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Cap gain exempt & taxability

Shri Shri (Professional) (629 Points)

22 January 2013

Kindly help me with the following scenarios on capital gain arising on trf of residential prop

I have recently transferred a residential prop & cap gain arising is 9L

Scenario

1. 54EC : i m contending for exemption under this section. My query

amount to be invested.

If i withdraw the amount within the specified period an d invest in anotehr residential prop will i be eligible for any exemption or it ll lead to tax liability

kindly help aeap

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3 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 23 January 2013

you can either take the exemption u/s 54EC by nivesting the entire CG of 9lakhs in the bonds issued by REC, NHAI before 6months from the date of transfer.

OR you can invest the cg by purhcasing a residential property. if you are unable to invest the Cg in the residential property on or before the due date of filing the retunr then you need to deposit the Cg in Capital Gains Account Scheme of SBI or any other bank & then start utilising the Cg from the scheme as & when requried within 2 years from teh date of trasnfer.

Shri Shri (Professional) (629 Points)
Replied 23 January 2013

WHAT IS THE TAX LIABILITY IF I INVEST THE AMOUNT IN CAP GAIN SCHEME

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 24 January 2013

NIL, provided that you utilize the amount from the CG scheme within 2 years from the date of trasnfer, else it would be taxable @ 20% after lapse of 2yrs.