Captial Gain

Tax queries 725 views 2 replies

Gupta B Gullapudi

PRACTICING CA

42 Points Joined January 2008

Dear team,
here is a query.
1. One of my client has acquired by way of gift a land along with old building in 2003 for 34,00,000.

2. Infact the land was purchased in the year 1962 for Rs. 22000/-

3. Now, would like to go for development of apartment on the following terms.

a)Receiving a non refundable deposit of Rs. 2500000 from builder.
b) Receiving in kind of 4 apartments worth Rs. 4500000

now, my queries:-

1. Is the cost 34,00,000 should be taken or Rs. 22000/- while calculating capital gains?
2. if 22000/- to be considered then what will be the base index
3. How to calculate the capital gains? i.e., whether the sale consideration can be taken as Rs. 7000000/-(2500000+4500000)
4. Is there any possibility of claiming 54 F

Kindly do clarify and provide case law if any

thanking you in advance

Replies (2)

Jitender

Chartered Accountant

8724 Points Joined May 2007

1 cost shall be the 22000 or FMV as on 1.4.81 , Whichever is higher.

2 base index will be 100.

3 sale consideration will be 70 lacs.

priyanka narale

PCC student

407 Points Joined June 2008

for claiming exemption under 54F one must

invest full value of consideration (70 lacs) in residential house.

exemption available will be proportionate net consideration invested i.e

Capital gains x Amount invested / Net sale consideration

above exemption will b available only when the assessee does not own more than 1 residential house on the date of transfer, exclusive of 1 purchased for claiming exemption i.e the 1 he will buy from the consideration received.