Ltcg advise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 I purchase res plot in march 2007 for rs 8-lac
my wife purchase PLOT in march 2006 for rs 7.5 lac
in april 2013 we both exchange plot @?
@circle rate is 30 lack
@market rate is 70 lack
i construct house with rs 15lack in December 2013 will ltcg exempt u/s 54f?
can my wife save ltcg by construct house on exchanged plot in march 2016?
for arranging money for construct above house can my wife save ltcg by selling another lig house allotted to her in 1999?
Kindly advice by above method we both save LTCG /IF THEIR ANY PROBLEM IN TAXATION
SANDEEP GUPTA
sandeepgupta03@yahoo.in
919417701251

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 Dear Sandeep,

First of all, its a very tax inefficient model that you have implemented. Rather, I fail to see any logic of doing this.

1. Assuming you do the exchange @ 30 lakhs, your LTCG should be Rs 15.50 lakhs. However, to claim exemption under 54F, you need to reinvest the whole of the consideration ie Rs 30 lakhs!!!!

2. Your wife shall not be eligible to claim exemption under 54F as she already has a house in her name.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 R SIR
THANK ES FOR YOUR VALUABLE ADVISE
1)I HAVE TO CLEAR THAT U/S 54F A ASSESSEE CAN HAVE NOT MORE THAN ONE HOUSE AS ON DATE OF TRANSFER OF ORIGINAL ASSET.
2)IF I EXCHANGE @70 LAKH(MARKET RATE)ANY COMPLICATION MAY ARRIVE PLEASE GUIDE/ADVICE
SANDEEP KUMAR GUPTA

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 1. yes 54F is not available if you already have one house.

2. to claim exemption under 54F you need to invest the whole of the consideration. So if you exchange at 70 lakhs, you shall have utilize 70 for house construction.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 R SIR
V.V.THANKS
KINDLY GUIDE THE INVESTMENT IN NEW HOUSE IS INCLUDING OF LAND OR NOT FOR CLAIMING 54F
SANDEEP

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 it will include land if you wish to build house on it within three years (so that is the window for you to claim 54F). But if no house is built, you wont be able to claim 54F.

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 SINCEARLY THANKES
ONE THING MAY AGAIN VERIFY THAT TO SATISFIED 54F THE ASSESSEE MUST NOT OWN NOT MORE THAN ONE HOUSE ON THE DATE OF TRANSFER KINDLY CHECK
SANDEEP

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 yes. you are correct

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