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Long Term Capital Gain

SANJAY (MANAGER) (67 Points)

27 April 2011  

I purched house in 2001 and sold on 15 may 2010, The capital gain was 8.5 lacks.If i purchase house within 2-3 month is it my capital gain get adjusted for ready house not in construction.What is the proper rule for LTCG.


 3 Replies


(Guest)

as per section 54  you can purchase house 1 year before the tranfer

or 2 year after the transfer or construction with in 3 year for getting exemption benifit

CA. Arpita Singhal (Partner) (100 Points)
Replied 27 April 2011

as per Section 54 an exemption can be claimed of the LTCG arriving on sale of a residential house property.

to claim the exemption a house property shall be purchased one yr before or within 2 yrs after the transfer of original HP. Amt of exemption will be:

i)if LTCG is less then or equal to the Cost of new HP-Entire LTCG will be exempt

ii)if LTCG is higher than cost of new HP-difference between LTCG & cost of new house will be chargeable to tax as LTCG

NEw hp should not be transferred within a period of 3yrs frm the date of purchase.

Arniv Sharda (CA Final) (3006 Points)
Replied 27 April 2011

Originally posted by : vikasgupta

as per section 54  you can purchase house 1 year before the tranfer

or 2 year after the transfer or construction with in 3 year for getting exemption benifit

cheers


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