tax on long term capital gain

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Hashim (Querist)

07 August 2010 Mr A have sold a house in July 2010 which he had purchased in May 2006 and received gain.
(1) Will Mr A have to pay income tax on long term capital gains in the year ending 31.3.2010, if he reinvest in another house before 31.3.2010

(2) if Mr A use this gain for purchasing another house after 31.3.2011, will there be any tax liability in the year ending 31.3.2010.

(3)in how much time span/duration, Mr X can reinvest the capital gain for purchasing another house without any tax liability

CA Sanat Pyne

CA Sanat Pyne (Expert)

07 August 2010 YOUR QUERY HAS ALREADY BEEN SOLVED.

VINOD ARORA

VINOD ARORA (Expert)

07 August 2010 Please dont repeat the same question.

Anyways, reply to your similar question is as below:

1. Exempted if reinvested amount is greater than amount of capital gains, calculated as per method permissible under IT ACt, from sale of property in question.

2. Exempted, as an interim measure, for current AY if he deposit the money in CGAS before due date for filing of return.

3. WIthin 2 years/3years from the date of transfer, he has to purchase/construct another house to finaly avail the exemption. ANy house purchased 1 year before also is allowed to be considered for the purpose.

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