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Capital gain query

Roopwant Soni (Chartered Accountants) (32 Points)

11 May 2012

Dear All,

I have sold a flat in FY 2012-13 @ Rs. 32.00 lakh, which I have acquired in 2001 @ Rs. 12.00 Lakh. Can I invest the proceed in construction of house on a plot which is owned by my wife...to get Capital gain exemption. Pl guide and suggest alternate ways to plan capital gain taxes....!!!

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8 Replies

Tejas Jain (Chartered Accountant) (314 Points)
Replied 11 May 2012

Yes you can invest...Just get the new house on your name

1 Like

Saurabh Srivastava (Chartered Accountant) (21 Points)
Replied 11 May 2012

Since the land is owned by your wife. you can not take the exempion.

Tejas Jain (Chartered Accountant) (314 Points)
Replied 11 May 2012

@ Saurabh....If I buy a Land on lease and on that lan I construct House...Will I get Exemption...? Reply with Related Provision of the ACT or CASE Law.

Member (Management) (325 Points)
Replied 11 May 2012

You can consider the land and the building as two seperate assets. In that case, if the cost of construction is more than the capital gains, then there is no CG Tax.

Member (Management) (325 Points)
Replied 11 May 2012

You can consider the land and the building as two seperate assets. In that case, if the cost of construction is more than the capital gains, then there is no CG Tax.

shital (Chartered Accountant ) (67 Points)
Replied 20 May 2012

By considering land and building seperatally, u can take benefit of exemption by investing in under construction building..

hariharan (Student CA Final ) (31 Points)
Replied 09 July 2013

Deposited in the Capital Gain Scheme for 3 year the amount not utlized for 3 years after w/d the amount what is the tax effect and index cost to apply

rajesh verma (accountant) (21 Points)
Replied 13 November 2013

i want to sale a residential plot which have long term capital gain and i want to purchase a new residential plot. please advise i take benifit of capital gain exmption. please reply with section and rule. i not want to construction house on this plot and i have not any plot.