R.Suresh (Sr. Executive) (394 Points)
27 May 2009
My friend purchased one plot for Rs 8 lakh for year 2004 & he sold on middle of the year 2008 for Rs. 30 lakh and he invested roughly sum amount in Capital gain tax scehme with bank.
Now my question is my friend is going to avoid the tax from CG..
Kindly give me the solution for the above query.
thanks in Advance for replies.
Aditya Jain
(Final (New) November 2011)
(763 Points)
Replied 27 May 2009
obviously he would get a deduction of amount invested out of capital gains if the investment is covered u/s 54 .
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 27 May 2009
he can get deduction u/s 54 F if the total sale consideration is used for purchasing a residential house property with in 3 yrs from the date of sale.
if he use partial amt then deduction will be allowed partial. such new house should not be sold with in 3 yrs of purchase.
PRANAV MISHRA
(CA Final student)
(573 Points)
Replied 27 May 2009
Depositing an amount in Capital Gains Scheme is not for avoiding tax from CG.It is earmarking that sum for being utilised for investment in specified capital assests.If the individual fails to make required investment within time the amount deposited in the scheme shall be taxed as CG.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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