Query for capital gain
A RESIDENTIAL PROPERTY WAS PURCHASED FOR 3 LAKHS IN 1984.
1/4 TH. OF THE HOUSE HAS BEEN SOLD FOR 58 LAKHS. HOW MUCH IS THE CAPITAL GAIN ?
ALL THE PROCEEDS 58 LAKHS HAS BEEN SPENT ON THE RECONSTRUCTION OF THE SAID HOUSE.
NOW, THE QUERY IS THE CAPITAL GAIN OBTAINED BY SALE AND INVESTED IN THE CONSTRUCTION OF THE HOUSE IS TAXABLE.
THANKS
D BHATA
dineshbhatia.1224 @ gmail.com
Replies (1)
Sale COnsideration - Rs 58 lakhs
Cost of Acquisiton (COA) = Rs 75,000/- (i.e 1/4 of Rs 3 lakhs)
Calculate the indexed COA accordingly and hence, CG can be figured out.
Exepmtion u/s 54 can be claimed for reconstruction of another house provided it is actual reconstruction and not mere modification or alteration. Secondly, constuction should be completed within 3 yrs from the date of transfer & the reconstructed property is to be held for 3 yrs since its completion else CG exempted earlier will be treated as CG for the year of transfer of reconstructed property.
Regards
CA Shivani Mittal
Recent Topics :
- Bill-to-ship-to material at client site, project c
- Export previously now to be considered domestic sa
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
Related Topics :
CAclubindia
