Usage of funds in ltcg account

525 views 1 replies
User Avatar

AVP
37 Points Posted on 26 March 2012

Hi,

I sold a residential plot in December 2011 and parked the funds in a LTCG account. 

Can i use the funds for buying a residential property only or can this be used to buy a commercial property like an office premises?

Kindly clarify.

Regards,

Prithesh

 

 

 

0 Reply Share Follow
On 26 March 2012 at 16:36 Report
Replies (1)
User Avatar

Chartered Accountant
81 Points Posted on 26 March 2012
The amount of capital gain deposited in the LTCG a/c shall be used to purchase a residential property within 1 year before (or)2 years after the date of transfer (or) construct a residential property within 3 years from the date of transfer.
 
 In case you plan to use the amount deposited to purchase commercial property, please be prepared to pay Capital gain tax that you saved when you had sold the residential plot in Dec 2011.
 
Even if you plan to purchase/ construct a residential property, it is important that you invest the whole of the capital gain amount in purchase/ construction. If the amount of capital  gain is more than the cost of the new asset, then the difference will be charged as your income for the previous year  u/s 45.
Reply
On 26 March 2012 at 17:20


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details