I had purchased 40 cents and now I want to sell it as a layout....now I'll sell 10 cents land with building.ill construct another building on another 10cents of land.
Exemption is available once time..
So my question is whether i can claim exemption if I sell another 30cents (10cents *3)
Please mention the jurisdiction of the abovevtransaction.
This has taken place abroad.
So Indian income tax act is not applicable.
Indian Karnataka
It's in Karnataka.
If my capital gain is (34 lakh -28lakh)₹6 lakh
Whether i can reinvest only ₹6lalkh under section 54 and use balance amt for other purposes
Which balance amount, you are suppose to use for other purposes?,( because entire Capital Gain is 6 lacs ) please elaborate your query in detail .
Yes .
Sale consideration. ₹ 34lakhs
(-)Cost of acq.[1990].without index ₹ 1lakh
(-) Cost of improvement(building construction cost on selling prop.) ₹27lakh
Therefore, total captain gain = ₹6 lakh
(-) Section 54 exemption. ₹6lakhs
Therefore net cg = nil
So only 6lakh in have to reinvest on residential property?
yes. you need to reinvest the capital gains portion only. Please ensure that you have aportioned only 25%of the cost of land to this transaction.
Actually we will reinvest more...more than 6 lakh can we use for other purposes???
CAclubindia
