Saving capital gain tax

860 views 5 replies

arun kalra

Supdt

29 Points Posted on 03 June 2012

I have sold a residential plot for Rs 50 lakhs on 23/12/2011.

This plot was purchased by me on 23.03.1998 for Rs 182000/- plus registry charges of Rs 34810/-

Subsequently, I have made an agreement on 06/01/2012 with the builder/developer, for purchase of builtup house to be constructed & give possession within 3 years from the date of agreement. The agreement to purchase this flat has been made for Rs 51 17 lakhs.

Now kindly let me know as to what are my liabilities to Income Tax deptt. and how to show all this in my Income Tax return for the A.Y. 2012-13.

Thx

Replies (5)

CA. Abhishek K. Pandey

Manager (Advance)

906 Points Posted on 03 June 2012

Dear Arun. The sale of house by you has attracted LTCG. I can't tell you the figure as I am on mobile and indexation table is not available with me. But since you have purchased a house in January 2012, you will get relief from LTCG. Since, the purchase price of new house is 51.17 Lacs, your whole LTCG is exempt. In your ITR you need to furnish the details regarding the LTCG and then you have to claim the deduction u/s 54.

arun kalra

Supdt

29 Points Posted on 04 June 2012

Sir,

I am greatful to you for replying to my query.

Further, I would seek your attention on the point, that as of now I have booked a flat yet to be built by making an agreement with the developer/builder and also made full down payment. Now my query is that whether the relief from LTCG under Income Tax law is available on booking of flat/house or only on its possession also ?

Thx

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Posted on 04 June 2012

Firstly when the flat is booked, it is as good as investing in a new house.

When you actually possess th new flat, then it will take over as the date of acquisition of the new house. Since the house is constructed within 3 years, you can claim exemption from your cap gains tax.