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??
3 Replies
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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