Query related to saving tax on long term capital gains
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 April 2014
1) Can the sale proceeds of a residential property be invested partly in bonds and partly in purchase of another residential house in order to save tax on long term capital gain.
2) If yes whether the whole of the sale proceeds have to be reinvested.
3) If not then what part of sale proceeds is to be invested to save tax and what about the remaining part. Is it to be kept in savings account and will it be non taxable.
2) If yes whether the whole of the sale proceeds have to be reinvested.
3) If not then what part of sale proceeds is to be invested to save tax and what about the remaining part. Is it to be kept in savings account and will it be non taxable.
Nikhil Kaushik
(Expert)
29 April 2014
1. yes you can invest part in a residential house and part in bonds.
2. the computation will be a bit complicated. while under section 54, you need to invest only the capital gains, whereas under 54EC, you need to invest the consideration received.
So the appropriate way to deal this is to first invest in 54EC. Compute the exemption under 54EC and then invest the remaining capital gains under section 54.
2. the computation will be a bit complicated. while under section 54, you need to invest only the capital gains, whereas under 54EC, you need to invest the consideration received.
So the appropriate way to deal this is to first invest in 54EC. Compute the exemption under 54EC and then invest the remaining capital gains under section 54.
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
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- ARCA LOGIN
- Rectification under processing even after 6 months cpc portal
- Appointment of Auditor By Form ADT-1
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Missed uploading GST Invoice
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
