Capital Gain Tax

NO You will not be able to avoid CGT

You can save Capital Gains Tax by investing the capital gain of Rs. 10.00 lacs in Residential House Property  (S 54) or by investing in Capital Gains Bonds (S 54EC) .

 the capital gains arising from transfer of a residential house will be exempted by only investing the amount in residential propery only or in electricity bonds plz refer sec 54 & 54EC in income tax act 1961

Sir

my clients gained capital gain  of Rs. 100.00 lacs on transfer of shares of a pvt. Ltd. company. As he was key emplyoee and also having 1% shares of the company. As per agreement 80% consideration was received by him in the financial year 2008-09. Remaining 20% was payable only if he continues in service of another company of same group. He remained service for next year and balance 20% consideration was received by him in the financiay year 2009-10. He paid tax/ made the tax planning accordingly.

His case is under scuritiny U/s. 143(3) for the financial year 2008-09. Can  the Assistanct commissioner add 20% remuneration ( Rs. 20.00 Lacs) in the year 2008-09 on accrual basis. However the consideration was conditional and the same fact exists in the written agreement made between the company and employee.

Please do me guide as the case is fixed for hearing in next month.

Regards.

M.K.Chura. FCA

as the remuneration was against shares held only, the amount detained by company was in his "receivable account" reason may be different, and the concept of assistant commissioner is right as per laws. 

i agree paras sir

Agree with Paras Bafna sir..........

The Long Term Capital Gains arising from Res. House can be claimed exemption u/s 54 and 54 EC....

Sec 54 - Investment in Residential House(2 yrs for Purchase & 3yrs for Construction)...

Sec 54EC - Investment in Specified Bonds - REC and NHAI within Six Months from the date of Transfer.

I AGREE WITH PARAS SIR..