Capital gain tax on residential land
Querist : Anonymous
What's the value available for capital gain exemption under Sec 54F?
from the proceeds, if land is acquired and a building is constructed, is the exemption based on registered value or consideration paid under Sec 54F? (eg: registered value of new land is Rs 3 Laks, sale consideration paid for land is Rs 7 Laks & 3 Laks is cost for constructing building, is the exemption for Rs 6 Laks or Rs 10 Laks).
what proofs should be maintained as cost for constructing of building, since most expenditure will be in cash? if in above example cost of land was Rs 10 laks and and loan is taken for construction of building, can exemption be claimed on entire cost of land - Rs 10 laks.
are there any restrictions on building (eg: number of living units/floors that can be constructed) if the entire building is registered as one unit (eg: can 5 - 2bedroom units be constructed on single plot of land and the entire property be claimed for capital gain exemption)
Take 10L for capital gain working
Under 54F, the amount paid is 7L and construction 3L....10L qualifies for 54F, subject to however other conditions set in that section
Querist : Anonymous
if in above example cost of land was Rs 10 laks and and loan is taken for construction of building, can exemption be claimed on entire cost of land - Rs 10 laks.
are there any restrictions on building (eg: number of living units/floors that can be constructed) if the entire building is registered as one unit (eg: can 5 - 2bedroom units be constructed on single plot of land and the entire property be claimed for capital gain exemption)
Whereas in 54 plurality of house is sanctioned by many courts, so far as 54F is concerned the conditions of owning A HOUSE is very strictly observed. Subject to that...there is no any restriction of square feetage of the house...)
And one more simple point, try to bear....
Never say only land is purchased...Always say a house is construted out of sale consideration of the capital asset, the balance if any was met out of loan...
Querist : Anonymous
Mr Mukesh Ambani's house is 27 storied, having parkings, guest rooms, seminar hall, hellipad and what not...It is one unit....
Same way...in your case let it be any number of units....the property should be ONE and owned by the one who has made the capital gain. That's all
See is it like that? Capital gain is 10lakh and cost of new asset is 1 crore..
you can claim the exemption u/s 54F.
Anything else? Please ask.
Querist : Anonymous
How can we prove that we have purchased that in 7 lakhs when there is registry is of Rs. of 3 lakhs.
Querist : Anonymous
Registration is must in case of all registerable transactions....
Unregistered deed per se carries no value. The Assessing Officer may not agree to that.
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