Ltcg exemption time has crossed.

Tax planning 169 views 10 replies

karthy

32 Points Joined January 2012

Hi Team,

I sold my plot on Aug 22 2016 for sale amount of 34Lakhs out of which 17 lakhs is capital gain.

I haven't buy any property yet to get ltcg exemption. Based on section 54F I have deposited the sale consideration amount in capital gain acct on 16 July 2017 for two years.

Queries:

I have chosen the old house to buy and registration got delayed due to seller. Can I register tat house on October 2018 to get ltcg tax exemption ?
Cost of that old house is 55 Lakhs, taking housing loan of 13 lakhs + capital gain amount of 34Lakhs and remaining amount will be given to me by parents has part of settlement gift. Is tat ok to get LTCG exemption by buying this house with combination of multiple finance option?
Last one, If LTCG is not exempted is this case,will they ask me pay tax for whole sale consideration or only for capital gain, since full sale consideration is in LTCG account?

Thank you

Replies (10)

rama krishnan

12244 Points Joined May 2017

since time limit for claiming 54f deduction in respect of purchase of house property is time barred, you have to pay tax on capital gain

Hi Sir,Thanks for your reply.. How about buying a plot which is in time of 54F? If LTCG is not exempted is this case,will they ask me pay tax for whole sale consideration or only for capital gain, since full sale consideration is in LTCG account?

rama krishnan

12244 Points Joined May 2017

you can purchase plot and the construction of house property on that plot to be completed within 3 years from the date of sale of original asset. if you failed to do so, tax will be levied on capital gains and not on sale consideration

karthy

32 Points Joined January 2012

Thank you , sir But I have deposited whole sale consideration in capital gain account due to I sold the plot still I need to pay tax only for capital gain right?

karthy

32 Points Joined January 2012

Can I buy a plot with whole sale consideration amount? what type of documents government will look for to know construction is completed on the plot or not.?

rama krishnan

12244 Points Joined May 2017

capital gain accounts scheme is to make sure that the sale consideration is not utilized for any other purposes except for the construction or purchase of new Residential property within the time allowed. if you failed to purchase or construct residential property, then the amount deposited (i.e. capital gain) in the cgas will be deemed as your income for the respective a.y.

karthy

32 Points Joined January 2012

I have 34lakhs in LTCG account. In tat capital gain amount is 17 lakhs. If I didnt buy any residential property till three year. Do I need to pay tax only for 17Lakhs(Capital gain? or for 34 lakhs(sale consideration)? Last one Sir... Sorry for too many times .similar type of question slightly confusing me.

Ashwin Kumar

CA ipcc

449 Points Joined October 2017

you will have to pay tax only for the amount of rupees 17 lacs and you have deposited the amount after 6 months from date of sale of asset that is the reason i am thinking you will attract tax

karthy

32 Points Joined January 2012

Thank you sir, for your response My last question is Cost of that plot is 53 Lakhs, taking housing loan of 13 lakhs + capital gain amount of 34Lakhs and remaining amount will be given to me by parents has part of settlement gift. Is tat ok to get LTCG exemption by buying this plot with combination of multiple finance option?

Ashwin Kumar

CA ipcc

449 Points Joined October 2017

you cannot claim ltcg exemption on purchase of a new property as you are already holding a property and you can claim the exemption only if the loan is sanctined by housing development corporation (or something like that)