Tds on capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2013 I have purchased a residential plot in May 1997 for Rs.12500 +2500(registry charges) in Indore.

In March 2013 the same plot was sold for Rs.15.10 lakhs. Amount recieved( Rs15.10 lakhs ) was reinvested by purchasing a new residential plot.

Please advise me tax liability is payable on capital gain or not? If any what would be the amount of tax liability, interest and penalty .And also suggest how to minimise the tax liability

CA Pallav Singhania

CA Pallav Singhania (Expert)
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04 September 2013 Sale Consideration 15,10,000
Less:
Cost of Acquisition
15000 X 852/331 = 38,610

LTCG 14,71,390

LTCG TAX @ 20 percent on 1471390

i.e 2,94,278

To avoid CG tax you can invest 1471390 on purchase of another House Property U/S 54,
Or you can deposit the same under Capital Gain scheme Account... and Can use it for the Construction of HP...

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2013 Thank You Sir for your advise.

Please also suggest me whether the same amount can be invested in construction of first floor of the house which is registered in my husband's name & the time limit upto which this amount should be invested to avoid tax liability.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2013 Thank You Sir for your advise. Please also suggest me whether the same amount can be invested in construction of first floor of the house which is registered in my husband's name & the time limit upto which this amount should be invested to avoid tax liability.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 September 2013 Exemption is also if the Capital Gains from the sale of a single residential property are invested in more than 1 residential property..

Expenditure incurred in making the house habitable after its purchase also qualify for deduction under Section 54 or 54F.

For more details

https://www.thehindubusinessline.com/industry-and-economy/taxation-and-accounts/capital-gains-more-than-one-house-can-be-bought/article1156259.ece

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2014 Thank U Sir for your kind cooperation,

I seek your further advise on the subject matter to avoid payment of TDS on sale of housing plot.

As advised by U I have decided to buy a HP but since I am not having sufficient funds so I have decided to take loan in my husband's name. Please advise-

1)Property should be bought in single/ joint name.

2)Can I save tax liability if property is purchased in joint name.

3)Income tax benefit (Principal/Interest)on housing loan can be availed by my husband or not if loan is taken in my husband's name to buy the property.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 https://docs.google.com/document/d/1QiFCKkqfiM1t6trXdCklVG6bQWzKLHGf7sg1xCXTd3k/edit?usp=sharing

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