Capital Gain Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2011 -DEAR EXPERTS,

I HAVE GOT POSSESSION OF FLAT (COST 20 LACS) IN FY 2009-10 WHICH WAS BOOKED IN FY 2006-07 AND PAYMENTS WAS MADE AS PER THE WORK PROGRESS OF THE BUILDING ACCORDING TO AGREEMENT.BANK LOAN IS ALSO AVAILED .

I have sold 12 YRs OLD FLAT(COST 7 LACS) AT ABOUT Rs. 18 LACS in Sep-10.

As per my belief No Capital Tax will be attracted as the date of possession of new flat is within a year from selling of old flat.

Kindly confirm and also quote case laws.

THANKS & REGARDS

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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05 February 2011 Yes your right....!!
HOWEVER I HAVE PROVIDED YOU WITH SOME MORE INFORMATION FOR UR EASE

The Workings may be summaried as below

Particulars Amount

Sale Consideration 18L
(-)Exp. on Tnfr* -
Net Sale Consoderation 18L
(-)Indexed Cost of Acquisition
7 L x 632/351 12.6L
(-)Indexed Cost of Improvement* -
-------
Gross L.T.C.G 5.4 L
(-)Exemption U/Sec 54 5.4 L
(Limited to Gross LTCG) -------
Net Taxable LTCG 0
-------

Note:
1) *Assumed that there is no Expenses on transfer, however if there was any such amount, the same may be factored in.
2)Assumed that there is no Improvement Done therefore no Indexed Cost of Improvement
3)Exemption will be Limited to the amount of C.G. Therefore even if the new Flat is purchased for Rs.20L there is no provision to Carry forward the Difference of Rs.14.6(Rs20L - Rs.5.4L)

Hope i have sufficiently answered ur Querry.

Please feel free to post or Log in to my Community "Lo Aca" for further Clarifications

Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),ITF Hons, SAPM Hons

Message likes : 1 times

Guest

Guest (Expert)

07 February 2011 Agree with Mr. Jagdish

Message likes : 1 times

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