert CA Nikhil Jhanwar.
.
You have to show the Capital Gains in Schedule CG, Part II, LTCG,
Item No 3. Other Assets for which option under proviso to section 112(1) not exercised and claim exemption against Item No 3 d of the same.
.

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