Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 NRI has sold an Agriculture land purchased in 2001 at 13,85,000 in 29,91,000 in July 2011.

I would like to know the amount of Capital Gain and how to save tax with the 54 section in Income tax, what would be your answer if its Urban land.

Being an NRI, how he can repatriate the amount?

Expecting practical answer.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 Computation of Capital Gain

Sale Consideration 29,91,000
Less: Indexed Cost of Acquisition
13,85,000*CII of FY 11-12/CII of FY 01-02

The balance shall be LTCG.

For claiming exemption u/s 54, the assessee has to deposit the above CAPITAL GAIN in a residential property.

He can either purchase a house 1 year before or 2 years after the date of transfer, or
construct a house within 3 years from the date of transfer.

However, if he is unable to invest the amount before the due date of filing the return, he has to deposit the amount in a capital gain account with a nationalised bank.

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2012 Agree with Expert,

NRI can repatriate the amount after dissolving the tax liability in India.

I dont know exactly the sub section in Section 54 but Tax exemption can be claimed.

Agriculture land is exempt from Capital Gain Tax. Urban land is liable to tax.

Siddharthaji, kindly clarify about the sub section 54 also i hv question, whether 2 residential property can be purchased or not???

Thanks
Mihir Doshi

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 March 2012 Section 54 is the section, there is no sub section.

Only 1 residential house can be purchased/constructed.

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