Surrender of LTCG under section 54F
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 September 2010
Dear Experts,
I claimed exemption under section 54F in return filed in June 2009 for a residential unit purchased in May 2008. I sold it due to personal reasons in July 2010 i.e before 3 years. I understand that I will have to surrender the LTCG exemption that I claimed.
Please advise when do I have to pay the claimed exemption? Do I have to pay in march 2011 or before? Please advise
I claimed exemption under section 54F in return filed in June 2009 for a residential unit purchased in May 2008. I sold it due to personal reasons in July 2010 i.e before 3 years. I understand that I will have to surrender the LTCG exemption that I claimed.
Please advise when do I have to pay the claimed exemption? Do I have to pay in march 2011 or before? Please advise
09 September 2010
The Exemption of LTCG in respect of the sale of residential unit is u/s 54 and not u/s 54F.
Any way, as u have sold the newly purchased residential house property before the expiry of 3 years, and therefore, the exemption allowwed earlier would be taxable. Hence, the capital gain which arises on the transfer of the house would be computed as under :
Sale Consideration
Less : Cost of Acquisition
of the Trfd. house as reduced by the
the exeption granted earlier.
This is the STCG of the previous yer of sale and u have to show in the IT return of the year of sale of house and plan to deposit the tax accordingly.
Any way, as u have sold the newly purchased residential house property before the expiry of 3 years, and therefore, the exemption allowwed earlier would be taxable. Hence, the capital gain which arises on the transfer of the house would be computed as under :
Sale Consideration
Less : Cost of Acquisition
of the Trfd. house as reduced by the
the exeption granted earlier.
This is the STCG of the previous yer of sale and u have to show in the IT return of the year of sale of house and plan to deposit the tax accordingly.
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 September 2010
Thanks Mr Sanjay.
Pls specify if the tax to be surrenderred can be deposited in march 2011 or do I have to deposit in advance tax form i.e in sep / dec and Mar in installments.
Pls specify if the tax to be surrenderred can be deposited in march 2011 or do I have to deposit in advance tax form i.e in sep / dec and Mar in installments.
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