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Capital gain query

Stupid Doglover ( ) (25 Points)

24 January 2013

Respected Board Members

I have a query regarding capital gain account scheme

the details are as follows:-

Purchase price 45000

sale price 500000

indexed cost of aquistion 45000*785/305 =115819

Capital Gain- 500000-115819= 384181

Now the query is what amount is to be invested in capital gain account scheme the whole 500000 or only the capital gain of 384181 ..

Reply ASAP

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6 Replies

P A N K A J (CA FINAL) (740 Points)
Replied 24 January 2013

Amount is to be invested depends upon thr deduction you are claiming... for 54 you have to deposit cg amt. and for 54f you have to deposit sv..

Stupid Doglover ( ) (25 Points)
Replied 24 January 2013

Originally posted by : P A N K A J
	Amount is to be invested depends upon thr deduction you are claiming... for 54 you have to deposit cg amt. and for 54f you have to deposit sv..

i hv clearly mentioned it as "capital gain account scheme" so it means im looking to save tax under sec 54f

%$ anil ....article trainee (help ever fnd forever) (204 Points)
Replied 24 January 2013

hello sir thats all very clear if u mention the yaers of acquiring nd transferring ...because yrs are basis for exemption nd treating them as longterm r short term....

Natesh Navada (Chartered Accountant) (149 Points)
Replied 24 January 2013

Parimel (Administration) (41 Points)
Replied 24 January 2013

Mr. Natesh is not right. Deduction u/s 54F is applicable only when a long term capital asset other than a residential house is sold and the proceeds invested in a residential house. Also, Mr. Stupid doglover (strange name for such a academic site) capital gains account scheme is applicable for both ; section 54 and section 54F.