In case a sale is made of Rs.1 cr resulting into capital gain. then if the said amount is invested in a residential property worth Rs.2 cr.
Rs. 1cr can be claimed as deduction
what about the balance Rs. 1cr??
urvi jitendra bhavsar (CA Final Student) (116 Points)
25 January 2010In case a sale is made of Rs.1 cr resulting into capital gain. then if the said amount is invested in a residential property worth Rs.2 cr.
Rs. 1cr can be claimed as deduction
what about the balance Rs. 1cr??
Amir
(Learner)
(4016 Points)
Replied 25 January 2010
Dear Urvi,
Exemption cannot exceed the amount of taxable income, hence Exemption will be of Rs. 1 Crore only.
I culdn't understand what u r trying to say..plz clarify
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 25 January 2010
balance amount of 1 crore cannot be claimed in aby subsequent years
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 25 January 2010
Look, the first property u sold for 1Cr., so if there's any profit from that sale...
Then, the amount of exemption will be lowest of profit earned or the amount invested in new property....
So, 2 crores is obviously not possible
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