Simple query

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 My Client has purchase Land in January'2011 with partnership firm which share is 33.33% in Rs. 209767/- Now all the Land was Sale in June'2014 and as per my Client share amount is Rs. 343966/-. So now how much capital for the F.Y. 2014-15 is to be paid ??

Kindly calculate for me

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 Some confusion? In whose name the land was purchased?
Assuming that the land is purchased in three names...(partners), and the figures given by you represent 1/3 (33.33%)
long term capital gain = 343,966 - (209,767X 1,024/711) = 343,966 - 302,112 = 41,854

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 What do i do to save tax ?? any exemption ??

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 June 2014, you have sold. So you can HARDLY do anything to save the tax as such.
(Just check if you can avail the exemption u/s 54F, subject to, however the other conditions set out in the said section.)

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 In my case kindly give such information u/s 54F.what will be good for me to do ??

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 Before June 2016 i.e. 2 years from the sale of the capital asset, you need to PURCHASE a flat. (54F also says that as on the date of transfer, you should NOT own any other residential house)

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 How much investment do i need to do to take exemption u/s 54F ??

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 what is your other income? Accordingly you need to take the decision.
Assuming your income falls above taxable limit, you will get a proportionate exemption of the amount you invest in the flat.In your case it is around 12%. (41854 / 343,966)

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 I have a jewellery business and I am in 10% tax slab

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 I think you better pay 20% Capital Gain tax.

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 Investment option is block for me or else ??

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 April 2016 not blocked as such, but you need to invest at least 343,966 in flat, that too before june 2016. In that case paying 20% of 41854 would be in favour of risk reward ratio. isnt it?

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2016 how to pay tax of 20% and I have also 1525/- tax in that year.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

10 April 2016 That is what I want to tell you. You work out your tax liability. Paying income tax seems to be better option in your case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now