Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2013 dear sir/madam,

my friend's father is passed away on 16.09.12, so property on his name trfd to 3 members equally

now they have decided to sell the shop at Rs. 48,50,000/-

so kindly advise what will be capital gain amount , and if they are buying new residential flat then capital gain tax needs to pay?

below is details for your easy ref.

GIRIRAJ _SHOP NO. 18
AGREEMENT DATE : 29-Jul-85
AGREEMENT VALUE : 50000
STAMP DUTY : 0
REGISTRATION : 0
TOTAL COST : 50000

CHATURBHAI DIED ON : 16-Sep-12
DEED DATE : 22-Dec-12
TRFD TO : %
Dilip C Dudhat :33.33%
Raju C Dudhat :33.33%
Shardaben C Dudhat :33.33%

CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 November 2013 Sale Consideration: 48,50,000
Less:.............. 50000
Cost of Acquisition

Short Term Capital Gain 48,00,000

Equally in the hands of all 16,00,000..

No Exemption in case of short term capital Gain...

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Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2013 thanks mr aryan

still they have not register the agreement

so if they do agreement on or after 23-dec-13

then they can get exeption ?

pls advise

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 November 2013 At least you have to hold 3 years the property go get exemption from capital gain...

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Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2013 Thank you Mr Singhania,

what i understand , that we can invest capital gain money in special deposit for capital gain to save tax

it is right , if yes then pls advise where to invest is safe

regards
piyush

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 November 2013 Taxpayers can avail exemptions under the CGAS {Capital Gain Account Scheme} only when the amount of capital gain, or net consideration, is deposited by the last date for filing the income tax return.

For example: If Mr Sen sells a property for a lump sum amount, also termed as a long-term capital gain, on June 10, 2011, he must invest that amount either in the purchase or construction of a new residential property within two years and three years respectively from the date of sale. If he is not able to buy or construct a property before the last date for filing income tax return, he should deposit the unused amount in CGAS.

In this example, Mr Sen sold his property on June 10, 2011; hence, he can buy or begin construction on a new property by September 30, 2012. If he fails to do so he must deposit the money on or before September 30, 2012 in CGAS.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2013 Same applies to short term capital gain also ?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 November 2013 No, Short term capital gain have to bear tax as normal slab rate...

No Exemption is allowed on short term gain in any section..

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