Capital gain
This query is : Resolved
14 January 2012
Have a Nice day
My client have four son and two residential house before 1981 cost A-42500.00 & B-275800 now sale "A" house Rs.45 lac and invest to residential hosue for son but purchse own name rs.3425800 in 2010 how can I save tax
My client have four son and two residential house before 1981 cost A-42500.00 & B-275800 now sale "A" house Rs.45 lac and invest to residential hosue for son but purchse own name rs.3425800 in 2010 how can I save tax
15 January 2012
1. You have to get the value as on 1.4.1981, in respect of the House A.
2. Suppose, it is valued at Rs.100000/- as on 1.4.1981.
3. Indexed cost = Value as on 1.4.1981x 7.85
Or 785000.
4. The House Purchased by assessee should not be earlier then 1 year , from the date when House A is being transferred. for claiming exemption/ partial exemption.
5. Capital Gains =4500000-785000=3715000
6. Taxable Capital Gain = 3715000-3425800
7. Please note that 3425800/ must have been invested within 1 year before sale of House
A. Otherwise the assessee will have to purchase another residential house.
2. Suppose, it is valued at Rs.100000/- as on 1.4.1981.
3. Indexed cost = Value as on 1.4.1981x 7.85
Or 785000.
4. The House Purchased by assessee should not be earlier then 1 year , from the date when House A is being transferred. for claiming exemption/ partial exemption.
5. Capital Gains =4500000-785000=3715000
6. Taxable Capital Gain = 3715000-3425800
7. Please note that 3425800/ must have been invested within 1 year before sale of House
A. Otherwise the assessee will have to purchase another residential house.
Message likes :
1 times
15 January 2012
Completely Agree with Bafna Sir.
Also, coming to your query to save tax, you need to invest the balance Rs. 2,89,200 in capital gains bonds like NHAI and REC. This will make the tax liability of your client as zero.
Also, coming to your query to save tax, you need to invest the balance Rs. 2,89,200 in capital gains bonds like NHAI and REC. This will make the tax liability of your client as zero.
Message likes :
1 times
15 January 2012
Can I Invest for Commercial building rs 780,000/- (Shop) for save tax from sale of Residencial House. How ? pls exmaple as above
15 January 2012
Against comm. property you will not get exemption. Better, you purchase bonds as suggested by Prof. Bajaj.
Please also confirm at your end that the time difference between the 2 transactions does not exceed 1 year.
Please also confirm at your end that the time difference between the 2 transactions does not exceed 1 year.
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Should I report my US salary for January, February, March in Schedule FA?
- 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
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
