Capital gain sec 54 exemption

My uncle sold a property for  around Rs. 44 lakh on 11.04.2012, resulting a capital gain around Rs. 13.5 lakh. He booked a flat with total agreed value of Rs. 44 lakh to claim sec 54 exemption. He filed return for the period claiming exemption, till then Rs. 32 lakh was paid.

As of now he has paid Rs. 34 lakh against such property, but now he did not want to make the balance payment. because he will have to take a loan from the market for around Rs. 14 lakh for making final payment as well as registry cost.

What action should he take now ? (HYe has least interest to keep the property for lock- in period of 3 years)

Please help

Replies (12)

Hello, Neha ji

 

If you sold your new assests within 3 year from the date of purchase then capital gain claimed as exemption(RS 13.5 lakh) shall  be reduced from COST OF ACQUISITION of new assets.

 

Hence your cost of new assets will be reduced by 13.5 lakh and u hv to pay capital gain on such amount.(if you sale before 3 year)

 

Thanks 

 

 

 

But Sir is there any 3 party settlement possible withou any capital gain involved.

Like if I receive Rs 34 lakh back from a third party against that flat, will any capital gain be chargeable?

Rs 13.5 Lakh will be charged to tax (as capital Gain) If u sale New assts before 3 year. . . . It dont matter u take back rs 34 Lakh or not.

But its not registered till now, nor the posession is taken place. So, if its not purchase, how can it be sold?

U had already mention exemption for capital gain in itr for sale of your old assets.hence u cant pull your legs back now..u hv to hold new assets for atleast for 3 Year..other wise tax will be imposed

okay, supposi I apay the tax imposed on me, but will I bea gainst facing short- term capital gain by receiving Rs. 34 lakh from the 3rd party, if the FMV of the flat rises on the date of sale, or it is irrelevant.

okay, suppose I pay the tax imposed on me, but will I bea against facing short- term capital gain by receiving Rs. 34 lakh from the 3rd party, if the FMV of the flat rises on the date of sale, or it is irrelevant?

 

Neha...i think first check out what is the stamp duty value of that assets, u cant sale your assets below stamp duty (other wise stamp duty value will be consider as a sale value for assets) 

 

As per your question i think fmv is irrelevent, but difference in sale consideration and cost of acquisition will charged to short term capital gain (if period is less then 3 year)

 

thanks 

thanks sir, but can part flat be sold? like in this case I have not even paid full amount?

Yes u can sold it in parts.

Thank you very much Sir

My pleasure .

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