Regarding Long term capital gain exemption

Tax queries 1686 views 10 replies

If a person sells a plot for Rs 5 lakh on 30-3-2009 & Repurchases different plot of Rs 5 lakh on 20-7-2009. What will be the long term capital gains on such transaction? Is LTCG exempt for AY 2009-10 on such transaction.. please help me guys with specific section.

Replies (10)

yes exempt u/s 54 it is case for capital asset bought for capital asset sold

 wht is the date of purchase of plot and wht is the amount

Originally posted by :M @ n!$h
"  wht is the date of purchase of plot and wht is the amount "


 

Purchase dt-20-4-1995 on Rs 100000

Originally posted by :Indudhar
" If a person sells a plot for Rs 5 lakh on 30-3-2009 & Repurchases different plot of Rs 5 lakh on 20-7-2009. What will be the long term capital gains on such transaction? Is LTCG exempt for AY 2009-10 on such transaction.. please help me guys with specific section. "

Full Value of consideration                    500000

Less: Indexed Cost of Acquisition  

Less: Exempt u/s. 54F                       

 

sorry you can't claim exemption u/s 54 and 54f..... 54 - transfer of Res. house and Pur. of res. house..... 54f - transfer of LTC asset other than res. house and pur of res. house.... therefore transfer of plot means 54 does not apply and inorder to get exemption u/s 54f you need to pur or construct a res. house....since you invest in plot, there is no way of escape... you have to pay Long term Capital gains tax after deducting indexed cost of acquisition....54ec is also applicable in your case but investment should be made in specific assets for eg. REC bonds.. within  six months from the date of transfer of LTCA...

Section 54F of the IT Act: If you sell your Long Term Capital Asset (other than residential house) and invest the net consideration from the sale of the Long Term Capital Asset for constructing a residential house within a period of 36 months, you would not be charged for capital gains tax provided the cost of the residential house (including land) exceeds the net consideration from the sale of Long Term Capital Asset. If the amount spent for the construction of the house is less than the net consideration received, exemption from Capital Gains Tax would be proportionately reduced. This exemption is available provided you do not own a residential house on the date on which the transfer of the capital asset takes place. Moreover, this exemption is not for purchase of land alone but for construction of house thereon.

I my opinion assessee has sold plot not house. How will it be covered u/s 54 because it is applicable for 'SALE OF HOUSE' Regards Lovenish Bansal

Purchase of plot, followed by construction

 

Circular : No. 667, dated 18-10-1993. 

If the amount of capital gain for the purposes of section 54, and the net consideration for the purposes of section 54F, is appropriated towards purchase of a plot and also towards construction of a residential house thereon, the aggregate cost should be considered for determining the quantum of deduction under section 54/54F, provided that the acquisition of plot and also the construction thereon, are completed within the period specified in these sections

 

dear sir.

my client have purchased a property ( house) on 31/10/2008. as this property was very much in demand he made a purchase deed on 31/10/2008.  he had sold  a property (purchased in 1992-93)in 02/02/09 and wants to claim exemptions u/s 54f. can he claim the exemptions.

property purchased on 31/10/2008 for rs,15 lakhs as per purchase deed

property sold on 02/02/2009 for Rs,14,50,000/- ( propert purchased in the year 1992-93)

my question is that  the property was sold on 02/02/2009 and he had purchased a property "EARLIER"in the month of oct-2008. whether u/s54f will apply on this transcations

regards

barkat

dear sir,

my client had sold a property in the assesement year 2009-10 & had purchased a property in the assesemant year 2008-9.

i want to know that the above property  was purchased in 1992-93 & sold in 2009-10

he want to claims u/s 54f long term capital gain & had purchased "earlier" a property in the assesement year 2008-2009

details:

property purchased in the year 2008-09  12 lakhs

property sold in the year 2009-10 12 lakhs.

he had made advance & have registered the deed ( purchased deed) in the assesement year  2008-09 & have sold a property { long term capital gain} in the assesement year 2009-10 will he can get exemptions u/s 54f, as the purchase deed is been made in the assesement year 2008-09 & the sale deed in the assesement year 2009-10


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