LTCG Exemption Eligibility
This query is : Resolved
25 January 2020
Hi
We sold a joint property last year which was in the name of my grandfather who expired few years ago. My mother and my uncle were declared legal heirs of the house as my father had expired earlier than my grandfather. From my mother's share of sale proceeds, we are planning to buy land and construct a house. The price of land itself is high and entire share of my mother from sale proceeds will be used. We are planning to take a home loan for constructing house. My question is:
Will my mother be able to take LTCG exemption if we complete construction of house within 3 years of date of sale of old house without depositing any money in capital gains account?
We sold a joint property last year which was in the name of my grandfather who expired few years ago. My mother and my uncle were declared legal heirs of the house as my father had expired earlier than my grandfather. From my mother's share of sale proceeds, we are planning to buy land and construct a house. The price of land itself is high and entire share of my mother from sale proceeds will be used. We are planning to take a home loan for constructing house. My question is:
Will my mother be able to take LTCG exemption if we complete construction of house within 3 years of date of sale of old house without depositing any money in capital gains account?
25 January 2020
You have not deposited the capital gains in the capital gains account before the due date of filing the return hence LTCG exemption not available.
25 January 2020
Sale has happened in September 2019 which FY 19-20 and due date of filing ITR for FY1920 should be 31st July 2020. Can you explain what is the basis of above reply? As per my understanding, I still have time to invest in capital gain bonds under Section 54. C
25 January 2020
Yes you are right you still have the time to invest. You said last year so I have taken it as 1918-19.
25 January 2020
Thank you. Can you clarify my query now? If I use my capital gain amount to buy land and then take home loan to start construction of house before 31st july 2020 but not able to complete construction before 31st July 2020, then can I claim capital gain exemption without buying bonds or depositing any money in Capital gains account?
26 January 2020
In such a case no need to deposit in bonds construction can be completed with borrowing within 3 years.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
