Capital Gains

• I dont think mere purchase of residential plot will give you deduction under section 54F. You need to purchase a house or construct a house to get the exemption.
• However, your STCL can be adjusted with LTCG.
• As you have not utilised the amount kept in CG account you will have to revise the return to pay tax for the year you sold the asset.

The amont of exemption taken earlier has to be reversed and taxed as capital gain in the previous year when 3 years have been completed i.e. A.Y. 2009-10 in your case.

Dear Pulkit

The entire capital gain that have been expent in  the earlier year will be taxable once teh 3 year period is over, LTGG on securities is exempt u/s 10 (38)

regards

karthi

Dear Sir,

Construction should have been completed within 3 years from the date of sale of plot of land...In the prsent case its December 2009...

Now since that has not happned so the LTCG which was exempted earlier in PY 2006-2007 will be taxable in the PY 2009-2010 (AY 2010-2011)

BUT U  HAVE MENTIONED THAT LOSS OF 44,714 WAS INCURRED IN PY 2008-09, SO IF IT IS CARRIED FORWARD BY FILING RETURN IN DUE COURSE THEN IT CAN BE SETOFF WITH THIS GAIN OTHERWISE IT CANNOT BE SETOFF.

Agree with Friend Karthi, LTCG on securities on which STT stands paid is exempt u/s 10(38) 

Originally posted by : Amir
	Dear Sir, Construction should have been completed within 3 years from the date of sale of plot of land...In the prsent case its December 2009... Now since that has not happned so the LTCG which was exempted earlier in PY 2006-2007 will be taxable in the PY 2009-2010 (AY 2010-2011) BUT U  HAVE MENTIONED THAT LOSS OF 44,714 WAS INCURRED IN PY 2008-09, SO IF IT IS CARRIED FORWARD BY FILING RETURN IN DUE COURSE THEN IT CAN BE SETOFF WITH THIS GAIN OTHERWISE IT CANNOT BE SETOFF. Agree with Friend Karthi, LTCG on securities on which STT stands paid is exempt u/s 10(38)

are u sure that it will be taxable as CG in 2009 - 2010 and not in the original date of sale.