Tax liability on long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2012 Taxation(Rate of Tax) of Long term capital gain arised from sale of immovable property by a partnership firm.Indexation is allowed in this case, whether the firm is eligible to avail any exemption by reinvestment of LTCG in any other property.
Saabir
Accountant.

Mihir Doshi

Mihir Doshi (Expert)
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03 May 2012 No exemption is allowed to partnership firm

Yogesh Agarwal

Yogesh Agarwal (Expert)
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03 May 2012 Exemption under section 54EC is available if you invest the amount within 6 months from the date of transfer..

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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03 May 2012 There is no exemption for partnership firm to to invest long term capital gain in other property.

However U/s 54EC, the same amount can be claimed as exemption(upto 50 lakhs per financial year) by investing Bonds of NHAI or REC((minimum holding period 3 years) with in 6 months from the date of transfer.

Mihir Doshi

Mihir Doshi (Expert)
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03 May 2012 Thanks Experts

I was not aware about the application of 54ED for partnership firm.