Capital gain query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Dear All,

My friend has purchased flat for commercial used in July,2007 for Rs. 9,80,200/- and the same was sold by rs. 20,83,334/-in Nov,2011.

Another flat was purchased at the same building for office used in May,2009 for rs. 3,13,754/- and sold the same for Rs. 5,83,334/- on Nov,2011.

Along with Above, he also sold his commercial plots at jaipur for Rs. 5,00,000/- 0n 13-3-2012. Date of Purchase was 24-06-2005 and purchase value was 1,25,000/-

He purchased new office on 17th April,2012 for rs. 25,00,000/-

Please help me to calculate capital gain tax on above transactions and how can he avail the benifits under Sec.54
Long Term C/F losses on mutual Fund was Rs. 13234/-

Please reply on urgent basis.

Jatin Agrawal

Jatin Agrawal (Expert)
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20 September 2012 1st flat
july07-nov 11 LTCG
2083334-980200*(785/551)=686860

2nd flat is stcg since less then 3 yrs
583334-313754=269580

3 rd plot ltcg
500000-125000*(785/497)=302565

ltcg loss on mf of 13234 is setoff against 686860+302565-13234=976192

net ltcg 976192
stcg = 269580

benefit of 54 aint available as a new residential hp is not purchased, also 54f is not applicable as land sold is not invested in a residential house.......

other members views are welcomed on the 54/54f ineligibility.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Thank you so much for your valuable reply.

Sir, is there any way to escape from tax liability or to minimise upto a certain extant??

he made a mistake , instead of investing in residential property , he purchased commercial property.

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Jatin Agrawal

Jatin Agrawal (Expert)
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22 September 2012 nope for property 1 & 2 there is no workaround.
for property 3 he can either invest in another resi property assuming his return due date is 30th sep or also block the net sale consideration in the CG account scheme & utilize the funds for acquistion of hp by 12-3-14, if its 31st july den nothing can be done

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2012 Thanks a lot Jatin Sir...