Capital gain
This query is : Resolved
03 March 2014
An assessee gave a Land as his capital in a Partnership firm.
It was a long term asset on which Capital Gain is levied at the value on which it is transferred to the partnership.
My question is whether the assessee can claim exemption u/s 54? If yes, than what are time limit of investment as the assesse has not received any amount from the Partnership.
It was a long term asset on which Capital Gain is levied at the value on which it is transferred to the partnership.
My question is whether the assessee can claim exemption u/s 54? If yes, than what are time limit of investment as the assesse has not received any amount from the Partnership.
03 March 2014
1. Since land has been transferred the assessee can avail exemption u/s 54F if he invests the SALE PROCEEDS in a residential house property.
The time limits for investment are as under:
Purchase - 1 year BEFORE or 2 years AFTER the date of transfer
Construction - 3 years AFTER the date of transfer
However, if the amount is NOT invested on or before the due date of filing the income tax return, then the sale proceeds have to be deposited in a capital gain scheme.
2. The fact that the assessee has NOT received any amount from the firm makes no difference since capital gain arises on transfer (accrual basis).
The time limits for investment are as under:
Purchase - 1 year BEFORE or 2 years AFTER the date of transfer
Construction - 3 years AFTER the date of transfer
However, if the amount is NOT invested on or before the due date of filing the income tax return, then the sale proceeds have to be deposited in a capital gain scheme.
2. The fact that the assessee has NOT received any amount from the firm makes no difference since capital gain arises on transfer (accrual basis).
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Sale of property furniture sale
- Applicability of Ind As to associate of associate
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
