18 December 2012
Dear Sir, I sold my flat in Dec.2010 for Rs.2500000/- and the long term capital gain was Rs.1310783/-.Then i purchased a plot of 300 yards and started construction.I spent Rs.1365463/- on construction before 31/07/2011 and showed it in my Income Tax return filed in July 2011.YES I HAVE CLAIMED EXEMPTION U/S 54 IN MY INCOME TAX RETURN. After that till date i had spent a total amt.of Rs.3694000/- including capital gain amount of Rs.1365463/- on the construction after taking a loan of Rs.1200000/-from the bank.But the construction is still incomplete requiring atleast another big amount of Rs.700000/-. Now i am out of funds having no other source to raise money.Also i had to make arrangements for the marriage of my daughter in the next 7-8 months. So now i want to sell this UNFURNISHD HOUSE. What are my TAX LIABILITIES in this case. Please guide me accordingly as i am under great tension.PLEASE ELABORATE THE REPLY BY MAKING A CALCULATION. Tanking you. ARUN SHARMA
20 December 2012
Sale price of new property= XXX Less: Cost of the constructed propert= Rs. 1310783(Rs. 3694000-Rs. 1310783) Short term capital gain= Rs. XXXX
CAclubindia
