Capital Gain
This query is : Resolved
17 March 2010
Hi.. Can anyone help in the following case?
Assessee has sold Residential house on which LTCG is applicable.
Now from the sale proceeds of this house, he wants to construct additional floor on his existing house.
But construction will take more than 1 year... so is the assessee required to transfer the sale proceeds to Capital Gain account scheme?
Also if after indexation, if there is no LTCG, then also is assesse required to transfer the money to Captal Gain A/c scheme?
Please advice....
Assessee has sold Residential house on which LTCG is applicable.
Now from the sale proceeds of this house, he wants to construct additional floor on his existing house.
But construction will take more than 1 year... so is the assessee required to transfer the sale proceeds to Capital Gain account scheme?
Also if after indexation, if there is no LTCG, then also is assesse required to transfer the money to Captal Gain A/c scheme?
Please advice....
17 March 2010
1.For the Construction of New house or addtion the limit is 3 years and not one year. However for this period you have to deposit the amount into Capital Gain Account.
2.If after Indexation, there is no Capital Gain, i.e. no amount is taxable in the hands of Assessee. As there is no taxable gain is there, the sales proceeds are not required to be deposited in the Account.
2.If after Indexation, there is no Capital Gain, i.e. no amount is taxable in the hands of Assessee. As there is no taxable gain is there, the sales proceeds are not required to be deposited in the Account.
17 March 2010
agree with expert
18 March 2010
Can u pls forward me any case law, or text in the ACt where it is mentioned that if after indaxation, there is no profit then the amount may not be transferred to Cap. Gain A/c.
18 March 2010
you check sec 48 of IT act for your reference
18 March 2010
http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/section48.htm
check above link for related sec. 48
check above link for related sec. 48
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