Ltcg: saving ltcg buy buying plot and building house on it
This query is : Resolved
28 December 2014
In september 2014 I have incurred a long term capital gain of Rs.2000000 after selling my residential house.
1) I want to buy a plot and then build a house on it. Can I utilize the capital gain amount to do both ie. to buy the plot as well as build the house and claim exemption on LTCG?
2) I have deposited the entire sales consideration in my savings account with SBI. I then opened FDs from the entire amount. However, I have another Rs.2000000 in another bank, which is not related to this sale. Can I utilize this amount to build the house and save LTCG? I mean, do I have use the same money I received from the sale to save LTCG or can I use an equivalent amount from another bank?
1) I want to buy a plot and then build a house on it. Can I utilize the capital gain amount to do both ie. to buy the plot as well as build the house and claim exemption on LTCG?
2) I have deposited the entire sales consideration in my savings account with SBI. I then opened FDs from the entire amount. However, I have another Rs.2000000 in another bank, which is not related to this sale. Can I utilize this amount to build the house and save LTCG? I mean, do I have use the same money I received from the sale to save LTCG or can I use an equivalent amount from another bank?
28 December 2014
1. Yes, cost of plot and construction cost both are eligible for claiming exemption.
2. The stipulation is as regards the amount
of capital gains and not as regards the same money. So, you will be eligible for exemption if you invest Rs 2000000/-. There is no condition like the "same money".
.
2. The stipulation is as regards the amount
of capital gains and not as regards the same money. So, you will be eligible for exemption if you invest Rs 2000000/-. There is no condition like the "same money".
.
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Gift Received from nonblood relative
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Experts need help
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
