Section 54f
This query is : Resolved
Soumendra Padhi
(Querist)
17 April 2012
What will be my capital gain tax exemption, if do have the net sale consideration from a capital asset of Rs.40,00,000/, but I have taken a new house spending Rs.35,00,000/?
I am sure the total of my capital gain(Rs.5,00,000/) received from the sale will not be exempted.
Whether I will be able to claim deduction under section 54F or not ?
I am sure the total of my capital gain(Rs.5,00,000/) received from the sale will not be exempted.
Whether I will be able to claim deduction under section 54F or not ?
CA. Sameer Kashikar
(Expert)
18 April 2012
Dear Soumendra,
Since your net consideration for purchasing anew house is less than net consideration received
Praportionate capital gains will qualify for deduction U/s 54F
i.e. 3500000/4000000*500000=437500 will be available dor deduction balance taxable
Since your net consideration for purchasing anew house is less than net consideration received
Praportionate capital gains will qualify for deduction U/s 54F
i.e. 3500000/4000000*500000=437500 will be available dor deduction balance taxable
Ravi Jhamb
(Expert)
18 April 2012
Caculation of Capital Gain
Net Consideration:- XXXXX
Less:- Exp. for Transfer XXXXX
Less:- Indexing Cost XXXX
Capital Gain XXXX
You did not do index and wrote full information.
Net Consideration:- XXXXX
Less:- Exp. for Transfer XXXXX
Less:- Indexing Cost XXXX
Capital Gain XXXX
You did not do index and wrote full information.
20 April 2012
54F says gross consideration to be invested and not the capital gain. As you have not invested the entire gross receipt on sale of the property then the experts are correct and accordingly you will be liable for capital gains.
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