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Capital Gain

Tax queries 882 views 4 replies

R.Suresh

Sr. Executive

394 Points Posted on 27 May 2009

My friend purchased one plot for Rs 8 lakh for year 2004 & he sold on middle of the year 2008 for Rs. 30 lakh and he invested roughly sum amount in Capital gain tax scehme with bank.

Now my question is my friend is going to avoid the tax from CG..

Kindly give me the solution for the above query.

thanks in Advance for replies.

Replies (4)

Aditya Jain

Final (New) November 2011

763 Points Posted on 27 May 2009

obviously he would get a deduction of amount invested out of capital gains if the investment is covered u/s 54 .

CA Manish K Dhoot

CA B. Com NCFM CPCM

5015 Points Posted on 27 May 2009

he can get deduction u/s 54 F if the total sale consideration is used for purchasing a residential house property with in 3 yrs from the date of sale.

if he use partial amt then deduction will be allowed partial. such new house should not be sold with in 3 yrs of purchase.

PRANAV MISHRA

CA Final student

573 Points Posted on 27 May 2009

Depositing an amount in Capital Gains Scheme is not for avoiding tax from CG.It is earmarking that sum for being utilised for investment in specified capital assests.If the individual fails to make required investment within time the amount deposited in the scheme shall be taxed as CG.