obeid (learner) (292 Points)
19 August 20111) A property has been sold by Mr X , can he claim capital gain exemption for the same by purchasing another also note that he has two more properties in his name.
2) What are the tax implication if he does real estate business i.e., selling and buying with those properties ( holding for more than 3years)?
praveen
(Chartered Accountant)
(6971 Points)
Replied 19 August 2011
1) in the first case he cannot obtain exemption by purchasing another house property. I think only way to save tax is by buying the NHAI or REI bonds.
2) In case he is in real estate business then it will become this business income and not under capital gains.
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Mihir
(Wealth Manager)
(5293 Points)
Replied 19 August 2011
u/s 54 long term capital gain from transfer of flat shall be exempt to the extent such capital gain is invested in the purchase of another flat within one year before or 2 years after the date of transfer and is not transfered within a period of 3 years from the date of its acquisition.
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 19 August 2011
a) he cn claim exemption u/s54
b) no capital gain exemption available as the profits will be under head P/G/B/P
mounika
(semi qualified chartered accountant)
(981 Points)
Replied 19 August 2011
| Originally posted by : Amit Gupta | ||
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a) he cn claim exemption u/s54 b) no capital gain exemption available as the profits will be under head P/G/B/P |
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aggred
CA Hardik Bunha
(self)
(2121 Points)
Replied 20 August 2011
WHY EVERY PERSON TRYING TO TELL HIS OWN ANSWER WHEN INCOME TAX SECTIONS TELL SOME OTHER THING. I REQUEST TO ALL ABOVE GUYS PLEASE READ SECTION CAREFULLY AND THEN REPLY.
THE ANSWER IS
(1) THE ASSESSEE WILL NOT ELIGIBLE FOR EXEMPTION THAT HE HAS ALREADY TWO PROPERTY (Refer supreme court judgement)
(2) If assessee is engaged in real sector then no capital gain tax attract to him. but if he is giving property on rent still his income will be considered as business income not house property income. this assessee will not be eligible for depreciation. (Refer latest case laws).
srishty mittal
(Entrepreneur- Manufacturing Sector)
(78 Points)
Replied 20 August 2011
YES,HE CAN CLAIM EXEMPTION,
IRRESPECTIVE OF THE NO. OF HOUSES HELD BY HIM :
1) AS PER SEC54 OF INCOME TAX ACT 1961, INDIVIDUAL & HUF CAN CLAIM EXEMPTION OF CAPITAL GAIN IN CASE A HOUSE (LONG TERM CAPITAL ASSET) IS SOLD & NEW HOUSE IS PURCHASED 1 YEAR BEFORE OR 2 YRS AFTER THE DATE OF TRANSFER OR THE CONSTRUCTION OF THE NEW HOUSE WITHIN 3 YRS.............................
2) IF HE DEALS IN REAL ESTATE, HIS INCOME WILL BE TAXABLE U/H PROFITS & GAINS OF BUSSINESS & PROFESSION. SO, HE CANNOT CLAIM EXEMPTION.
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 20 August 2011
@ hardik : the condition of already havin a house is applicable u/s 54F not 54 wherein House property is sold
CA Hardik Bunha
(self)
(2121 Points)
Replied 20 August 2011
my dear friend AMIT GUPTA
i appreciate your ranswer but u little far from correct understanding. 2 house hold is applicable to both sections. section 54 not dealing with number of house where section 54f dealing with 2 house. I hope u understand it.
Ashvin Bhanderi
(ACCOUNTANT)
(59 Points)
Replied 27 August 2011
CONTACT ME @ ashvin_bhanderi @ yahoo.co.in FOR BETTER REPLY...
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 28 August 2011
| Originally posted by : srishty mittal | ||
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YES,HE CAN CLAIM EXEMPTION, IRRESPECTIVE OF THE NO. OF HOUSES HELD BY HIM : 1) AS PER SEC54 OF INCOME TAX ACT 1961, INDIVIDUAL & HUF CAN CLAIM EXEMPTION OF CAPITAL GAIN IN CASE A HOUSE (LONG TERM CAPITAL ASSET) IS SOLD & NEW HOUSE IS PURCHASED 1 YEAR BEFORE OR 2 YRS AFTER THE DATE OF TRANSFER OR THE CONSTRUCTION OF THE NEW HOUSE WITHIN 3 YRS............................. 2) IF HE DEALS IN REAL ESTATE, HIS INCOME WILL BE TAXABLE U/H PROFITS & GAINS OF BUSSINESS & PROFESSION. SO, HE CANNOT CLAIM EXEMPTION. |
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Agreed
@ hardik - which case law you are talking about. please mention here.
Please mention the wordings of Act for 54 where it says exemption is not granted .... from where you have read
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