LTCG Exemption Eligibility
This query is : Resolved
Quick Summary
25 January 2020
Hi
We sold a joint property last year which was in the name of my grandfather who expired few years ago. My mother and my uncle were declared legal heirs of the house as my father had expired earlier than my grandfather. From my mother's share of sale proceeds, we are planning to buy land and construct a house. The price of land itself is high and entire share of my mother from sale proceeds will be used. We are planning to take a home loan for constructing house. My question is:
Will my mother be able to take LTCG exemption if we complete construction of house within 3 years of date of sale of old house without depositing any money in capital gains account?
We sold a joint property last year which was in the name of my grandfather who expired few years ago. My mother and my uncle were declared legal heirs of the house as my father had expired earlier than my grandfather. From my mother's share of sale proceeds, we are planning to buy land and construct a house. The price of land itself is high and entire share of my mother from sale proceeds will be used. We are planning to take a home loan for constructing house. My question is:
Will my mother be able to take LTCG exemption if we complete construction of house within 3 years of date of sale of old house without depositing any money in capital gains account?
25 January 2020
You have not deposited the capital gains in the capital gains account before the due date of filing the return hence LTCG exemption not available.
25 January 2020
Sale has happened in September 2019 which FY 19-20 and due date of filing ITR for FY1920 should be 31st July 2020. Can you explain what is the basis of above reply? As per my understanding, I still have time to invest in capital gain bonds under Section 54. C
25 January 2020
Yes you are right you still have the time to invest. You said last year so I have taken it as 1918-19.
25 January 2020
Thank you. Can you clarify my query now? If I use my capital gain amount to buy land and then take home loan to start construction of house before 31st july 2020 but not able to complete construction before 31st July 2020, then can I claim capital gain exemption without buying bonds or depositing any money in Capital gains account?
26 January 2020
In such a case no need to deposit in bonds construction can be completed with borrowing within 3 years.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Purchase of property from NRI
- Query related to CA/CS/CMA Firm
- NRI get transferred fund from his own Indian account to his foreign US account without any approval
- Seeing a huge entry in AIS Purchase of time deposits (SFT-005), what it is for
- CESS not claimed in GSTR3B either in inward supplies or outward supplies for the period Oct2025
- GST APPLICABILITY TO DIAGNOSTIC
- Value of Perquisite Sec.10 (10CC)
- How to pay tds on mhada property
- Income from F&O trading
- Eway bill and e invoice for exempt and nill rated goods
- TDS on Purchase of Property from NRI Seller
- Rejection of application U/s.119(2)(b) by PCIT
- Value of Perquisite Tax Borne by Employer
- Taxability and TDS treatment on Crypto futures
- Suggest proper Tax & TDS applicability on Crypto Futures
- Tax Demand of ₹4,650 for AY 2026-27
- ITR WITH 0 TURNOVER
- Multiple GST under same PAN
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
