Capital gain (part-2) - revision

vipul jain (EFFORTS NEVER FAIL) (2894 Points)

22 September 2011  

FAST TRACK --- CAPITAL GAIN (PART-2)

REVISION TIME

 

 EXEMPTIONS FROM CG AVAILABLE IN RESPECT OF ALL ASSETS OTHER THAN INDUSTRIAL UNDERTAKINGS

PROVISIONS PROFIT ON SALE TO PROPERTY USED FOR RESIDENCE [ SEC.54 ] CAPITAL GAINS ON TRANSFER OF AGRICULTURAL LAND [ SEC.54B ] INVESTMENT IN CERTAIN BONDS [ SEC. 54EC ] CAPITAL GAINS ON TRANSFER OF ANY CAPITAL ASSETS EXCEPT RESIDENTIAL HOUSE [ SEC.54F ]
1. Assessee Individual / HUF Individual Any Person Individual / HUF
2. Asset Transfered RHP Urban Agricultural Land used for agricultural purpose by him or by his parents for 2 years immediately prioe to date of transfer. Any Capital Assets

Any Capital Assets (other than RHP)

Imp. Note :- Exemption is not available if assessee -

  • owns more than 1 RHP(other than new) on DOT of original Assest; or
  • purchase a RHP, other than new asses, within 1 year from DOT of original asset.
3. Nature of Asset  Long term Short / Long term Long term Long term
4. New Asset to be purchased / constructed RHP Agricultural Land ( urban or rural )

Notified Bonds (Redeemable after 3 years) issued by :-

  • NHAI
  • RECL


 RHP
5. Time limit for purchased / constructed 

Purchase :-with in a period of 1 year before or 2 years after, FROM  DATE OF TRANSFER 

Construction :-with in a period of  3 years FROM DATE OF TRANSFER 




 Purchase :-with in  2 years  FROM  THE DATE OF TRANSFER 

 With in 6 months FROM  THE DATE OF TRANSFER 

Purchase :-with in a period of 1 year before or 2 years after, FROM  DATE OF TRANSFER 

Construction:-with in a period of  3 years FROM DATE OF TRANSFER 
6. Deposit Scheme Applicable Applicable Not Applicable Applicable
7. Amount of Exemption

Minimum of the following :-

  • Investment in New Assets
  • Capital Gains

Minimum of the following :-

  • Investment in New Assets
  • Capital Gains

Minimum of the following :-

  • Investment in New Assets
  • Capital Gains

Imp. Note :-

Maximum Exemption limit  being Rs. 50 lakhs in a F.Y

 [LTCg*Amount invested in new assets] / Net consideration
8. Exemption will be withdrawn on- Transfer of new asset within 3 years from its purchase / construction Transfer of new asset within 3 years from its purchase Transfer of new asset, conversion thereof in money or taking loan or advance on its security within 3 years from date of its acquisition.
  • Assessee purchases within 2 years or constructs within 3 years from DOT of original assets, a RHP other than new house; or
  • Transfer of new asset within 3 years from its purchase / construction 
10. Taxability on Withdrawal Exemption claimed earlier shall be reduced from the COA of new assets. Exemption claimed earlier shall be reduced from the COA of new assets. Exempted CG will be taxable as LTCG in P.Y. in which such transfer / conversion takes place.

Exempted CG will be taxable as LTCG in P.Y.  in which :-

  • anothe RHP is purchased or constructed; or
  • new asset is transfered


 

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