- ISir
My i have sold a property in ay 2016-17 which was purchased in ay 2008-09. Now i have to pay capital gains around to 200000 what should I do to save this tax.
What types of improvement cost can be considered for
Ashish (what) (58 Points)
15 June 2016My i have sold a property in ay 2016-17 which was purchased in ay 2008-09. Now i have to pay capital gains around to 200000 what should I do to save this tax.
What types of improvement cost can be considered for
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 15 June 2016
if it is house property than best way to avoid tax is investing in new house property with in 2 years or construct new propoerty with in 3 years. Hence it is a long term capital gain hence exemption u/s 54 can be claimed. Also used indexation for calculating capital gain. by applying Cost Inflation Index.
Ashish
(what)
(58 Points)
Replied 15 June 2016
Which costs can be considered for improvement cost and can be indexed.
CA MANISH BINDAL
(CHARTERED ACCOUNTANT )
(535 Points)
Replied 15 June 2016
Cost incurred for repairing and renewation of house such as any plastering, painting cost etc.and indexation benefit will be given by applying Cost inflation index in which such improvement has been undertaken and CII of that year in which such assets is transferred.
Ashish
(what)
(58 Points)
Replied 18 August 2016
Whather new house is purchased on loan then exemption u/s54 available.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(162685 Points)
Replied 18 August 2016
If other conditions as per the section are satisfied, exemption u/s. 54 can be availed even when the same is purchased on loan.
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