Long term capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2015 Dear members,Hi

I have some queries on Long Capital gain tax on immovable property the details are as follows-

1) We had purchased residential plot in City A in 2001 (Jointly owned by three brothers).
2) Now we would like to sell the same.
3) I am owning the Flat in city B.
4) Now I am planning buy another residential plot in city A for construction of House for my own stay.( plot is marked & finalized for buying but "seller" demanding settlement to be done within time limit)
5) I may buy from the consideration received from selling of above plot (if sold within time limit)or manage from other way (if it could not sold within the time limit)
Now my queries -

a) can I deposit the amount in long Term capital gain under CGA scheme in bank & use for construction of house on the purchased plot"in city "Ä" ? if yes , period -within two years or three years ?

b) whether I am eligible for such exemption when I am having flat in another city "B

c) Only the capital gain amount needs to be deposited in bank? or full consideration?

d) my second brother is staying in City "C" and would like to purchase flat in City C (with the consideration of selling of plot) , whereas is having already flat in City B - whether he can also claim exemption for long term capital gain tax under Section 54.

e) my third brother is staying in City B in his own flat. whether he can also claim exemption for long term capital gain tax under Section 54 & does need to keep money in CGAS , if he wish to buy another property within two years.

All experts are requested to help me in this regard.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 February 2015 The exemption for capital gain will be available for all of you u/s 54F. The construction has to be completed within 3 years and entire sale consideration has to be utilized for claiming exemption. All are already having only one house exemption is available to buy or construct one more house.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2015 thank you very much , sir.

Kindly guide me , whether,I need to keep full consideration amount in CGAS a/c or only the Capital gain amount in bank a/c ?

If only capital gain amount, then can I use balance amount for other purposes ?

Thanx

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 February 2015 Full consideration has to be kept in CGAS.

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