Capital Gain Treatment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 I want to know about Capital treatments... pls guide to fillup my IT Return with this matter.

I had a house which was purchase on 91-92. from rs. 225000/- which i sold out on feb'2010 for rs. 14,00,000/- & also to save tax Rs.8,50,000/- rural capital gain bonds....
so now rs. 1151745 is been capital gain which including in capital or not ?

in which column & which sec./division i have filed in ITR-4 pls guide me.. urgently

thanks in advance

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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04 August 2010 it is long term capital gain, it will be shown ITR 4 sheet CG-OS point no 3 Others assets for which option under proviso to section 112(1) not excercised. (i.e you are taking indexatin benefit)

investment in rural captial gain bond will be shown in same point no. 3(d).

No, Captial gain will not be added in capital because you have to reinvested it within specified time.

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 thanks for reply sir,
but which amount where to put ? rs.1400000 in which collumn, rs. 225000 which column & rs. 850000 in which column,

and also tell me how to balance my balance sheet from all this amounts.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 what about diff. of purchase & sale price.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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04 August 2010 1400000 in column B) 3)a
225000 with indexation B)3)b)i)

850000 in B)3)d)

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2010 thanxs for reply but i want to know about entry in balance sheet & P&L too...

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 August 2010 bank a/c -----dr 14,00,000
to, house property 225000
to, long term capital gain 1175000
(amount recd on account of sale of house property and capital gain arise of rs. 1175000)

investment in rural capital bond -----dr 850000
to , bank 850000
(amount invested for exemption of long term capital gain)

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 thanks sir once again,
one more thing form capital gain I have given Rs.450000/- to my daughter in law. so what proof I have to prepare for it... now its possible after sale property after 3 months.... pls help me sir....

thanks alot for instant reply.

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010
NO PROBLEM ........
MAKE A GIFT DEED THAT YOU ARE GOING TO GIFT TO YOUR daughter in law(WHO FALLS UNDER RELATIVE) . IT WILL NOT BE TAXABLE IN THE HANDS OF YOUR daughter in law .

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Pls give me the gift deed contains....and what points I have to print on which i have to be careful. thanks alot (which means nothing to your kind replies)

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 and also if I gave gift its right to prepare after given to her (what happened if I give gift on feb & prepare gift deed on august.
and also if i give gift to my daughter in law where to pur that Rs.4,50,000/- amount on balance sheet & also effect of gift entry.

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Hello, Sir
When I entered in CG-OS Rs.325000/- shown in long term capital gain ?
how to solve ? if i do nesessery investment ?

pls solve my que......sorry for your inconvience.....bcs I always need your help...thanks

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010 GIFT OF MONEY TO DAUGHTER IN LAW

LET IT BE KNOWN TO ALL by this Deed of Gift that I, …………….. S/o…………… R/o……………….. do, hereby, out of natural love and affection and also out of my free will and without any force, compulsion or undue influence, transfer an amount of Rs………….. to my son Mr……….. X ……… S/o……….. R/o…………….

IN WITNESS WHEREOF, I have signed this deed of gift on …………

In presence of
Witnesses: Sd/-Donor……….
1……………..
2………………..

CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010 AS THIS IS VOLUNTARY GIFT. NO NEED TO REGISTER JUST PURCAHSE ASTAMPPAPER OF RS 50 ON BACK DATE. AND ALSO SIGNED ON BACK DATE.

JUST PASS THE FOLLOWING ENTRY

GIFT -----------DR
TO, BANK.

CAPITAL ...............DR
TO , GIFT.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010 AS YOU HAVE ALREADY MENTION THAT YOU HAVE INVESTED IN RURAL BOND . THEN NO NEED TO INVEST.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 HELLO SIR,
OK LET ME CLEAR,
RS.14,00,000/- IN 3A
RS. 2,25,000/- IN 3B(i)
RS.10,75,000/- BALANCE 3C
RS. 8,50,000/- INVESTMENT IN RURAL BOND
RS. 2,25,000/- LONG TERM CAPITAL GAIN

PLS ADVISE WHAT TO DO.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010 RIGHT

BUT IN 3Bi, amount will be
225000x CII OF 2009-10/CII OF 91-92

CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 August 2010 i,e

=225000 x 632/199 = 714572 will be your indexed cost of acqusition.