Long Term Capital Gains

Dear Mr. Sharma,

Thank you very much for the prompt reply.

Sorry to seek further clarifications.

I have been told by some friends that capital gains could be invested only in one house and

not more than one.  That is why the question of joint ownership.

Secondly, the transaction was completed in July 2010 (i.e. in F.Y. 2010-11)

The money was to be utilized for purchase of house before due date of filing of return, i.e.,

31.07.2011.  So, immediately the money was deposited in joint savings account.

During the interregnum period, the capital gains (35 lacs) was utlized as follows :-

1.  Flat booked in Noida (Cost 13 lacs) : 12 lacs paid

2. Flat booked in Gurgaon (Cost 30 lacs) :  5 lacs paid

3. The balance was kept in FDR to be matured in mid July 2011.

4. Rs. 2 lacs were given as loan to one of the sons of assessee which would be

   refunded by him in June 2011.

5.  In July 2011, the assessees would like to open Capital Gains Account

and deposit the balance amount in that

U have mentioned that within 180 days, the account must be opened.

if it could not be done, then what are consequences

regards

manish 

Originally posted by : manish
	Dear Mr. Sharma, Thank you very much for the prompt reply. Sorry to seek further clarifications. I have been told by some friends that capital gains could be invested only in one house and not more than one.  That is why the question of joint ownership. - capital gains are taxed in hands of individual, hence per pan lmit is not more than one.  Secondly, the transaction was completed in July 2010 (i.e. in F.Y. 2010-11) The money was to be utilized for purchase of house before due date of filing of return, i.e., 31.07.2011.  So, immediately the money was deposited in joint savings account. During the interregnum period, the capital gains (35 lacs) was utlized as follows :- 1.  Flat booked in Noida (Cost 13 lacs) : 12 lacs paid 2. Flat booked in Gurgaon (Cost 30 lacs) :  5 lacs paid 3. The balance was kept in FDR to be matured in mid July 2011. - capital gains schemes have nothing diff than FDR, except the obligation to intimate the banking officer the purpose in writing. you had to deposit the same in cap gain account for your sure satisfaction.  4. Rs. 2 lacs were given as loan to one of the sons of assessee which would be    refunded by him in June 2011. - use of cap gains in other places can disqualify the assesee to avail the exemption. 5.  In July 2011, the assessees would like to open Capital Gains Account and deposit the balance amount in that - here any minor mistake in part of obligations would cause a blunder to assesee as he is using all options in 11th hour, so do it with extreme caution, otherwise u have to face the music of laws.  U have mentioned that within 180 days, the account must be opened. if it could not be done, then what are consequences   regards manish

Too much calculations in such cases create the disaster, govt has allowed exemption on the belif that assesee has to get a new home with the capital gains so govt allows exemption, now if assesee play games and tricks in the time period to get more and more ...........

rem the capital gain proceeds are to be reported in your return in quarterwise frame, with details so the AO has clear view of funds in hand, and if he gets that assesee has used the funds anywhere else , except the aquiring a new residential property ( in delay , deposit the same in cap gain account) then its power to AO to disallow the whole cap gains utilized elsewhere. 

rules are made to pay relief to the actual taxpayers, not for the gamespeculation.

I have purchased a residential plot (Land) in my home town in year 2000. Which I am planning to sell this year (FY 2011-12).

I have two question. What will be Tax rate applicable, with and without indexation.

Is there any way I can save the tax on long term Capital gains (like specified Bonds) and How do I buy these bonds. Can I invest this money in a house/flat to take benefit of tax.

Regards,

Sunil

Dear Mr Sharma,

Further to Manish's question above I have a query if you could please help clarify:

1. if the original property was held jointly and the entire proceeds are now invested in another residential property in the names of the original joint owners, but an additional owner name is added as a joint owner in the new property, would there be any implications on the capital gains for the original joint owners, or would any new tax liability be created for the 3rd (new) joint owner.

2. Also, would it matter if the 3rd (new) joint owner is an NRI.

Regards

SSB

registration instrument clearly mention the percentage of property in all cases, so the sum used by joint holers of old property is to be taken in account and the share of 3rd holder would be additional with fresh intake of capital inflow towards the cost of new property. 

i.e if the total proceeds of last sale in name of two persons is 200/ and they want to add a new co owner then total three persons are there and if equally shared then new property would be of 300 or more out of which 200 or more is contributed by the previous owners.

If I hv sold a property and deposited the gains in a normal savings account not mentioning it for capital gain account but I have used the whole gain for purchase and construction of a house. Will I be eligible For exemption under section 54 or not be given the exemption for depositing it in a normal savings account and not mentioning it is for capital gian account. Plz let me know the same along wit a case if any. And also any alternative if not allowed the exemption. Thank you