One of my Assessee having 3 lands ownerships in percentages amongst brothers in Baroda Area. Where the Assessee decided to retain only 1 land and sale the 2 land ownership percentages/rights to other brothers and on sale my assessee receives the amount of sale consideration and against which 1 he retains he pay off to his brothers share as purchase consideration.
i.e. Land 1 (which my assessee retains) pay off his brothers Rs. 54.00 Lacs (purchase consideration)
Land 2 (which my assessee receives on his brothers on sale Rs. 30.00 Lacs (sales consideration)
Land 3 (which my assessee receives on his brothers on sale Rs. 40.00 Lacs (sales consideration)
Now query is that on calculation of indexation if capital gain arrives some amount, can I claim the CG against my new purchase, under section 54EC upto Rs. 50.00 Lacs as per REINVESTED in Land.
The whole transaction is done in Baroda Area within the Municipal Corporation Limit.
Please give URGENT Feed Back because 15th March, 2009 is nearest for Advance Tax if you resolve the query fast so I can make the payment in time
in Short can i claim gain against my purchase land?
No you can't. Sec 54EC is for CG on transfer of LTCA when invested in Specified Bond. Here No Specified Bond are purchased, EC is not available for purchase of land.
08 March 2009
Also, the investment in 54EC is not an "Upto" investment. The max limit is 50 lacs. If u invest 55 Lacs it will not be allowed as exemption. So, better invest 50 Lacs only.
CAclubindia
