Hi I sold a house property for 1 crore, the cost of purchase with index calculation was only 10 lakhs. 90 lakhs was the capital gain.
I deposited 50 lakhs in REC bonds within 6 months from the date of the sale and the balance 40 lakhs was kept in a capital gains account scheme with SBI within time period, Now I have purchased a new apartment for 35 lakhs in joint name with my sister before the completion of 2 years, is it allowed?
thanks,
Dear Sir,
Yes both investment in bonds & acquisition of new property can be done in order to reduce taxable gains.
Acquisition in joint name with sister is perfectly fine.
I believe your question is towards the tax treatment of remaining / unutilized amount of Rs. 5 LAKHS?
Now if not utilized before the expiry of 3 years then this 5 LACS will be taxable on the expiry of 3 years from the date of transfer of original property.
Exemption of Rs. 85 Lakhs will still be available.
yes i agree to amir
CAclubindia
