What is a meaning of let out house property ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Hello to every Experts ?

Kindly Guide & Instruct me to know about How to Calculate Capital Gain ? Capital Amount where to invest to save tax Sale Price - Purchase price - Capital Gain Invested amount = where to add. additional amount of sale of house property ?

Is it add to Capital as _______ ? or
It should be sale of House Property on Liability Side ?

thanks alot if any expert solve my Problem..

thanks once again

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 August 2010 First of all the query is not very clear. What i understand from ur query is where the capital gain from house property to be invested to save tax and how to account for the same in the books.

So ur capital gain if the house is head for more than 3 years can be invested in purchase of a residential house property u/s 54 the amount of investment will exempt ur capital gain to that extent.

U can also invest in bonds upto Rs. 50 lakhs u/s 54EC in the bonds as prescribed in that section and the amount of investment will exempt ur capital gain to that extent.

For accounting purpose the capital gain will be credited to the capital account as long term capital gains on sale of property.