29 June 2012
I and my wife are joint owner of a flat. We are selling this flat @ 46 lacs. Indexed cost is 10.5 lacs & cost of improvement is 3 lacs. We have bought another flat for 23.5 lacs and on that we will take loan of 12 lacs. Now how much we need to invest to save maximum tax. Kindly advise. Thanks
29 June 2012
(Assuming cost of improvement is also INDEXED.) Long terma capital gain is 46 -10.5-3.00=32.50 Exemption u/s 54 is 23.5 leaving a taxable long term capital gain of 9 lakh. Either you can take benefit of 54EC or 54.
29 June 2012
As my wife is a co-owner, can we say that share of her ltcg is invested separately on another flat by her and can we claim exemption on balance ltcg ?
CAclubindia
