Capital Gain

This query is : Resolved

R.KANDASUBRAMANIAN (Querist)
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18 January 2011 Exemption u/s 54: -

An Assessee buys nearly six grounds of plot and constructs a residential house at one ground / plot. whether he can claim the capital gain on the cost of entire six grounds & cost of construction or one ground cost & cost of construction. please clarrify these points

Dongre Arun

Dongre Arun (Expert)
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18 January 2011 CG attracts when the Capital Asset is Xferred. So, in ur case, he can calculate CG on the Asset sold.

If he sells only part of plot + house - he can consider only such xferred property.
Or, if he sells all plots + house, then entire propert so xferre will eligible & fall under CG calculation.

Further, Calculation of CG depends on its nature. i.e Long term or Short term.