Tax planning

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rohit (Querist)
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16 September 2013 PLOT PURCHASED -40000 RS IN THE YEAR 1988-89 TOTAL PLOT AREA – 1350 SQ. FT

450 SQ FEET SOLD IN APRIL 2013 FOR 30 LACS, [9LACS THROUGH CHEQUE,21 LACS IN CASH}

CONSTRUCTION ON REMAINING 900 SQ.FT WAS STARTED IN MAY 2013 BY USING 21 LACS AMOUNT?

WHAT WILL BE THE CAPITAL GAIN? HOW TO SAVE 9 LACS WHICH WAS GIVEN THROUGH CHEQUE?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 September 2013 Sale Consideration : 30,00,000

Less:
Cost of Acquisition
{450/1350 X 40000}

1334 X 939/161 77,762
{Indexation benefit}

Long term Capital Gain 29,22,238

You can exemption U/s 54F for this 21 lacs

However, 21 lacs should be used in construction of residential property...

rohit

rohit (Querist)
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17 September 2013 HOW TO SAVE REMAINING 9 LACS?

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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17 September 2013 You can claim Exemption U/S 54 EX for the remaining 9 Lacs,
Investment in NHAI and RECL bonds within 6 months from the date of sale..

rohit

rohit (Querist)
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17 September 2013 LONG TERM CAPITAL GAIN IS 21 LACS OUT OF SALE CONSIDERATION OF 30 LACS, 21 LACS IS EXEMPT UNDER SECTION 54F AND WHOLE 30 LACS IS INVESTED IN CONSTRUCTION OF RESIDENTIAL HOUSE PROPERTY

HOW TO SAVE TAX ON 9 LACS {30-21}?