Sec 54 capital gains
This query is : Resolved
01 March 2013
Hello Sir
I have say 1st property A.Then i purchased 2nd Property in 2006 with Joint name of Spouse for Rs.0.55Cr.now i m planning to sell my 2nd property for Rs.3.5Cr.Now can u pls help me out with this following queries
1.if i purchase 3rd property then am i eligible for sec54. exemption
2. what is tax liability if i dont purchase new propperty?
3.is ther any otherinvestment benifit wher i can save tax ? REPLY ASAP
Thank u in advance
I have say 1st property A.Then i purchased 2nd Property in 2006 with Joint name of Spouse for Rs.0.55Cr.now i m planning to sell my 2nd property for Rs.3.5Cr.Now can u pls help me out with this following queries
1.if i purchase 3rd property then am i eligible for sec54. exemption
2. what is tax liability if i dont purchase new propperty?
3.is ther any otherinvestment benifit wher i can save tax ? REPLY ASAP
Thank u in advance
01 March 2013
Dear Khyati,
yes the exemption shall be made available to you.
investment in residential property is one of the best tax saving as well capital appreciation avenue. So to save tax on the above transaction by the third property. Remember, the wife of the assessee shall also be liable to LTCG. she also needs to invest this gains made to save tax.
So you again go for joint ownership on 3rd property.
by chance the said exemption is not available to you, the tax payable shall be 20% of the difference between Rs 3.5 cr and the indexed value or 0.55cr.
yes the exemption shall be made available to you.
investment in residential property is one of the best tax saving as well capital appreciation avenue. So to save tax on the above transaction by the third property. Remember, the wife of the assessee shall also be liable to LTCG. she also needs to invest this gains made to save tax.
So you again go for joint ownership on 3rd property.
by chance the said exemption is not available to you, the tax payable shall be 20% of the difference between Rs 3.5 cr and the indexed value or 0.55cr.
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04 March 2013
Thank u Sir ...
04 March 2013
Sir
I had one doubt regarding no. of house property ...as in exemption is not limited to 1 house property na ....
I had one doubt regarding no. of house property ...as in exemption is not limited to 1 house property na ....
04 March 2013
Dear Khyati,
the exemption shall work in this manner,
sale proceeds of one residential house should be invested in another SINGLE house.
In case of joint ownership, each of the owner shall have the right to invest in separate properties in individual name. In any case, no individual shall get exemption for investment made in more than one house, either singly owned or joint).
However, often judiciary has held that two or more houses in the same building can be considered as one property.
the exemption shall work in this manner,
sale proceeds of one residential house should be invested in another SINGLE house.
In case of joint ownership, each of the owner shall have the right to invest in separate properties in individual name. In any case, no individual shall get exemption for investment made in more than one house, either singly owned or joint).
However, often judiciary has held that two or more houses in the same building can be considered as one property.
04 March 2013
Sir my doubt here is that i already have 2 houseproperty now the third one i m planning to sell n purchase the new one so as on date i will be holding 3 HP So exemption cannot be denied on the grounds that i m holding 3 HP...and three HP are not In Same Bldg But in Different areas altogether
04 March 2013
Dear Khyati,
the basis of exemption as provided under Section 54 is based on the investment made in one residential property in a given time frame. It doesn't talk about the earlier ivnestments.
the basis of exemption as provided under Section 54 is based on the investment made in one residential property in a given time frame. It doesn't talk about the earlier ivnestments.
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05 March 2013
Thank u so much sir
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