(Property Owner :- Business of Resturant & He is a Proprietor of his Business ) I want to know If I Purchase I House (Property) of Rs.150000/- on 1998-99 & Sale it for 850000/- in 09-10 and Purchase New House (Property)for Rs. 950000/- on 09-10 within 5 Month after sale of Old one.
I want ot Know Can He Show his Old House as Property with Rs.150000/- in Balance Sheet of of 1998-99 onwards to 2009-10 or not ? If yes What about Difference of Sales Price & Purchase Price of Old ? Afterthan What about Tax on New Property ? would he has to Pay tax or not ?
Pls tell me Detailed Info...about this matter and I miss Something in it Please add in your Reply
20 October 2009
1. yes the assesee can show the old asset in his balance sheet from 1998-99 onwards to 2008-09 only not in the year 2009-10 as such property has been sold.
2. The difference between the sale price and indexed cost of acquisition is known as LTCG and also avail exemption u/s 54 of capital gain as the new house also purchased for Rs.950000/=. Thereafter the remaining amount is taxable as LTCG and tax paid on it @ 20%.
3. You have not write whether the such house property has been sold or not. thats why if sold within a period of 03 years from the date of purchase it is taxable as STCG and its cost of acquisition reduced by the amount of exemption availed u/s 54 earlier.
CAclubindia
