Ltcg on sale of residential plot
This query is : Resolved
03 March 2012
Dear friends Holi Greeting to all of you,
Please solve one my query if any person holds at a time one residential building and another is a residential plot. If such person sale the above residential plot and realized LTCG on sale of plot in the F.Y.2011-12 of Rs.12, 00,000/- in respect of sale consideration of Rs.20, 00,000/- .In this respect the above sale consideration is deposited into schedule bank in a capital gain a/c within the 6 month from the date of sale/or before filing of the ITR, by the such person, And simultaneously such person book a flat in a project of reputed builder and utilized amount through capital gain account for payment to the builder. But builder cannot complete the project/possession of flat within 3 year.
With reference to the above case, can any tax liability will be arising in the hand of such person in the F.Y.2011-12? Or any subsequent year, person can avail any deduction under chapter –Capital Gain., Please specified the section.
If in the above case, the person holds at a time two residential property and one residential plot. And LTCG on sale of plot and utilized to the above mention method. Then what will be happen. Please help me.
Thanks with JAI HO
Satyendra Kr. Gupta
New Delhi
Please solve one my query if any person holds at a time one residential building and another is a residential plot. If such person sale the above residential plot and realized LTCG on sale of plot in the F.Y.2011-12 of Rs.12, 00,000/- in respect of sale consideration of Rs.20, 00,000/- .In this respect the above sale consideration is deposited into schedule bank in a capital gain a/c within the 6 month from the date of sale/or before filing of the ITR, by the such person, And simultaneously such person book a flat in a project of reputed builder and utilized amount through capital gain account for payment to the builder. But builder cannot complete the project/possession of flat within 3 year.
With reference to the above case, can any tax liability will be arising in the hand of such person in the F.Y.2011-12? Or any subsequent year, person can avail any deduction under chapter –Capital Gain., Please specified the section.
If in the above case, the person holds at a time two residential property and one residential plot. And LTCG on sale of plot and utilized to the above mention method. Then what will be happen. Please help me.
Thanks with JAI HO
Satyendra Kr. Gupta
New Delhi
03 March 2012
Part I- One House One Plot:
---------------------------
In case the amount from Capital Gain has been utilised for the purpose of purchase of
a flat, and has been paid to the builder ,the onus of the assessee gets completed. He can claim exemption under Section 54F. The incidence of completion will not affect -the claim of exemption unless the assessee breaches other conditions of Section 54F.
.
As due compliances, as required on the part of the assessee, has been made by him, he can not be penalised for the fault of the third party, i.e. the builder.
.
However, we are in FY 2011-12, and it is
not wise to predict or utter that the builder can not complete the flat.
.
---------------------------
In case the amount from Capital Gain has been utilised for the purpose of purchase of
a flat, and has been paid to the builder ,the onus of the assessee gets completed. He can claim exemption under Section 54F. The incidence of completion will not affect -the claim of exemption unless the assessee breaches other conditions of Section 54F.
.
As due compliances, as required on the part of the assessee, has been made by him, he can not be penalised for the fault of the third party, i.e. the builder.
.
However, we are in FY 2011-12, and it is
not wise to predict or utter that the builder can not complete the flat.
.
03 March 2012
Two Houses and One Plot:
------------------------
Section 54F can not be availed.
In such a situation you may refer Section 54EC.
Under Section 54EC, you may purchase Capital Gain Bonds (Max Rs. 50.00Lac in a FY) of NHAI/REC etc within 6 months from the sale of Original Asset .
.
------------------------
Section 54F can not be availed.
In such a situation you may refer Section 54EC.
Under Section 54EC, you may purchase Capital Gain Bonds (Max Rs. 50.00Lac in a FY) of NHAI/REC etc within 6 months from the sale of Original Asset .
.
Message likes :
1 times
05 March 2012
Thank you so much to you sir, for your excellent suggestion regarding my query.
Thanks & regard with JAI HO
Satyendra Kr. Gupta
Mobile No.9873490428
Thanks & regard with JAI HO
Satyendra Kr. Gupta
Mobile No.9873490428
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
- Gst registration in the state of maharashtra
- Service Provider GST
- 26B Form submission
- Input tax credit on officw kitchen furniture fixed to wall and drawers
- Input tax credit on modular office kitchen
- TDS on amenities like electriity / transformer
- What is turnover in case of intra day trading?
- Reposting my query kindly reply.
- ITC of Insurance on Capital Electronic Goods
- What is basic exception limit as per Union Budget 2025
- Query regarding filling form 112 during articleship
- Input Credit available in Credit ledger
- If the GSTR1 filed after due date and the invoices mentioned GSTR1-A, will we be able to claim ITC o
- REGARDING RETIREMENT OF PARTNER
- Regarding consequences of retirement of partner in firm
- Time Limit for Availment of ITC laying in ITC Reversal Ledger
- Tally entry - Debit note
- Debit Note of GST amount
- Regarding ITC taken or not
- GSTP registered individual should apply gstin for trading business
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
