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sec 54, amount invested or cost of new flat ?

Tax queries 580 views 5 replies

a client sold 4 yrs old selfocupied housepropert in 40 lacs, indexed cost of aq 25lacs
and enters in agreement to purchase new house cost 60lacs, downpayment 6 lacs and
balance keeping in sb a/c ...how much 54 exeption he get...entire proceed or down payment only..

for AY 10-11 as on 13.07.2010

Replies (5)

in order to get exemption u must either utilised u r capital gain amount before date of filing return or deposite in with capital gain deposite scheme held by SBI. u cant keep u r balance money in u r SB a/c.

IF U DEPOSITE BALANCE OF U R AMOUNT ( 9 LAKHS )  WITH SBI IN THAT A/C BEFORE DUE DATE OF FILING THE RETUN 31 JULY 0R 30 SEPT AS THE CASE MAY BE, U CAN CLAIM ENTIRE AMOUN AS EXEMPTION U/S 54.

IF U FAILED TO DEPOSITE THE SAME, ONLY DOWN PAYMENT MADE WILL BE AVAILABLE AS DEDUCTION AND U WILL HAVE TO PAY TAX ON 9 LAKHS @ 20%

dear ravi sir

friend priyanka is right.you have only two options in this case-1)utilise amount of gain before date of return 2)otherwise deposit into capital gain a/c scheme.

regards

tarun rustagi

hi to everyone,
I want to know that Saving A/C and capital gain A/C are one and the same .

If not then the balance should be invested in capital gain a/c in order to gain exemption u/s 54 .

@ Narendra:

They are both different... You will know more details at any branch of SBI...

hi shivang,
I want to mention that all person above has said to invest in sb a/c instead of capital gain a/c .
According to IT act , capital gain a/c is mentioned to invest in order to claim exemption.


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