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Long Term Capital Gains Tax

Tax queries 473 views 2 replies

I received a sum of money as a gift from my Grandmother in Mar 2009 from which I bought a house in Gurgaon making the full payment to the seller (Part payment in Mar 09 and full payment in May 09).

I also had a house in Pune which was thru a bank loan which I purchased in Nov 2006. I sold this property in Dec 2009 (post 3 yrs of possession). Paying off the bank loan, I purchased another flat in Pune which took care of 100% Capital Gains which I got. This property in under construction and will be ready post 3 yrs of buying it but have paid up in full now itself (if it helps, I can show that the full payment/last installment was made post 3 yrs of selling the property in Dec 2009).

In this case, will I get an exemption on the tax as I purchased another property with the gains that I got? I am confused about the tax liability around tax exemption on the second property. Does it make a difference as I received the amount as a gift from my grandmother to buy the house in Gurgaon? Which will be my 'Original' (as the law mentions) asset in this case? The Pune house bought in 2006 from my own funds or the Gurgaon house in 2009 to get an exemption?

Regards, Sid

 

Replies (2)

sir i better suggest you to consult any Prof. in your area like a Exp. CA so that he guides you away from tax problems and even make your case get away from SCRUTINY.

You have sold a property at Pune and purchased another which should qualify for exemption u/s 54.  However, it is possible that the Taxman may take the view that the house in Gurgoan will qualify for the exemtpion u/s 54 and seek to tax the CG arising out of sale of Pune house. 

Better go for professional help.



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