CAPITAL GAIN

This query is : Resolved

Robin Luke (Querist)
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15 July 2010 haii,

I have purchased a residential house on 1.7.2008 for Rs.40L , as of now(1.7.2010) market price is Rs.100L. I would like to sell the property (to my friend) and invest the money to purchase another flat but the possession/date of purchase will be n 1.8.2011

Impact-(My view) I have to pay tax for the CG since it is a short term as well as there is no benefit availed even i invest the entire amount in another residential property.

Please help me on this!!!

One option is to get the sale consideration as advance for sale and make the date of sale after three years(it will become long term capital gain so i can claim 54)is it possi?? Any other choice???

srinath

srinath (Expert)
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15 July 2010 hey
As rightly pointed out by u, u wil not avail the benefit of section 54.

u can invest the amount of capital gain in 54EC bonds within 6 months from the date of sale.

to invest in another property u/s 54 u can do it within 2 years in case of buying and 3 years in case of purchase.

the option pointed out by u is not feasible. as soon as u receive advance and the buyer take possession of the property it would be transfer u/s 2(47) and hence capital gains would be attracted.

STCG does not have any other benefit