Please help!-tricky ltcg issue

Tax queries 448 views 4 replies

lightspace22

owner

26 Points Joined August 2013

I have asked a few CA,s and vereyone gives me a differt answer! I hope memebes on this forum can help me out on ths one:

a piece of land worth 1cr was gifted to me by my father in april/13
I sold this land to 3 buyers(25% each). 25% is still to be sold in a months time.
All 3 registries were done on the same day-May/13, but on different names.

for LTCG exemption can I :
invest the entire 75 lakhs in one residentail house/flat? (Some CA's have said that I can invest the whole amount, as its from the sale of ONE land.)

Other say, since the registry is of 3 different people, the sales will be treated differently and i cannot club them. Hence I can only buy 1 house of 25 lakhs only.

Can someone throw some light on this?
your advice will be highly appreciated. Thank you in advance for your time.

Replies (4)

Mihir

Wealth Manager

5293 Points Joined December 2008

Your father purchased a plot few or many years ago. He gifted the plot to you with a Gift deed duly stamped and registered. Now you have divided the plot into 4 equal parts. Out of 4 parts, you sold 3 parts to 3 different buyers.

I think since you are have sold all 3 parts of the plot in the same financial year, you should be able to take the aggregate value and compute your long term capital gain because the sale consideration received is in the same year and you will have to show all 3 sales in your ITR of the same AY.

Wait for others to reply.

lightspace22

owner

26 Points Joined August 2013

Thanks Mihir. Can any other memeber please help me out on this one?

lightspace22

owner

26 Points Joined August 2013

No one for a little advice/help? come on members, you advice can mean a lot to me...!

Amber Jain

Article Assistant

206 Points Joined August 2012

Dear user,

Exemption will be available to you as the reverse case was there and it was held that exemption will be available if with the receipts of sale of residential property invested in purchasing 2 units which are adjacent to each other then exemption cannot be withdraw on the ground that different units are purchased.

So referring to the same grounds exemption will be available to you as your purpose is to sale a single unit and invest in the single residential property irrespective that the amount from sell is received from different parties.

Thanks & Regards

Amber Jain