31 March 2011
dear sir, i sold my plot on 22/02/2011 at rs. 8 lacs, which was purchased by my grand father at rs 6000 at 1975. i want to puchase the plot, what is the time limit for me to avoid tax and to puchase plot. greatful if resolved soon..
Sale Consideration 8,00,000 (-) Expenses on Transfer - Net Sale Consideration 8,00,000
Indexed Cost of Acquisition
7500*711/100 53,325
LTCG 746675
Note:
If you use this amount of LTCG & Purchase a new residential HP with in 2 years or Construct a NEW HP with in 3 years, you can claim the benifit of Rs.746675 under Sec 54 to the extent of the Money used for the Purchase or Construction of the NEW HP
Eg 1. if the New HP is Purchased / Constucted at say Rs.600000, then the Remaining amount of Rs.146675 would be taxable OR
Eg 2. Say it is Rs. 1000000/- they the exemption would be restricted to Rs.746675 i.e.to the extent oif Capital Gains made.
Note: you could also Claim Deduction under Sec 54 EC by investing in REC / NHAI Bonds if there is any short comings like explained in Eg 1 above to claim full deduction of Capital Gains
19 April 2011
In addition to CA. Lohith reply, Please make sure if you are not able to purchase or construct house within specified period, the amount is required to deposit in Capital Gain Saving Bank account before the due date for funishing of return for the relevant previous year. Amount can be withdrawn periodically for the purpose of availing exemption U/s 54.
Investment in bonds as specified in section 54EC should be within 6 MONTHS FROM THE DATE OF CAPITAL GAIN.
CAclubindia
