Can you help on Capital Gains of NRI

Tax queries 652 views 4 replies

a) An NRI sold one Flat & one Shop, which he owned & got Long term Capital Gains and he invested the complete proceeds thereof in booking new flat in F.Y 2009-2010.

 

Now Long Capital Gains for:

1.)    Shop comes to Rs. 5,00,000 & Sales proceeds is Rs. 20,00,000/-

2.)    Flat is Rs. 30,00,000/-

 

He booked Flat in under construction and paid in that Financial Year Rs. 50,00,000/-.

Apart from this as on date of purchase he owns only one Flat which is also under construction, possession not yet received.

 

Can benefit u/s 54 & 54F, be taken simultaneously, whereby the GTI will become NIL.

 

b) If other income is NIL and GTI is only Long term capital gains i.e. Rs. 2,00,000/- will Rs. 1,60,000/- (Basic Exemption) allowed & only balance Rs. 40,000/- will be taxed @ 20% + 2% Edu & 1% Sec. & Hig Cess.

Replies (4)

The Act doesnt explicitly bar you to claim exemption under 54 and 54F with the same purchase, but the method of calculation of exemption, indirectly, alludes to it. 

mr raj u r right.....

Thanks for your inputs!

But, Mr Nishat Agarwal, Can you elaborate as to how idirectly the method of calculation of exemption u/s 54 & 54F bars us from claiming exemption with the same single purchase.

Can someone comment please.


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