Exemption in short term capital gain

Tax queries 2169 views 2 replies

Alok Sisodia

Proprietor

25 Points Joined March 2011

My client sold a Flat in July 2008 for Rs. 17 Lacs, which was purchased in Dec. 2007 for Rs. 17.10 Lacs, but the Circle rate ( State Govt.) are 20.50 lacs at the time of Sale, the A.O. is treating it as short term capital gain U/s 50c for Rs. 3.50 lacs.

My client has paid Rs. 10.00 Lacs out of this consideration for Full & final payment for other commercial property in August 2008. Is there any short term capital gain liability in this case or there will be any exemption from STCG.

Please advice me.

Thanks

Replies (2)

CA PARAS BAFNA

Practising CA

33428 Points Joined April 2009

U/s 50C , Circle rates can be treated as Sales Consideration. So the ITO is not wrong.

If rates have really come down in that area you may request the AO to get it valued form the department's valuation officer.

By investing in other property you will not get any exemption from STCG.

dileep kumar vp

practitioner

22 Points Joined July 2011

one of my client got a property from ancestors, but the receipt document was in sale deed format (value rs,90,000/-). now he sold the same 1cr. and build a house worth 40 lac in gifted land ( no docs. now for that gift)

is there is any exemption in short term capital gain?

can he get any benefit if he show some value for the residential land insted of gift

and wat is laibility for the lady (aged 75) who is giving / gifting the land

pl advise