Exemption of income tax on long term capital gain

NO sir , she only gonna get the  exemption on amount spend on purchase or construction of NEW RESIDENTIAL HOUSE  ( whether or not it is purchase in joint name ) U/S 54F . exemption will be proportionale to the sale considetration. 

no exemption is available for renovation or major maintenance of the house .

 However where first floor is constructed which can be treated as separate residential unit ,  exemption will be available .

Dear Sir,

      I am extremely thankful to have clarification of my query.

Regards

N.N.Roy

Dear Sir,

  I am thankful for replying my query in regards to exemption on Long Term Capital Gain. I feel myself if you kindly enlighten me whether the Development Cost also includes the followings

a) Land Filling

b) Construction of boundary wall and store shed

c) Expense incurred for providing security 

d) Payment of Khalna and cost for conversion of land from Jal Jami to Bastu

Shall be thankful to have your reply.

Regards

N.N.Roy

(a) ,  (b) ,  (c) will definately get covered in Development cost .

i am sorry i don't understand the (d) point .

Dear Mr.Taprania

                      Sir,

                           I am very much thankful to you for satisfying my querries in regards to getting exemption of Income Tax in case of Long Term Capital Gain. I shall feel obliged if you kindly let me know the method of calculating the Fair Matket Price of a piece of land when the sell price of the land has not been mentioned in the deed (as the land was transfered by deed of gift). However, it may be mentioned here that the Deed of Gift was registered in Sept, 1995 and the plot of land was sold in June,2015 and the value of the property was mentioned Rs2000/ in the deed to ascertain the Registration Cost of the deed. .

Regards

N.N.Roy 

Dear Sir,

   I sent an e-mail 5 days back addressing Mr Taprania regarding my querries about mode of calculation for market price of a piece of land in regards to claim exemption from Capital. But unfortunately I have not received a reply yet. It will be matter of good gesture to have your reply in this regard.

Regards

N.N.Roy 

Well it is easy,

1. contact the registrar and obtain sale information of comparable lands near to your property in past 6 months from june  . they will charge some amount but they will provide the information .

2. take the average sale consideration as FMV and add any development cost you have incured recently.

 

Dear Mr.Taprania

  I am again conveying my sincere thanks to you for sending for replying my query. But I unfortunately placed the question in a confusing way due to which the reply was not appropriate to meet my need. Now I am elaborating the issue to grasp my problem.I received a plot of land from my mother by Deed of Gift  in September, 1990 & sold  the same at Rs15.0 lakh in June,2015. As the land was received as gift, no mention of price  was made in the deed. However, a sum of Rs 2,000/ was mentioned in the deed as property value to ascertain the Stamp Duty & Registration Charge. Now, I would like to know how to ascertain the value of the property to claim exemption from Income Tax. However, the land was purchased by my mother at Rs 4000/ in Jan, 82. As I understand that the FMV of the land (in 1991 was aprox Rs 1.35 lakhs but no documwntary evidence could be provided). Can you help me to get out of this problem.

Shall be waiting for your valued reply.

Regards

N.N.Roy

Well, i am guessing by " value of the property " you want to know the cost price in your hand ,to calculate capital gain and ultimately exemption.

see in case of gift , cost in the hands of the previous owner is to be taken as cost of acquistion . the amount specifed in the gift deed for registraion purpose has no relevance . so 4000 will be taken as cost and your indexed cost of acquistion will work out to be 43,240.

Moreover FMV in 1991 has no relevance.

IF THIS IS NOT HELPFULL DIRECTLY CALL ME ON : 8909809781 

Dear Mr.Taprania,                                                                      Date 16.01.2016                                                                              

               I am immensely grateful to you for providing me a lot of information to get exemption from Income Tax for accruing Capital Gain by selling a plot of land. But I, in fact, have bogged down in a bad condition due to my sheer ignorance about Income Tax Rules and wrong advice given by a Tax Consultant in this respect. Although I, received a lot of clarifications from your end but still I am in a very tizzy condition and need your valued guidelines to come out honorably from this situation. I am furnishing below the entire episode to understand the problem so that you can guide me accordingly.

              Sir, I received a plot of land from my mother by Deed of Gift in Sept, 1990 and sold the same at Rs15.0 lacs in June, 2015. My father purchased this plot of land in July, 1981 in the name of my mother at Rs.4000/but we lost the deed during shifting of house. After transfer of land in my name in Sept, 1991 I developed this plot of land by earth filling and constructing boundary wall and one small shed for storing waste materials and spent Rs. 1.51 lacs  (1.05 lacs for boundary wall +Rs.19,000 for shed and Rs.27,000/ for earth filling) in January, 1992. As the jobs were done long time back the documentary supporting of the expenditure incurred are not available.

            Sir, I may further mention here that I received a sum of RS.15.0 lacs towards sale of land both in cash(Rs.3.0 lacs)and two D.Ds(one Rs.9.0 lacs and other one Rs.3.0 lacs) and deposited the same initially at few banks and subsequently invested Rs.13.0 lacs in Senior Citizen Savings Scheme at Post office. Although I intimated the entire position to the Tax Consultant but he assured me not to worry about and he would take necessary measure to avoid tax. But recently I consulted one of my friends who told me that I have done a melee and should consult a reliable consultant and gave the web site reference of your organization for help.

                  Sir I am running 68 years of age and presently suffering from viral fever. My voice has become choked and did not phone you in spite of having your contact no. I hope that you will understand entire issue and shall help me by providing your suggestion considering different pros and cons stated hereinabove.

Regards

N.N.Roy

Dear Mr.Taprania,                                                                      Date 16.01.2016                                                                              

               I am immensely grateful to you for providing me a lot of information to get exemption from Income Tax for accruing Capital Gain by selling a plot of land. But I, in fact, have bogged down in a bad condition due to my sheer ignorance about Income Tax Rules and wrong advice given by a Tax Consultant in this respect. Although I, received a lot of clarifications from your end but still I am in a very tizzy condition and need your valued guidelines to come out honorably from this situation. I am furnishing below the entire episode to understand the problem so that you can guide me accordingly.

              Sir, I received a plot of land from my mother by Deed of Gift in Sept, 1990 and sold the same at Rs15.0 lacs in June, 2015. My father purchased this plot of land in July, 1981 in the name of my mother at Rs.4000/but we lost the deed during shifting of house. After transfer of land in my name in Sept, 1991 I developed this plot of land by earth filling and constructing boundary wall and one small shed for storing waste materials and spent Rs. 1.51 lacs  (1.05 lacs for boundary wall +Rs.19,000 for shed and Rs.27,000/ for earth filling) in January, 1992. As the jobs were done long time back the documentary supporting of the expenditure incurred are not available.

            Sir, I may further mention here that I received a sum of RS.15.0 lacs towards sale of land both in cash(Rs.3.0 lacs)and two D.Ds(one Rs.9.0 lacs and other one Rs.3.0 lacs) and deposited the same initially at few banks and subsequently invested Rs.13.0 lacs in Senior Citizen Savings Scheme at Post office. Although I intimated the entire position to the Tax Consultant but he assured me not to worry about and he would take necessary measure to avoid tax. But recently I consulted one of my friends who told me that I have done a melee and should consult a reliable consultant and gave the web site reference of your organization for help.

                  Sir I am running 68 years of age and presently suffering from viral fever. My voice has become choked and did not phone you in spite of having your contact no. I hope that you will understand entire issue and shall help me by providing your suggestion considering different pros and cons stated hereinabove.

Regards

N.N.Roy